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Economic Growth in Developing Economies - Coggle Diagram
Economic Growth in Developing Economies
Economic Development: Sources & Strategies
Capital Formation
Vicious Circle of Poverty
poverty is self-perpetuating bcs poor nations are unable to save and invest enough
Capital Flight
human capital & financial capital leave developing countries to search for higher expected rates of returns elsewhere with less risk
Human Resources & Entrepreneurial Ability
Brain Drain
talented people from developing countries study in developed country & remain there after graduation
Infrastructure Capital
Social Overhead Capital
Basic infrastructure projects
Life in the Developing Nations: Population & Poverty
Global South
Developing nations in Asia, Africa & Latin America
Economic Superpowers
China
India
Strategies for Economic Development
The Movement from Agriculture to Industry
non-agricultural sector > agricultural sector (productivity of workers)
The Role of Government
issue laws to enforce contracts
protection of private property & intellectual property rights
establishment of accounting principles
Export or Import Substitution
Import
favours developing local industries that can manufacture goods to replace imports
Export
a trade policy to encourage exports
Microfinance
microfinance loans are much smaller, repayment begins very quickly and most loans are made to women
Development Interventions
Education Ideas
Health Improvements
Random & Natural Experiments
Random
intervention in a randomly selected subset of a sample then comparing outcomes from the exposed & control group
Natural
testing the outcome of an intervention is made as a result of an exogenous event outside the experiment itself & unrelated to it