# Tag Info

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In economics, it is accepted that countries with good 'inclusive' institutions, such as strong property rights, are more productive and able to develop faster (or even develop at all) than countries with bad 'extractive' institutions, such as forced labor (see Acemoglu 2008, Acemoglu & Robinson 2000a, 2000b, 2001, 2006, 2008; Olson 1984, Bates 1981, 1983,...

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Purchasing new homes would count as an investment. According to Blanchard et al. Macroeconomics: a European Perspective pp 568 in glossary investment is defined: Investment (I): Purchases of new houses and apartments by people, and purchases of new capital good (machines and plants) by firms. The source above is the leading undergraduate macroeconomics ...

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This is a common area of study in Development Economics. There is for example the Dual-sector model, first developed in 1954. It is very well explained in the link provided, but basically: [the] agricultural sector is typically characterized by low wages, an abundance of labour, and low productivity through a labour-intensive production process. In contrast,...

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A good starting point which should be accessible to people at all levels is the book "Guns, Germs, and Steel" by Jared Diamond. I believe this is one of the first and main seminal works in this area. That being said, it is not settled science that geography (alone) can doom a country's economy.

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Thanks to densp for identifying this paper. It refers to a major pilot project undertaken in Namibia Background: The Basic Income Grant (BIG) pilot project took place in the Otjivero-Omitara area, about 100 kilometres east of Windhoek. All residents below the age of 60 years receive a Basic Income Grant of N$100 per person per month, without any ... 7 You have a model $$(1)\ y = x \beta + e,$$ where$x$is endogenous$\mathbb E[xe] \not =0$. This is the structural model in the sense that the parameter you are interested in is$\beta$interpreted by its appearance in (1). In your case y is civil conflict onset x economic growth suggesting that you are interested in examining how economic growth affects ... 6 A schematic picture is as follows: Industrialization also means industrialization of Agriculture. This kills land-related jobs in the sector while at the same time it increases output. Inceased output requires preservation since it can't be immediately consumed as fresh product. So jobs are created in the "packaging" business-end of Agriculture, which ... 6 The reason why you cant find any sources on this is that you seem to be confused about what development economics and those different schools of economics are. I will first address the confusion and then give you references for some of the sources you requested. Confusion about different terms: First, development economics is a positive not normative field. ... 5 The recent development of many "developing countries" and "emerging markets" does not mean that Western colonial powers did not exploit them in the past. Emerging economies owe their modern GDP growth to cheap labor, as (former) Western colonial powers switched their (expensive) manufacturing bases to countries like China, India, etc. In the past, they were ... 5 A very good paper that I had in my MA curriculum is Jaychandran and Pande, AER 2017: https://www.aeaweb.org/articles?id=10.1257/aer.20151282 (I believe this paper has open access, maybe on one of the authors' websites). Working through this paper should help you understand DID quite thoroughly. The paper also employs double and even triple DID. 4 They worked at home. Like "Household Engineers" do today, doing everything working from down to dusk like their husbands, and like their husband they shared in the earnings of the household. Until the industrial revolution came each household operated like a mini business. It was the Industrial revolution that divided "work"(e.g. business) from home. ... 4 To complement @rocinante answer the argument described in the question silently assumes that growth can happen only if you steal from somebody. So if the past colonies cannot steal from anybody, they are bound not to ameliorate their material welfare. Assume two persons,$A$and$B\$, that currently have the same unexploited resources. It so happens that in ...

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This does depend on whether you're looking to do applied econometric work, in which case statistics is definitely the way to go or something theoretical, in which case a good understanding in the maths you listed will go a long way. Of course it's always better if you understand both - since you're doing a master's in math, you should already be quite fluent ...

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Aside from the economic arguments, a big difference was the amount of autonomy for the workers. Consider agriculture and similar rural employment (as servants etc) in the UK, even as recently as 1900. The status of agricultural workers in society was little changed from a medieval serf. They lived in housing provided by their employer. Their employer ...

