1 Chapter 3 Classic Theories of Economic Development.
Post on 22-Dec-2015
225 Views
Preview:
Transcript
1
Chapter 3
Classic Theories of Economic Development
2
Development as Growth and the Linear-Stages Theories Rostow’s stages of growth The Harrod-Domar growth model Obstacles and constraints Some criticisms of the stages model
3
sYS
KI
(3.1)
(3.2)
YkK (3.3)
IS (3.4)
The Harrod-Domar Model
4
The Harrod-Domar Model
IKYksYS (3.5)
YksY (3.6)
k
s
Y
Y
(3.7)
5
Structural-Change Models
The Lewis theory
6
Figure 3.1
7
Figure 3.2
8
Structural-Change Models
The Lewis theory Structural change and patterns of
development Conclusions and implications
9
The International-Dependence Revolution The neoclassical dependence model The false-paradigm model The dualistic-development thesis Conclusions and implications
10
The Neoclassical Counterrevolution Challenging the statist model
Free market approach Public choice approach Market-friendly approach
Traditional neoclassical growth theory Conclusions and implications
11
Theories of Development: Reconciling the Differences Development economics has no universally
accepted paradigm Insights and understandings are continually
evolving Each theory has some strengths and some
weaknesses
12
Concepts for Review
Autarky Average product Capital-labor ratio Capital-output ratio Capital stock Center Closed economy Comprador groups
Dependence Dominance Dualism Endogenous growth False-paradigm model Free market Free-market analysis
13
Concepts for Review (cont’d)
Harrod-Domar growth model
Lewis two-sector model Marginal product Market-friendly
approach Necessary condition
Neoclassical counterrevolution
Neocolonial dependence model
New institutionalism New political economy
approach Open economy
14
Concepts for Review (cont’d)
Patterns-of-development analysis
Periphery Production function Public choice theory Savings ratio Self-sustaining growth
Solow neoclassical growth model
Stages-of-growth model of development
Structural-change theory
Structural transformation
Sufficient condition
15
Concepts for Review (cont’d)
Surplus labor Traditional neoclassical
growth theory Underdevelopment
16
Figure A3.1
17
Figure A3.2
top related