Economics%20116%20-%20Lecture%203%20-%20Final

Economics%20116%20-%20Lecture%203%20-%20Final - Economics...

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Economics 116: Economic Development UC San Diego, Spring 2009 Prof. Karthik Muralidharan Department of Economics Lecture 3
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Administrative Stuff Waiting lists Lecture was up on the course web page this morning at 7am (will always be up by 9am) Problem Set 1 – Part A is up on the web page Second part will be up by Friday All solutions will be up by Monday 4 copies of the textbook were put on reserve Midterm – in class on 16 April
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Lecture Outline (4/7/09) Demographic Transition Structural Transformation Historical Perspective (Introduction) Lewis Model of Growth
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Population Growth Rates One major difference between low and high HDI countries that you cannot predict just based on their HDI scores is that: The population growth rates are much higher in less developing countries (LDCs) Reflects an incomplete demographic transition
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Demographic Transition The demographic transition is the move that societies make from high fertility and mortality rates to low fertility and mortality rates Median average birth rates in 1995 – 2000 for low HDI countries was 43.1 (per 1000 adults) but only 12.5 (per 1000 adults) in high HDI countries But the median average death rates were 17.8 and 8.6 respectively So, what is the average population growth rate in low and high HDI countries?
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Demographic Transition Thus population growth rates are higher in LDCs because death rates have dropped to near the DC rates but birth rates have not The demographic transition starts with a reduction in mortality rates, which is then followed by a reduction in fertility rates The intermediate period when fertility is much higher than mortality is typically a baby boom Why have death rates dropped? Mostly due to improvements in sanitation and public health and a corresponding reduction in mass outbreaks of diseases Also, improved nutrition and infant care has reduced infant mortality significantly (biggest source of high death rates)
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Demographic Transition Graph
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Lecture Outline (4/7/09) Demographic Transition Structural Transformation Historical Perspective (Introduction) Lewis Model of Growth
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Sectoral Composition of Workforce Second major difference is that there is a much higher proportion of the labor force employed in agriculture in LDC’s
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