Journal de l'économie mondiale

Patterns of Economic Development in the World

Abstract

Hae S Kim

The purpose of this paper is to identify different patterns of economic development among the countries (222 countries/territories) in the world. The economic development was based on both economic growth (quantitative) and quality of life (qualitative) respectively. Several patterns of economic growth were identified: knowledge-based, trade-based, savings-based (resource/oil rich-based) and ethnic-religiously affected. The knowledge-based economy was found most predominant pattern of economic growth, followed by the trade-based. Neither the savings-based nor the ethnic-religiously affected pattern was found significant in affecting economic growth. The knowledge-based and trade-based patterns of economic growth have positive effects on both objective and subjective quality of life as well as on reducing conflict, domestic and international. Ethnic-religious fractionalization increases poverty level and unequal distribution of income, while the oil-richness increases conflict and relative deprivation. Although the dominance of the knowledge-based economy does diminish the effect of the 'traditional' pattern of the free-trade on economic growth, these two patterns are all significant in enhancing economic growth and quality of life. Countries featured with the patterns of ‘diseconomies' (savings-based/oil-richness, ethnic religiously-affected) need to follow suit to catch up with the most successful patterns of economic growth. When/if these countries, developing or developed, pursue policies for economic development, each of the variables out of which the patterns of the knowledge-based as well as the trade-based economy were built should be cross-national comparatively examined for their respective strengths.