Summary and Synthesis for

Topic 4
Economic Theories of the State, Constitutions and
Economic Performance
Gabon, Roselyn P.
MAED-SocSci
1st Sem

This Module 4 discussed the Economic Theories of the State, Constitutions and
Economic Performance for additional references of the students in Graduate Studies.
The Topics objectives are 2.1. Synthesize the economic theories of the state. 2.2
Examines international trade and globalization and the prohibitions sometimes placed
on it. 2.3. Explain how dependency theory affects the development of the Philippine
economy.

An economic theory is focus on economies function, they keep track of benefits and
costs. Economists study theories and techniques useful for developing policies in
government as they have a deep understanding of how to create efficiency in today's
world. Economists will look at risks and benefits on people, the job market and society
as a whole when advising how to allocate resources. Theories includes the Public
Goods of the economies. Public goods are commodities or services that benefit all
members of society, and which are often provided for free through public taxation.
Liu (2009) indicates that increase in social public goods such as education, sanitation
and health care could improve people's living condition, increase future expectations,
encourage consumption and further stimulate economic development because the
nature of public spending has transformed from economic construction.

International trade has an important share in GDP in different countries. The

important of Globalization in International Trade is pushed us to create better systems
to track international trade. Technology helps us to be efficient in global trade by
reducing cost and time. The production processes became more efficient because of
technology.

Dependency theory takes off from the fundamental premises of the theory of
imperialism. and traces the roots of backwardness and underdevelopment to our
country's increasing integration. into the vicious circuit of foreign capital, technology
and markets.

Trade is essential for keeping a competitive global economy and lowers the prices of
goods internationally as it spurs innovation and encourages markets to become
specialised. Trade is very important in our economy it helps to improve our
government in terms local and international economic aspects. There are five
important of trade increased trade spells more jobs, higher earnings, better products,
less inflation, and cooperation over confrontation.