Developing regions table 29 share of the population

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Developing Regions
Table 2.9 Share of the Population Employed in the Agricultural, Industrial, and Service Sectors in Selected Countries, 2004–2008 (%)
Table 2.10 Share of the Population Employed in the Agricultural, Industrial, and Service Sectors in Selected Countries, 1990–92 and 2008–2011 (%)
2.5 How Low-Income Countries Trying to Launch Accelerated Growth Today Differ from Developed Countries in Their Earlier Stages: Eight Relatively Widespread Differences:1.Physical and human resource endowments2.Per capita incomes and levels of GDP in relation to the rest of the world3. Climate4.Population size, distribution, and growth5.Historic role of international migration6.International trade benefits7.Basic scientific/technological research and development capabilities8.Efficacy of domestic institutions
2.6 Are Living Standards Converging across Countries?Post-Great Divergence: Two reasons to think (re-)convergence likelyDiminishing returns to capital (though as economies develop they often find ways to compensate) Diffusion of ideas across countries, so can skip trial and error and grow fast while catching upRelated to the concept of “advantages of backwardness” (Alexander Gerschenkron), aka “the latecomer’s advantage” But - at least until this century - evidence of unconditional national average income convergence has been unconvincing Evidence of divergence between middle and low income countriesEvidence of “per capita income convergence,” weighting changes in per capita income by population size(Later, we consider the concept of conditional convergence when we study the Solow model)
Figure 2.7 Relative Country Convergence: World, Developing Countries, and OECD (continued)
Figure 2.7 Relative Country Convergence: World, Developing Countries, and OECD
Figure 2.8 Growth Convergence versus Absolute Income Convergence
Figure 2.9 Country Size, Initial Income Level, and Economic Growth
2.7 Long-Run Causes of Comparative DevelopmentSchematic RepresentationGeographyInstitutional quality- colonial and post-colonialColonial legacy- pre colonial comparative advantageEvolution and timing of European developmentInequality- human capital Type of colonial regime
Nature and Role of Economic InstitutionsInstitutions provide “rules of the game” of economic lifeFramework of Nobel Laureate Douglass NorthProvide underpinning of a market economyInclude property rights; contract enforcementCan work for improving coordination, Restricting coercive, fraudulent and anti-competitive behavior Providing access to opportunities for the broad population-Constraining the power of elites, and managing conflict Provision of social insurance Provision of predictable macroeconomic stability Note: These institutions are correlated and it is not clear which of these institutions matter most; and “transitional institutions” may help in the development process
Nature and Role of Economic Institutions: Some CommentsThe institutions on the previous slide are correlated

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