Chapter 3 Flashcards
a theory states that the transition from underdevelopment to development cna be described in terms of a series of steps of stages through which all countries must proceed
Rostow’s Stages of Growth
american economic hsitorian who believes that countries must go through series of steps to develop
Walt R. Rostow
limited technology; static society
traditional society
development of manufacturing industry
take-off
development of wider industrial and commercial base
drive to maturity
exploitation of comparative advantages in international trade
high mass consumption
transition triggered by external influenc
preconditions for take-off
commercial exploitation of agriculture and extractive industry
precondition for take-off
installation of physical infrasttacture and emergence of social and political elite
take-off
investment in manufacturing exceeds 10% o fnational income; development of modern social, economic and political institutions
drive to maturity
exploitation of comparative advantages in international trade
high mass consumption
functional economic relationship in which the groeth rate of GDP depends directly on the national net savings rate and inversely on the national capital output ratio
Harrod-Domar Growth Model
theory of development in which surplus labor from the traditional agriculture sector is transferred to the modern industrial sector, the groeth of wich absorbs the surplus labor, promotes industrialization and stimulates sustained development
Lewis two-sector model
exogenous model of economic growth that analyzes changes in level of ouput in an economy over time as a result of changes in the population growth rate, the savings rate and the rate of technological process
Solow Growth Model
