The theory of economic development is a branch of economic dynamics. Any discussion of the theory must involve dynamics even though not all dynamic problems are necessarily related to economic development. The theory's primary locus is upon the nice paths of economic variables. Stationary states, which have been the main concern of modem economic development theory, are actually special cases of economic dynamics. In this study, we propose an economic development theory within the framework of input-output systems and neoclassical economics. No political problems will be dealt with, although this does not mean that questions such as why Japan had a higher growth rate than China in the past are not important. Similarly, rather than dealing with the psychological and institutional aspects of in economic development processes we only suggest ways (or methods, as Hicks would call them) for analyzing what determines economic development from the point of view of "pure" economics. Our main contribution to economic growth theory is that we investigate various nonlinear dynamic phenomena such as bifurcations and economic cycles. We emphasize that oscillations and structural changes are not rare but universal in a progressive economy. No economic system can be stabilized forever if change is permitted.

Table of Contents:
I. The Economic Development Problem.- 1. Economic Development.- 2. A General Historical Sketch of Growth Theory.- 3. Development Indicators.- 4. Short Term versus Long Term.- 5. Fast Variable versus Slow Variable.- 6. Equilibrium versus Non-equilibrium.- 7. Stability versus Instability.- II. Growth Theory Revised — From Quantitative Aspect.- 1. The Neoclassical Approach to Growth.- 2. The One Sector Model of Technological Changes Within the Framework of the Neoclassical Approach.- 3. A Growth Model With Exhaustible Resources and Endogenous Population.- 4. Distribution of Income and Wealth in the Neoclassical One Sector Growth Model.- 5. The Two Sector Models.- 6. Multiple Sector Models — The extended neoclassical model.- 7. Production Functions in Growth Models.- III. A Revision of Real and Monetary Dynamic Models.- 1. Money in Economic Theory.- 2. The One Sector Model With Money Within the Framework of the Neoclassical Approach.- 3. On the Generalized Tobin Model.- IV. Prices, Growth Rates and Interest Rates in the Dynamic Context of Multisector Models.- 1. Introduction.- 2. The Input-Output System With Neoclassical Production Functions.- 3. The Existence of Short-Run Equilibria With Endogenous Interest Rate.- 4. The Existence of Equilibrium for a Fixed Interest Rate.- 5. The Interest Rate and Investment Coefficient Matrix.- 6. The Relations Between Growth, Interest and Inflation Rates in the von Neumann Dynamic Model — An extended concept of balanced growth.- V. Growth Rate Controlled and Economic Dynamics in a Multisector Model.- 1. Introduction.- 2. Economic Dynamics With Maximization of Welfare.- 3. Economic Cycles in the Case of One Sector.- 4. Properties of the Multiple Sector Model.- 5. Stabilization With Growth Rate Adjustment.- 6. Further Interpretationsof the Dynamic System.- 7. Conclusions.- VI. The Choice of Techniques.- 1. The Choice of Techniques in a Simple Growth Model.- 2. The Basic Model of Leontief Technology and Some of Its Fundamental Properties With One Technique.- 3. The Model of Leontief Technology With Many Alternative Techniques.- 4. Dynamic Behavior of the Model With Many Alternative Techniques.- 5. The Impossibility of Reswitching in the Continuous Substitution Model.- VII. Technological Policy and Economic Development — A Neoclassical Approach.- 1. Technological Change in Economic Development.- 2. The Model.- 3. Equilibrium and Stability.- 4. The Effects of Changes in Some Parameters.- 5. Effects of Changes in the Population Growth Rate in the Case of Instability.- 6. Conclusions.- VIII. Technological Policy and Economic Development — Multisector Approach.- 1. The Basic Model.- 2. Some Properties of the Basic System.- 3. Technological Change of “Learning by Doing”.- 4. Technological Change due to Investment in Training.- 5. A Growth Model of “Hybrid” Technological Change.- 6. Some Comments.- IX. Conclusion and Prospects for Further Research.- 1. Summary.- 2. How To Close Dynamic Models — The neoclassical, neo-Marxian and neo-Keynesian approaches.- Appendix. Nonlinear Dynamic System Theory.- A.1. Ordinary Differential Equations and Existence of Solutions.- A.2. Stability.- A.3. Linearization Principle and Its Valid Domain.- A.4. Limit Cycles in Two Dimension — The Poincaré-Bendixson theory.- A.5. Bifurcations.- A.6. Limit Cycles — The Hopf bifurcation theorem.- A.7. Maps.- A.8. Chaos.- A.9. The Logistic Map — An example of chaos.- References.