DP21124 Searching for Fish in Trees (緣木求魚)? Economic Development when Context Matters

Tamara Ceaikovski

In this chapter, we develop a framework for analyzing the determinants of economic development and their implications for policy. We distinguish between classical determinants—such as inputs into education and health, access to credit, and geography—and non-classical determinants—including cultural values, social norms, beliefs, identity, and social organization. We classify these determinants along two policy-relevant dimensions: whether they can be clearly ranked in terms of their