Development indicators Gianni Vaggi University of Pavia September 2013 On the causes of economic growth.

Development indicators  

Gianni VaggiUniversity of Pavia September 2013

On the causes of economic growth

US employment, major sectors

GDP by sector in East South AfricaSource: Schoening 2007. Data from African Development Bank, Selected Statistics on African Countries 2007

0% 20% 40% 60% 80% 100%

East South Africa

Zimbabwe

Zambia

Uganda

Sudan

Seychelles

Rwanda

Mauritius

Malawi

Madagascar

Kenya

Ethiopia

Eritrea

Djibouti

Comoros

Burundi

Share of GDP

Agriculture Industry without Manufacturing Manufacturing Services

1960

1961

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0

5

10

15

20

25

30

35

40

45

50

Gross fixed capital formation (% of GDP)

BRA

RUS

IND

CHN

SAF

EAS

Primary Completion Rate, total (% relevant age group)

30

40

50

60

70

80

90

100

110

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

East Asia & Pacific (all income levels)

Europe & Central Asia (all income levels)

Latin America & Caribbean (all incomelevels)

Middle East & North Africa (all incomelevels)

North America

Sub-Saharan Africa (all income levels)

South Asia

Patent Application, residents

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

East Asia & Pacific (all income levels)

Europe & Central Asia (all income levels)

Latin America & Caribbean (all incomelevels)

Sub-Saharan Africa (all income levels)

North America

Sub-Saharan Africa (all income levels)Patent applications, residents

South Asia

GDP Growth rates

-30

-20

-10

0

10

20

30

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

China

Korea, Rep.

Mexico

Brazil

South Africa

Vietnam

Malaysia

Gross Fixed Capital Formation (%GDP)

0

10

20

30

40

50

60

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

China

Korea, Rep.

Mexico

Brazil

South Africa

Vietnam

Malaysia

Manufacture, valued added (constant LCU)

0

5E+13

1E+14

1,5E+14

2E+14

2,5E+14

3E+14

3,5E+14

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

China

Korea, Rep.

Mexico

Brazil

South Africa

Vietnam

Malaysia

BRICS Capital accumulation

The Asian Miracle•World Bank 1993

•UNCTAD Trade and Development Report 1996, 1997, 

•Robert Wade Governing the market, 1990

The Flying Geese Model (AKamatsu 1958)

The engine for growth-1

The role of the governments:– Policies ensuring macroeconomic stability– Government and financial markets– Policies promoting equality(education, land reform)

The engine for growth-2

•The profit-saving-investmenet nexus

•Industrial policies (promoting accumulation of physical and human capital)

•activities (altering the allocation  of resources) Export promotion-SEZ