Recent Developments in Growth Theory and Their Implications for Bangladesh

This paper reviews the recent developments in growth theory and discusses their implications for Bangladesh. It starts with an exposition of the Neoclassical Growth Theory (NCGT) and then presents several variants of the New Growth Theory (NGT). The paper identifies the unresolved issues of economic growth theory and highlights the implications of the growth theories for cross-country growth regularities. The paper next examines Bangladesh's growth record in the light of the recent growth discussion and identifies the areas of match and incongruities between the experience and the theories. The paper ends by drawing some lessons from the recent growth discussion for future growth efforts of Bangladesh.