ABSTRACT

This chapter attempts to address the first research objective which is to review the theories and indicators of growth and inequality. It focuses on the concepts, theories and empirical work on development, structural change and inequality. The chapter discusses on the theories and empirical work on manufacturing location. Economic development as a sub-field of economics occurred after World War Two especially in the 1950s and 1960s when most countries gained their independence. Economic growth, development, and structural change are closely connected in economic discipline and sometimes are used synonymously. The Neo-classical model shows that regional disparities in the growth of output per worker can be explained by regional differences in the ratio of technical progress and by regional differences in the growth of the capital per labour ratio. The growth pole and growth centre theories emphasise the concepts of dynamic disequilibrium and intersectoral linkages which help to explain the processes of nation or region structural change.