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    Economical Development Midterm Notes

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    Doug Conway
    The document provides an overview of key concepts in economic development, including: 1) Absolute poverty refers to an inability to meet basic needs like food, clothing, and shelter. Subsistence economies only produce enough for personal consumption of necessities. 2) Development aims to improve quality of life through raising living standards, self-esteem, and freedom. It is the transformation from economic stagnation to growth and poverty reduction. 3) Globalization is increasing integration into international markets. Development economics studies how economies transform from low to high income.

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    Economical Development Midterm Notes

    Uploaded by

    Doug Conway
    134 views3 pages
    The document provides an overview of key concepts in economic development, including: 1) Absolute poverty refers to an inability to meet basic needs like food, clothing, and shelter. Subsistence economies only produce enough for personal consumption of necessities. 2) Development aims to improve quality of life through raising living standards, self-esteem, and freedom. It is the transformation from economic stagnation to growth and poverty reduction. 3) Globalization is increasing integration into international markets. Development economics studies how economies transform from low to high income.

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    The document provides an overview of key concepts in economic development, including: 1) Absolute poverty refers to an inability to meet basic needs like food, clothing, and shelter. Subsistence economies only produce enough for personal consumption of necessities. 2) Development aims to improve quality of life through raising living standards, self-esteem, and freedom. It is the transformation from economic stagnation to growth and poverty reduction. 3) Globalization is increasing integration into international markets. Development economics studies how economies transform from low to high income.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    134 views3 pages

    Economical Development Midterm Notes

    Uploaded by

    Doug Conway
    The document provides an overview of key concepts in economic development, including: 1) Absolute poverty refers to an inability to meet basic needs like food, clothing, and shelter. Subsistence economies only produce enough for personal consumption of necessities. 2) Development aims to improve quality of life through raising living standards, self-esteem, and freedom. It is the transformation from economic stagnation to growth and poverty reduction. 3) Globalization is increasing integration into international markets. Development economics studies how economies transform from low to high income.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Economic Development midterm 1 Notes

    Chapter 1: Introducing Economic Development: A global Perspective

    Absolute poverty- A situation of being unable to meet the minimum levels of income, food, clothing.
    Healthcare, shelter, and other essentials

    Subsistence economy- An economy in which production is mainly for personal consumption and the
    standard of living yields little more than basic necessities of life-food, shelter, and clothing.

    Development- The process of improving the quality of all human lives and capabilities by raising people’s
    levels of living, self-esteem, and freedom.

    Traditional economics is an approach to economics that emphasizes utility, profit maximization, market
    efficiency, and determination of equilibrium

    Development Economics: The study of how economies are transformed from stagnation to growth and
    for low income to high income status and overcome problems of absolute poverty.

    Globalization: The increasing integration of national economies into expanding international markets

    Social System : The organizational and institutional structure of a society, including its values, attitudes,
    power structure, and traditions.

    Income per capita: Total GNI/Total Population

    Gross National Income: The total domestic and foreign output claimed by residents of a country. It
    comprises GDP plus factor incomes accruing to residents from abroad, less the income earned in the
    domestic economy accruing to persons abroad

    Development must include multidimensional process of improvements to social structures, popular


    attitudes, and national institutions as well as the acceleration of economic growth the reduction of
    inequality, and the eradication of poverty.

    Amartya Sen’s Capability Approach

    What people do or can do with the commodities of given characteristics that they come to possess or
    control.

    Sen’s Five sources of disparity


    1. Personal heterogrenities
    2. Environemental diversities
    3. Variations in social climate
    4. Distribution within the family
    5. Differences in relational perspecitive

    Sustenance
    Self -esteem
    Freedom

    Sector
    Tech sector
    Activity
    Trade and sphere

    How low income contires today differ from developed countries

    1. Phsyical and human resource endowments


    2. Per capia incomes and levels of GDP in relation to the rest of the world
    3. Climate
    4. Population size, distribution, and growth
    5. Historical role of international migration
    6. International trade benefits
    7. Basic scientific and technological research and development capabilities
    8. Efficacy of domestic institutions

    Terms of trade: The ratio of a country’s average export price to its average import price.

    Divergence a richer country pulls away in the economic competiton compared to the poor.

    Convergence a poorer country catches up in economic competiton compared to the rich


    Linear stages of growth model
    Theories and patterns of structural change
    International-dependence revolution
    Neoclassical free-market counterrevolution

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