week 2 day 1 - LECTURE OUTLINES INDICATORS FOR ASSESSING...

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LECTURE OUTLINES INDICATORS FOR ASSESSING GLOBALIZATION Click here to read Growth After the Crisis (See Figure 1 on p.34, Figure 4 on page 37, and Figure 5 on page 38). Japan, South Korea, and China were the growth champions during the three sub- periods 1950-1973, 1973- 1990, and 1990-2005, respectively, with annual per- capita growth rates between 6 to 8 percent. The economic growth of all three countries was based on the development of industrial capabilities, rather than on specializing according to their (static) comparative advantages. The general lesson from these high-growth countries is that is the need to have rapid structural transformation from low-productivity (“traditional”) to high-productivity (“modern”) activities. In other words, poor countries become rich by producing what rich countries produce. What is correlated with high economic growth? Rapidly growing countries are more likely to be net exporters of capital than net importers (and this is true even when aid flows, which tend to go disproportionately to the worse-off countries,
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week 2 day 1 - LECTURE OUTLINES INDICATORS FOR ASSESSING...

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