Question

What is the relationship between political economy and economic progress? This question has been the subject of a vigorous debate among academics and policymakers for some time.

APA Format/ 1 to 2 pages response, double space

Answer 1

Political economy refers to the development of institutions in different economic systems adopting different forms of economic policies and plans. In this way, political economy gives direction to economic growth.

Market economy, for example, provides freedom and impetus for growth and innovation. Therefore, in a market-based political economy, economic performance will grow rapidly and there will be no government intervention.

Similarly, a democratic political economy provides a favorable environment for economic growth and progress. The opposite of reality is dictatorship. A strong legal environment attracts companies and foreign investment that gives confidence to the economy. It acts as a catalyst for growth.
Political economy, when not being used as a synonym for the economy, can be a lot of different things. From the point of view of the study, the term may refer to Marxian economics, adopting a public choice approach derived from the Chicago and Virginia schools. Generally speaking, "political economy" can refer to advice given by a government or public economist on a common economic policy or specific economic proposal made by a political scientist. The fast-growing literature is expanding beyond the economic policy paradigm, in which planners make the most of individual representations to study how political forces influence economic policy choices, especially in relation to distributed conflicts and Political institutions. It is offered as an independent field of study at several colleges and universities.