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Just because a country has a lot of resources (including human capital), it does not necessarily form a path for a developed nation. China is also very involved in military conflicts. It just takes one war for a country to drift back decades. Also, you can't ignore the brain drain problem. With that, "developed" nation is a fluid definition. What does that ...

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As mentioned by @BBKing, "Guns, Germs, and Steel" by Jared Diamond is a great book. Another interesting one is "Why Nations Fails" by Daron Acemoglu and James A. Robinson. They argue that geography is insufficient in explaining the political and economic success or failure of states. They support their thesis by comparing country case studies. They ...

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All country classifications are conventions, which depend on the rule used by the particular institution. There is no hard (ontological) rule on any classification. There is no even consensus on the definition of categories. Advanced/rich/developed/industrialized economies are sometimes used interchangeably, but who is in each of them depend on who is ...

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I have to say I do not believe in simple all encompassing answers. The reasons behind the differences are probably complex and multitude, varying from country to country. Below are some answers that one runs into and I think these probably account for a share of the inequality. The book Why Nations Fail deals with the first question extensively. It is a ...

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A good reference is the Barro-Lee Dataset wich gives educational attainment for 146 countries from 1960 to 2010. The data are disaggregated by sex and by 5-year age intervals. Their estimates of educational attainment provide a reasonable proxy for the stock of human capital. An older reference is hosted by the World Bank. In case you need more recent data,...

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One thing such funds get spent on is corruption: Do Public Fund Windfalls Increase Corruption? Evidence from a Natural Disaster (Nikolova and Marinov (2015)) We show that unexpected financial windfalls increase corruption in local government. Our analysis uses a unique data set on flood-related transfers, and the associated spending infringements, ...

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There surely is research about the complement(s) of the (low tech) "primitive businesses", i.e. the high-tech and/or innovative businesses. The US CES for instance publishes a BDS-HT (Business Dynamics Statistics - High Tech) report. You can compare these with the core BDS data and get an idea how the high-tech sector differs. The US CES method of ...

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This is actually heavily studied question in development economics. Here are some common answers: Lack of secure property rights in developing countries. More substantial loans require collateral, in many developing countries especially in rural areas people don’t have deeds of ownership for their houses or farms. Even when they have access to some deed the ...

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This is actually quite complex issue. Taken narrowly answer to your question: what is the relationship between population growth and economic growth Is that simply the relationship is positive. This is because in the question you ask only about growth of GDP per se. Growth ultimately depends on growth of production and labor is an important input in the ...

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By the way, after a house is built (whether it was built this year or many years ago) it does provide economic value. If renters live there, then the rent they pay is counted as a service in GDP. And if the home owners live there then the same thing happens, the government estimates the 'imputed rent' and that is counted in GDP.

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As you point out, going by the typical doctrine of extractive institutions from Why Nations Fail (Acemoglu), we have this basic framework: Disenfranchisement of private sector leads to capital flight / brain drain If long-lasted, this leads to slower economic growth and potentially a failed state However, I think we may want more granularity here. A ...

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Are you looking for general references on Diff-in-Diff (DiD) and Regression Discontinuity (RD)? If yes, a good starting reference at the undergraduate level is probably J. Angrist and J.S. Pischke, Mastering' Metrics: The Path from Cause to Effect, Princeton University Press, 2014. Look at chapters 4 and 5 for RD and DiD. If who want to dig deeper: ...

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Yes, there is some evidence that immoral behavior, as exemplified though political corruption, is bad for economic development. The body of literature is large and to the extent that I am familiar with it, some corruption can "grease the wheels" and hasten development. In general, massive amounts of corruption is seen as a serious hinderence to development. ...

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I've read Eric Reinerts book and I do not think it is conspiracy theory because he explains also the economic background of the both symptoms you show. One point he describes is how free trade discussion prefers the developed countries. Industrial production profits a lot more from scale effects than agricultural production. So he says, it is not fair to ...

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Thee are several issues including what happens about incomes that are not wages, but the main one is Not everybody earns a wage This is an issue for the self-employed (especially in agricultural subsistence economies), but it is also an issue in economies with large numbers of dependants, especially the very young or the very old It also raises the ...

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