DEVELOPMENT ECONOMICS AND MONEY-CAPITAL RELATIONSHIP

Abstract

Purpose- In our days, the major problem of developping and/or underdevelopped countries concerning economic development may be stated as insufficient capital accumulation, the limited possibilities of savings and the difficulty of accessing foreign financing channels. In order to realize the production process which is the basic element of economic development, the main factor needed is capital. In this study; some supportive opinions have been proposed for developping and/or underdevelopped countries to attain a satisfactory level of economic development in today’s World conditions.

Methodology- Based on literature review, especially by the means of increasing savings and using internal channels, some theoritical findings and solutions are proposed for developping and/or underdevelopped countries in the process of capital accumulation and economic development.

Findings- The question of why countries differ with respect to income is the major focus for development economics subfield. The answer of that question may be found in the ability to accumulate capital in different countries. Obviously; the rise and fall of capital as a key factor for economic development, depend primarily on technological changes observed after Industrial Revolution and Technological Revolution. In our days; more attention should be given to education, governance, technological advances for developping and/or underdevelopped countries in the content of economic development and growth.

Conclusion- In our World which is completely globalized in economic terms; staying underdeveloped for a considerable number of countries should be seen as a problem for developed countries as well. In conclusion; it may be stated that capital accumulation has lost its importance while some other factors including educated human resources, good governance, technological changes have gained priority in the process of economic development. And finally, it may be concluded that sole capital accumulation could not be enough efficient to access these features mentioned above.

Keywords

• Development economics,capital accumulation,savings,financing channels,production

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