{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Ec183_Lecture1

Ec183_Lecture1 - Lecture 1 Why Isnt the Whole World...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture 1: Why Isn’t the Whole World Developed? 1. 1870-today: Growth for all, but faster in the developed world (“rich get richer”). 2. How do we measure growth? Does more income mean we are better off? 3. 1500-today: Reversals of fortune? 20 th century growth for all… …but faster in the developed world
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
World Income Distribution (selected countries): 2003 0 5000 10000 15000 20000 25000 30000 USA Nor w ay Australia UK Japan G er ma ny B razi l C hina Egy pt Indi a 1990 dollars Source: Angus Maddison, World Population, GDP and Per Capita GDP, 1-2003 AD (2006) Income per capita World Income Distribution: 1870 0 5000 10000 15000 20000 25000 30000 US A Norway Au s trali a UK Jap an Germa n y B r a z il Chi na Eg ypt In dia 1990 dollars 1990 dollars Source: Angus Maddison, World Population, GDP and Per Capita GDP, 1-2003 AD (2006)
Background image of page 2
Comparing rich countries: 1870 vs. 1994 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 Australia UK USA Germany Norway Japan GDP relative to US 1870, US = 100 1994, US = 100 Source: Pritchett (1997), “Divergence, Big Time” Comparing rich to poor countries: 1870 vs. 1994 0 0.2 0.4 0.6 0.8 1 1.2 USA India China Brazil Egypt GDP relative to US 1870, US = 100 1994, US = 100 Source: Pritchett (1997), “Divergence, Big Time”
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Summing up the 20th century Most countries experienced substantial growth . Convergence (or narrowing gap) between developed countries. Divergence (or widening gap) between developed and developing world. But, are we picking winners? Compare Japan to Brazil in 1870… Other ways to express convergence graphically The US diverges from (widens the gap with) other leading countries after 1900. Other countries converge on (narrow the gap with) the US after 1960.
Background image of page 4
Does this graph show convergence?
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}