Social Determinants of Economic Development Theories
Social Determinants of Economic Development Theories

Summary/Abstract: This article proves a conceptuality of social vector of economic development as being the main priority of the national economic modernization and economic safety of state. Theories including social determinant of model of economic growth were determined, theories of economic balance for analysis of the underdeveloped countries development were revised as well as Neoclassical and Keynesian concepts that have similar social importance of theories of economic development. Theories of dualistic economics where the economic development is viewed as a process of overcoming dualism between traditional and modern economic sectors were discussed. The article proves that the main socially important obstacle to the rise of capitalism is an impossibility of poor countries to create capital. Also discussed was the necessity to build a three-sector model of economic development where redistribution of human capital between the two countries is possible. Four types of economic development models consistent with the main social dominant theories of economic thought were chosen, and they are as follows: Keynesian, Neoclassical, Institutional and New Endogenous models of growth. In fact, the main factor of economic development is the human capital and the accumulation of knowledge, and the priority factor of economic development is to improve the living standards and the possibility to satisfy needs of all members of society.

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