A Behavioural Theory of Economic Development

Abstract

Abstract This book is motivated by a belief that theories of economic development can move beyond the generally known factors and mechanisms of such development. It establishes a behavioural theory of economic development illustrating that differences in human behaviour across cities and regions are a significant deep-rooted cause of uneven development. Fusing a range of concepts relating to culture, psychology, human agency, institutions, and power, it proposes that the uneven economic development and evolution of cities and regions within and across nations are strongly connected with the underlying forms of behaviour enacted by humans both individually and collectively. Integrating theoretical and empirical analysis, the book builds upon entrepreneurial and innovation theories of economic evolution to make sense of the cultural, psychological, and agentic components and elements of city and regional economic ecosystems that lead to long-term differentials in development. For social scientists with an interest in understanding the nature of uneven economic development, the book provides a novel theory of the role of human behaviour, psychocultural context, and institutions in the evolution and uneven development of cities and regions. This human behaviour is framed in the form of the ‘behavioural profile’ of cities and regions encompassing citizens in terms of their personalities, cultural histories, aspirations, and perceived opportunities, as well as their broader propensities to act in certain ways.