A Schumpeterian theory of underdevelopment – a contradiction in terms?

Reinert, Erik S. (1994): A Schumpeterian theory of underdevelopment – a contradiction in terms? Published in: STEP report No. 15 (1994)

Abstract

The aim of this paper is to show that the dynamics of Schumpeterian economics, in addition to explain the creation of wealth, also implicitly contain the elements of a theory of relative poverty. It is argued that the German tradition of economics, of which Schumpeter is a part, has always encompassed the necessary elements of a theory of uneven growth. List, Marx, and Schumpeter have all emphasized different aspects of this uneven growth. This contrasts sharply with the Anglo-Saxon tradition which, particularly since the 1890’s, has produced theories of growth and trade which imply an even, converging distribution of world activity and income.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic development; growth theory; Schumpeter; uneven development
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B0 - General; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development

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