Research Proposal on "Economic Development and Opposing Theories"

Research Proposal 5 pages (1477 words) Sources: 5 Style: APA

[EXCERPT] . . . .

Economic Development and Opposing Theories

In the United States, current economic crises have left many states, governments, and individuals worried about unemployment, retirement, and bankruptcy. While this is a federal program, it translates to the states. In many ways and for many reasons, states try to develop their economies. This is most obviously seen during years when the governor is up for election. With policies to decrease unemployment, encourage college attendance, and encourage firm development, governors and their state advisors attempt to increase economic development. For decades, politicians have been theorizing about state economic development, how it takes place, why it takes place, and how it can be classified, among other research questions. This study will examine four relevant studies in the field of state economic development, summarizing them, and then comparing and contrasting their theories regarding state economic development.

Summaries

While the subject of economic development is old, not all scholars agree that the theories in connection with the subject have been distinguished appropriately. In fact, this is the premise of James J. Wilson's (1999) article, "An institutionalist take on state activism in economic development: a theoretical framework." Wilson (1999) argues that all work prior to his article classified the topic of state activism in economic development too simply. Primarily, Wilson (1999) bases his argument on the claim that ad hoc classification systems, taxonomies, and conceptual frameworks are the only three categories that scholars have used to order types of state activism in economic development. He deals with these classifications from most general to most specific. For instance, ad hoc classification systems are sets of "arbitrary categories" designed to classify observations in state activism in economic development. Thus, this classification does not allow much room for research or study. Moving slightly more toward the use of research and study are the taxonomies. More specific than ad hoc classification systems, this category of classification is closely associated with the world of scholarship, offering complex definitions, but not explanations for observations in state activism in economic development. Finally, the most specific category in Wilson's (1999) categorization is the conceptual framework, as it offers "explanations and predictions for empirical observations" (Wilson 1999). However, because they do not offer these predictions and explanations in conjunction with taxonomies and because they do not allow for deductive reasoning, Wilson (1999) argues that conceptual frameworks are still inferior. Thus, Wilson (1999) argues that theoretical conceptualization models that do the complex subject justice. Instead of the above propositions, Wilson (1999) creates a theoretical framework based on growth theory, economic policy, and international constructs that he suggests is the best framework for viewing the subject thus far.

Following Wilson's (1999) suggestion, several theorists have put into practice specific models for describing state economic development. For instance, Paul Trogen's essay, "Which Economic Development Policies Work: Determinants of State Per Capita Income," argues that economic development policies only work if they offer incentives for firms. In other words, Trogen argues that these policies only "add to state economic effectiveness and welfare if they compensate manufacturing firms for the positive externalities they produce." Trogen goes on to explain that the controversy surrounding state involvement in economic aid is great. In fact, many proponents of competitive policies that offer incentives to companies for locating in their state suggest that these programs actually increase development, while their opponents argue that the state programs simply cancel each other out. Trogen weighs in by suggesting that no one can know the truth because no theoretical model currently exists to show the policies in comparison. In his model, Trogen argues that states can only succeed in economic development when they provide incentives up to the amount of positive results they will get from the companies in terms of economic development. Paying companies more than they pay the states, which is what the alternative really is, does not yield positive results.

Like Trogen's model, Robert Costello of the American Trucking Association and Allen Brierly, a professor of Political Science, suggest another model that states may choose to implement when trying to grow their economies in his essay, "Accounting for State Economic Performance: A Time-Series Cross-Sectional Analysis of the Limits of State Economic Policy." As Wilson (1999) suggests, Brierly and Costello's model is a specific recommendation for certain actions in growing a state economy. Like Trogen's model, Brierly and Cotello's argues that certain variables work when trying to encourage state economic growth, while others… READ MORE

How to Reference "Economic Development and Opposing Theories" Research Proposal in a Bibliography

Related Research Proposals:

Process of Economic Development Essay

Economic Development

Role of Geography and institutions in economic development

Over the years, there have been debates on the role that geography of a nation or continent plays in contribution… read more

Essay 5 pages (1394 words) Sources: 0 Topic: Economics / Finance / Banking

---

Trade Issues in Economic Development Term Paper

Trade Issues in Economic Development

This report attempts to present insights into trade issues as they relate to economic development, globalization and developing countries. Today, globalization and world trade are… read more

Term Paper 7 pages (2307 words) Sources: 1+ Topic: Economics / Finance / Banking

---

Role of Private Investment on Economic Development in Iraq Literature Review

Role of Private Investment on Economic Development in Iraq

Private investment in developing countries

An overview on early Empirical studies

In 1980s, the developing countries encountered some increment in their… read more

Literature Review 40 pages (14411 words) Sources: 45 Topic: Economics / Finance / Banking

---

Urban Economics Research Proposal

The localization approach does not account for shifts in industry conditions than can weaken even a very strong cluster. Where there is an emphasis on fostering MAR externalities, localization economies… read more

Research Proposal 11 pages (3312 words) Sources: 10 Topic: Economics / Finance / Banking

---

Macro-Economics Macro Economics There Are Numerous Issues Term Paper

Macro-Economics

Macro Economics

There are numerous issues that governments must refer to when developing the strategy that the budget must be based on. Such issues are represented by fiscal and… read more

Term Paper 24 pages (6697 words) Sources: 30 Topic: Economics / Finance / Banking

---

View 100+ more related papers  >>