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Unformatted text preview: 1.Nurkse and Lewis commonalities: Bad on export of agricultural goods, want reinvestment in domestic market 2.Ideas that developmental economists tended to share: there is one answer: a development strategy, following a recipe. About less developed countries, catching up.all see a strong role for government, macro development policies (big push), domestic development, some role of competition 3.Virtuous circles: government infrastructure investment->private investment->GDP increase->taxes Vicious circle: export a lot of agricultural goods when prices for agricultural goods are falling. To get the same amount as before need to export more agricultural goods, which prevents industrialization 7. Lewis meaning about exporting agriculture/surplus.w=mpl=standard. Surplus:w is greater than MPL. Capital produces more capital. Land does not produce more land. Distribution of a fixed pie in feudalism. In capitalism, its not a fixed pie. To understand economics, we need capitalism, to understand capitalism, we need economics. capitalism, to understand capitalism, we need economics....
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- Fall '08