Applied Econometrics and International Development, vol.6, no.3, pp.5-30, 2006 (Refereed Journals of Other Institutions)
This study aims to make a different approach to development. The study assumes that development diverges according to countries, periods and effecting factors. Development exhibits a diversifying tendency in periods and countries. A common recipe of development can not be considered. The relation between human capital, physical capital, population, technological progress and development is real but not sufficient. Development has aspects that should be explained with debt, role of the state, tax structure, political instability, defence expenditures, geographical position, foreign capital, specialization in foreign trade and technological adaptation. Explanatory variables will all together explain economic growth. Otherwise, why countries that had close development performances in 1820 and 2005 period diverged and had growth miracles while some others had increased poverty can not be explained. In the study, OECD countries, EU countries, transition countries, Asian countries and middle-East countries are analysed. Development problem will be analysed with econometric unit root tests and a specific method developed by the author which employs standard deviations of GDP and per capita GDP figures of countries for the period between 1950 and 2002.