theories of development: a comparative analysispkasturi/ch04.ppt · ppt file · web view ·...
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Chapter 4 Slide 1Copyright © 2003 Pearson Education, Inc.
Chapter 4 Slide 2Copyright © 2003 Pearson Education, Inc.
Classic Theories of Development: A Comparative Analysis
Chapter 4
Chapter 4 Slide 3Copyright © 2003 Pearson Education, Inc.
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
Chapter 4 Slide 4Copyright © 2003 Pearson Education, Inc.
The Harrod-Domar Model
sYS
KI
(4.1)
(4.2)
YkK (4.3)
IS (4.4)
Chapter 4 Slide 5Copyright © 2003 Pearson Education, Inc.
The Harrod-Domar Model
IKYksYS (4.5)
YksY (4.6)
ks
YY
(4.7)
Chapter 4 Slide 6Copyright © 2003 Pearson Education, Inc.
Structural-Change Models
The Lewis theory
Chapter 4 Slide 7Copyright © 2003 Pearson Education, Inc.
Figure 4.1 The Lewis Model of Modern-Sector
Growth in a Two-Sector
Surplus-Labor Economy
Chapter 4 Slide 8Copyright © 2003 Pearson Education, Inc.
Figure 4.2 The Lewis Model Modified by Laborsaving Capital Accumulation: Employment Implications
Chapter 4 Slide 9Copyright © 2003 Pearson Education, Inc.
Structural-Change Models
The Lewis theory Structural change and patterns of
development Conclusions and implications
Chapter 4 Slide 10Copyright © 2003 Pearson Education, Inc.
The International-Dependence Revolution The neoclassical dependence model The false-paradigm model The dualistic-development thesis Conclusions and implications
Chapter 4 Slide 11Copyright © 2003 Pearson Education, Inc.
The Neoclassical Counterrevolution Challenging the statist model
– Free market approach– Public choice approach– Market-friendly approach
Traditional neoclassical growth theory Conclusions and implications
Chapter 4 Slide 12Copyright © 2003 Pearson Education, Inc.
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
Chapter 4 Slide 13Copyright © 2003 Pearson Education, Inc.
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
Chapter 4 Slide 14Copyright © 2003 Pearson Education, Inc.
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
Chapter 4 Slide 15Copyright © 2003 Pearson Education, Inc.
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
Chapter 4 Slide 16Copyright © 2003 Pearson Education, Inc.
Concepts for Review, cont’d
Surplus labor Traditional
neoclassical growth theory
Underdevelopment