lec_4_110B - Economics110B WorldEconomic HistoryII

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    Economics 110B  World Economic  History II Spring 2009 University of California, Davis Lecture 4: The First Great Wave of  Globalization—International Trade
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    Today’s Program A Wrap up on Economic Growth and the examples we have  seen International Trade from a Theoretical Perspective International Trade from an Historical Perspective: The rise,  fall and rise of trade Tariffs, trains and other trade costs Convergence: prices, wages, etc The Impact of Globalization
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    Readings Cameron and Neal Ch.12, pp, 290-299
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    Economic Development in India India doubled its growth rate in the 1980s, before it liberalized trade. The onset of growth does not require big re- forms Growth in India came under Rajiv Gandhi in early 80’s: his  government relaxed some industrial regulations, encouraged  some capital goods imports, and made the tax system more  sensible. But there were no big changes Good institutions matter - but they must suit the local context
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    Economic Development in India Why did India grow after 1981? India’s growth transition began in the early 1980s rather than  after the crisis of 1991. Cannot be explained by: Increased public spending or  Education or Reforms in Trade etc But by a  perception on the part of the private sector  that the  government’s attitude toward it had changed a large productivity response, a phenomenon helped by the  fact that India was far away from its income possibility  frontier.
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    Economic Growth in Comparative  Perspective Growth’s proximate  and ultimate causes: Inputs like capital, land, human capital… Deeper determinants including technological changes,  institutions, culture
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    Economic Growth in Comparative  Perspective The Industrial revolution in  Great Britain  was gradual: not a  revolution. -It was based on cumulative technological, cultural, and  institutional changes Other countries had good “initial conditions” for instance in  Japan and Germany USA’s  factor endowments mattered: large scale production and  technological innovation  India had poor initial conditions  Disease, high density, low productivity, and a malevolent 
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This note was uploaded on 11/08/2010 for the course ECN 110B 110B taught by Professor Wilson during the Winter '10 term at UC Davis.

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lec_4_110B - Economics110B WorldEconomic HistoryII

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