Author information:
Magdolna Csath: Pázmány Péter Catholic University, Research Leader; University of Public Service, Private Professor. E-mail: csath.magdolna@uni-nke.hu
Abstract:
In this essay, we explore how to obtain a more accurate picture not only of the growth situation as measured by traditional economic indicators, but also of the level of development, which also raises the possibility of becoming trapped. We distinguish between development and growth, pointing out that Hungary has good growth figures, but lags behind in terms of development indicators. This discrepancy requires further, more detailed analysis in order to define desirable targets for development indicators that are independent of growth indicators, and to avoid the development trap by achieving them. This is also justified because, in the longer term, the evolution of development indicators also affects the chances of sustainable growth and allows for more general, systemic qualitative progress. Based on the statistical data presented in relation to the issues raised, we conclude that it would be necessary to construct a mathematical model of growth and development to illustrate and econometrically analyse the dynamic relationship. But this is not undertaken in the context of this essay.
Cite as (APA):
Csath, M. (2022). Growth or Development Trap. Financial and Economic Review, 21(2), 152–174. https://doi.org/10.33893/FER.21.2.152
Column:
Our Vision (Essay)
Journal of Economic Literature (JEL) codes:
E22, I15, I25, J24, O11, P52
Keywords:
middle-income trap, middle development trap, resilience, adaptability, intangible investment, growth models
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