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Economics, Institutions, and Development: A Global Perspective
Economics, Institutions, and Development: A Global Perspective
Development: A Global
Perspective
Introduction to Development
Economics
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Principles and Concepts:
Economic Development
What is the real meaning of
development?
How can one apply economic concepts
and theories to gain a better
understanding of development process?
Why do some countries develop and
others remain poor?
What are the sources of development and
how do we measure development?
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Principles and Concepts:
Economic Development
Does historical record of development
help us understand it better?
What are the most influential theories of
development and are they compatible?
Is development process of developing
nations independent or interdependent
with that of developed nations?
The sunbelt, located in the U.S. South and parts of the Southwest, is in upward
transition according to the core-periphery model
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Principles and Concepts:
Economic Development
Examples of an affluent economy and
subsistence economy.
Nature of development economics:
Traditional economics- efficient
allocation of scarce resources
Political economics- social and
political process
Development economics- Role of
values, attitudes, and institutions
Money left after all necessary bills have 5
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Comparison of GNP
GNP Per Capita (US $)
experiences
A basic industry is one in which most of the
goods or services produced are exported out
of the geographical region
Economic factors of development
capital
Labor
Natural resources
technology
established markets (labour, financial, goods)
Non-economic factors (institutional, social,
values)
attitudes toward life and work
public and private structures
cultural traditions
systems of land tenure, property rights
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integrity of government agencies
Definition of Economic Development:
Medium HD:
Turkey 0.735 -21
High HD:
Canada 0.936 +3 18
Human Development Index
Initiated in 1990 and undertaken by
UNDP in its annual series of HDRs.
HDI is based on 3 goals:
Longevity
Knowledge
Standard of living
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