Theoretical aspects of economic growth in the globalizing world

Abstract

This chapter studies the conceptual foundations of economic growth in the globalizing world and conducts a problem analysis of “underdevelopment whirlpools” as an obstacle to economic growth. It describes the methodological foundations for the formation of a new concept of economic growth, and studies the philosophy of growth as a multi-disciplinary concept and an independent branch of the general theory of philosophy. The authors analyse the notion and sense of economic growth, determining its most important characteristics and the factors which build it, as well as determining the contradictions within economic growth and approaches to measuring it. This chapter also determines the limits of economic growth, studies its interconnection with the notion of “economic development”, and shows how to establish economic growth rate norms a complex task that is especially relevant today and determines their quantitative limits. The authors study the notion of “underdevelopment whirlpools” from the point of view of institutional theory, determine the mechanisms by which an economy is sucked into an “underdevelopment whirlpool”, and how to overcome them. The authors also offer a model for calculating “underdevelopment whirlpools”, study their dynamic nature, and map them throughout the world’s developing countries.