Chapter2_Flashcards
(31 cards)
What is the focus of comparative economic development?
Understanding disparities in income, health, and institutions between countries.
What are the main indicators of development?
GNI, HDI, and poverty line (rate)s.
Define GNI.
Gross National Income; total economic output including income from abroad.
What does HDI measure?
Health, education, and income combined.
What is the global poverty line?
$1.90/day for extreme poverty, $3.80/day for broader poverty.
What are LICs, LMCs, and UMCs?
Low-income, lower-middle-income, upper-middle-income countries.
What is the GNI per capita range for LICs?
Less than $1,026.
What is the GNI per capita range for UMCs?
$3,996–$12,235.
What is a Gini Coefficient?
A measure of income inequality: 0 = perfect equality, 1 = perfect inequality.
What is conditional convergence?
The hypothesis that poor nations grow faster if they have good institutions and policies.
Why do tropical regions face economic challenges?
Disease, poor soil, and high temperatures hinder productivity.
How does colonialism affect modern economies?
Left extractive institutions and infrastructure focused on exports.
What are inclusive institutions?
Institutions that promote participation and equality, driving growth.
Name two key factors limiting economic convergence.
Weak governance and lack of investment in human capital.
What role does urbanization play in development?
Creates job opportunities but strains infrastructure.
What is the role of health in economic development?
Healthy populations are more productive, reducing poverty.
How does education contribute to growth?
Builds human capital, improves productivity, and reduces inequality.
What are three barriers to development in LICs?
Corruption, weak institutions, and poor infrastructure.
What is the ‘Great Divergence’?
Rising economic disparities between nations since the 19th century.
What are the three components of HDI?
Life expectancy, education, and income.
How do high population growth rates affect development?
Strains resources, limits per capita income growth.
What is a potential exam question about institutions?
Discuss how inclusive institutions promote economic growth.
How does geography influence economic development?
Access to trade routes and resources impacts growth.
What is the impact of inequality on growth?
High inequality limits economic opportunities and slows development.
