Economic Growth and Development // Development as Modernization Flashcards
The importance of latitude and geographical isolation (tropical diseases and intense heat, significant volatility of rainfall, and landlocked areas have higher transportation cost)
Jeffrey Sachs
These are the key to understanding why some countries developed earlier than others
Douglass North
Factors of Production
Labor and Capital
Value of output minus value of input used in production
Value-Added
The contribution of each factor of production to output
Factor Productivity
output is multiplied by the same number as factors of production
constant returns to scale
Relative availability of factors of production
Factor Abundance
output is multiplied by more than 2 if L and C are multiplied by 2
increasing returns to scale
The relationship of the quantities of productive factors and the amount of product obtained
Production Function
output is multiplied by less than 2
decreasing returns to scale
tells us on average how much one worker contributes to national output given in a year
Average Labor Productivity
output increases/decreases caused by an additional ulit of L and C
Marginal Productivity
part of the output that L and C cannot explain thought to be the result of technological progress
Total Factor Productivity
assumes competetive markets and marginal product of capital, labor intensity increases wirh capital intensity, assumes constant returns to scale, and technology is exogenous
Robert Solow’s Growth Model
Growth is generated by endogenous technical change resulting from entreprenurial innovation, optimistic about the possibilities of economic growth and development, growth is boudless, economic incentives bring about technological change that reduces out the use of finite resources and transition to renewable resources
Paul Romer’s Endogenous Growth Model
Walt Rostow’s First Stage of Growth
Traditional Society
Walt Rostow’s Second Stage of Growth
Pre-conditions for take-off
Walt Rostow’s Third Stage of Growth
Take-off
Walt Rostow’s Fourth Stage of Growth
Drive to maturity
Walt Rostow’s Fifth Stage of Development
Age of high mass consumption
During modernization, development is derived from _________. It is a critique of economic actors and behaviors.
Sociology
Who created Positivism – empiricist philosophical theory that holds the knowledge is either true by definition of positive-meaning a posteriori facts derived by reason and logic from
Auguste Comte
Who created Social Darwinism – survival of the fittest and natural selection (evolution of societies)
Herbert Spencer
Who created Rationalism – Rationality, (Spirit of Capitalism), Work and wealth accumulation as God’s calling
Max Weber
Who created the Division of Labor – mechanical solidarity > division of labor > organic solidarity > social cohesion
Emile Durkheim
Under rationalism, it is a methodical orientation toward profit and competition
Disciplinary
a perceived duty to increase one’s wealth yet the avoidanxe of its enjoyment
Ascetic or self-denying
Under division of labor, laws of rehabilitation
Restitutive Laws
Under division of labor, laws of punishment
Repressive Laws
Who created Types of Societies?
Ferdinand Tonnies
Also known as community, these are groups based on family or neighborhood bonds that connotes feelings of togetherness
Gemeinschaft
Also known as society, these are groups sustained by instrumentsl goals
Gesellschaft
It is a theory where society is seen as an integrated whole, where all parts are interconnected, roles and behavior > social order
Structural Functionalism
Who created Synthesis
Talcott Parsons
social-functional imperative about behavioral organism adapted its fuctions to transform the external world
Adaptation
social-functional imperative about personality systems defined system goals (mobilize resources around _____)
Goal Attainment
social-functional imperative about social systemd integrated the acting units
Integration
social-functional imperative about cultural systems provided individuals with norms and values that motivated them
Latency
In this theory, development is an evolutionart process; new structures; continuous change; new goals
Sociological Modernization Theory
