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Historic Growth and Contemporary Development: Lessons and Controversies. Chapter 3. The Growth Game. Growth rates of national income are followed closely by policy-makers In order to better understand contemporary growth prospects, it is useful to examine historical growth patterns.
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Historic Growth and Contemporary Development: Lessons and Controversies Chapter 3
The Growth Game • Growth rates of national income are followed closely by policy-makers • In order to better understand contemporary growth prospects, it is useful to examine historical growth patterns
The Economics of Growth: Capital, Labor, and Technology • Capital accumulation • Population and labor force growth
Figure 3.1 Effect of Increases in Physical and Human Resources on the Production Possibility Frontier
Figure 3.2 Effect of Growth of Capital Stock and Land on the Production Possibility Frontier
The Economics of Growth: Capital, Labor, and Technology • Capital accumulation • Population and labor force growth • Technological progress
Figure 3.3 Effect of Technological Change in the Agricultural Sector on the Production Possibility Frontier
Figure 3.4 Effect of Technological Change in the Industrial Sector on the Production Possibility Frontier
High rates of per capita income and population growth High rates of total factor productivity increase The Historical Record: Kuznet’s Six Characteristics of Modern Economic Growth
Figure 3.5 Factor Accumulation Accounts for Only a Fraction of Growth
High rates of per capita income and population growth High rates of total factor productivity increase high rates of economic structural transformation High rates of social, political, and ideological transformation International economic outreach Limited international spread of economic growth The Historical Record: Kuznet’s Six Characteristics of Modern Economic Growth
Physical and human resource endowments Relative levels of per capita income and GNP Climatic differences Population size, distribution, and growth The historical role of international migration The Limited Value of the Historical Growth Experience: Differing Initial Conditions
Physical and human resource endowments Relative levels of per capita income and GNP Climatic differences Population size, distribution, and growth The historical role of international migration The growth stimulus of international trade Basic R&D capabilities Stability and flexibility of political and social institutions Are living standards converging? The Limited Value of the Historical Growth Experience: Differing Initial Conditions
Figure 3.6 Convergence among OECD Countries but Divergence in the World as a Whole
Figure 3.6 Convergence among OECD Countries but Divergence in the World as a Whole cont’d
Brain drain Capital accumulation Capital-augmenting technological progress Capital-saving technological progress Capital stock Dualism Economic growth Economic planning Equalization (economic and social) Free trade Human capital Infrastructure Concepts for Review
Labor-augmenting technological progress Labor-saving technological progress Modernization ideals Neutral technological progress Production possibility curve Rationality Research and Development (R&D) Technological progress Terms of trade Total factor productivity (TFP) Concepts for Review, cont’d
