Comparative

Economic
Development
2

10 important features of developing countries

1. Lower levels of living and productivity

2. Lower levels of human capital
3. Higher levels of inequality and absolute
poverty
4. Higher population growth rates
5. Greater social fractionalization
3 Per-Worker Labor Productivity Levels, 2000, 2010, and 2015
4
Total fertility rate, ASEAN Member States, 2001-2015
5

10 important features of developing countries

6. Larger rural populations but rapid rural-to-

urban migration
7. Lower levels of industrialization
8. Adverse geography
9. Underdeveloped financial and other markets
10. Lingering colonial impacts such as poor
institutions and often external dependence
6

National Migration Survey

Preferred destination of Filipino migrants:

CALABARZON (20.1%)
National Capital Region (17%)
Central Visayas (10.7%)
NCR and Calabarzon had the most immigrants in the past five
years
Source: Business World, January 30, 2020
7

National Migration Survey

Preferred destination of Filipino migrants:

CALABARZON –manufacturing hub

National Capital Region –financial hub

NCR and Calabarzon contribute 53% of total Philippine gross

domestic product (GDP)
Source: Business World, January 30, 2020
8

Defining the
Developing World
“
Low-income economies
• GNI per capita of $1,025 or less

Lower middle-income economies

• GNI per capita between $1,026 and
$3,995
“
Upper middle-income economies
• GNI per capita between $3,996 and
$12,375
High-income economies
• GNI per capita of $12,376 or more
 “ COUNTRY

Cambodia
Indonesia
Lao PDR
ASEAN GNI PER CAPITA, 2018
Brunei Darussalam
CATEGORY
High income
Lower middle income
Lower middle income
Lower middle income
GNI PER CAPITA (2018)
29,660.00

3,840.00
2,450.00
Malaysia Upper middle income 10,590.00
Myanmar Lower middle income 1,310.00
Philippines Lower middle income 3,830.00
Singapore High income 58,770.00
Thailand Upper middle income 6,610.00
Timor-Leste Lower middle income 1,820.00
Vietnam Lower middle income 2,360.00
 “
Selected Low and High Income Economies, 2018
Selected Low Income Economies
Niger Low income 390.00
Malawi Low income 360.00
Burundi Low income 280.00

Selected High Income Economies

Australia High income 53,230.00
Denmark High income 60,140.00
Iceland High income 67,960.00
North America High income 61,242.00
Japan High income 41,310.00
13

Indicators of Development

▸ Real Income

▹ GDP, GNI
▹ Purchasing Power Parity
14

Indicators of Development

▸ Indicators of Health and

Education
▹ Prevalence of Malnutrition
▹ Primary Completion Rate
▹ Under-5 Mortality Rate
15
Under-five mortality rate (per 1,000 live births), ASEAN total,
1985-2016
16

Life expectancy at birth (years), ASEAN total, 1980-2016

17

Life expectancy at birth (years), ASEAN Member States, 2017

18

Adult literacy rate (%), ASEAN Member States, Total, 2000-2016

19
Adult literacy rate (%), ASEAN Member States, Males
2000-2016
20
Adult literacy rate (%), ASEAN Member States, Females
2000-2016
21
Share of education expenditure to GDP (%) by ASEAN Member
States, 2001-2017
22
Health expenditure to GDP (%), ASEAN Member States, 2005-
2017
23

HDI,
AMS,
2000-
2017
24

HDI,
AMS,
2000-
2017
25

Holistic Measures of
Living Levels
and Capabilities
26

Human Development Index (HDI)

27

Steps to calculate the HDI

Step 1. Creating the dimension indices
Minimum and maximum values (goalposts) are set
28

Steps to calculate the HDI

Step 2. Aggregating the dimensional indices to
produce the Human Development Index

The HDI is the geometric mean of the three

dimensional indices
29

Calculate the (a) Health index, (b) Expected years

of schooling index, (c) Mean years of schooling
index, (d) Education index, (e) Income index and
(f) HDI
30
31
32

COUNTRY
PHILIPPINES
Life Expected Mean years GNI per
Expectancy years of of capita
at birth schooling schooling
71.1 12.7 9.4 9,540
33

How Low-Income Countries

Today Differ from Developed
Countries in Their Earlier
Stages
34

differences in initial conditions

▸ Physical and human ▸ Population size,

resource endowments distribution, and
▸ Per capita incomes growth
and levels of GDP in ▸ Historical role of
relation to the rest of international migration
the world ▸ International trade
▸ Climate benefits
35

differences in initial conditions

▸ Basic scientific and ▸ Efficacy of

technological domestic
research and institutions
development
capabilities
36

Are Living Standards of

Developing and Developed
Nations Converging?
37

Convergence vs Divergence
Reasons for catching up:
▸ Technology transfer

▸ Factor accumulation
38

THANKS!