Development Economics

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DEFINITION of 'Development Economics'

A branch of economics that focuses on improving the economies of developing countries. Development economics considers how to promote economic growth in such countries by improving factors like health, education, working conditions, domestic and international policies and market conditions. It examines both macroeconomic and microeconomic factors relating to the structure of a developing economy and how that economy can create effective domestic and international growth.

BREAKING DOWN 'Development Economics'

Development economics seeks to determine how poor countries can be transformed into prosperous ones. Strategies for transforming a developing economy tend to be unique, because the social and political background of countries can vary dramatically. Some prominent development economists include Jeffrey Sachs, Hernando de Soto Polar, and Nobel laureates Simon Kuznets, Amartya Sen and Joseph Stiglitz.

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