Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

3 - Development > Regional perspectives - China > Flashcards

Regional perspectives - China Flashcards

1
Q

What has Chinas GDP and GDPpc journey been like
and poverty

A
  • greatest economic and political powers in medieval period
  • their economic growth started late
  • have had a huge increase in GDP
  • not caught up in terms of GDPpc
  • eliminated poverty by 2015
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what is Chinas gov like

A

communist regime
without full democratic representation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

historically how was china an economic leader

A
  • led the world in technology (gun powder)
  • urbanisation = good proxy for economic development
  • high level of state capacity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what is the great divergence

A
  • China was historically a leader
  • but then 1700-1800 they fall behind
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the California School view
Pomeranz (2000)

similar assumption

A
  • China and europe were very similar 1600-1900
  • the divergence only seen because of the British industrial revolution
  • due to britain having better access to coal and colonies
  • China and europe = similar factors of production, economic conditions, levels of development
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what are the 3 main points opposing the California school

A

C and E never started at similar levels
1. living standards
2. institutions
3. integrated markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what were the claimed similarities between E and C

what was the difference

A

agricultural productivity
transport
institutions
innovation

Europe = better place to extract coal, access to cheap coal, access to cheap materials from colonies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

why was coal important for growth in europe

A
  • areas of europe that had better access to coal develop more early on compared to those that dont
  • associated with growth and urbanisation
  • coal = helped industrial revolution
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

but why did china not catch up when technology developed beyond coal

A

could have used oil, gas, water
- other resources available to fuel chinese growth that wasnt used
- so maybe coal was not big factor

  • coal would have played a historic role but not anymore
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

opposition to california school - GDP

A
  • GDPpc between leading regions were never the same
  • E always been higher than C except for 1100
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

opposition to california school - market integration

A
  • market integration highest across English markets
  • more integrated than C markets
  • measured by how different prices are across places within the same region
  • grain price convergence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

opposition to california school - living standards

A
  • big gap in wealfare between C and E
  • all european cities have higher real wages compared to Beijing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

opposition to california school - institutions

A

China
* lower state capacity
* lower state revenue
* didnt have growth friendly institutions

  • land tax officiers = extract more rent from people
  • reduces revenue, collusion and corroption, landownders being over taxed
  • reverse incentives to innovate and increase agricultural productivity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what are policies introduced by Mao

A
  1. central planning - develop industrial sector
  2. FP/MP - stabilize inflation
  3. reconstruction effects
  4. exporpriation of elite
  5. land reform - redistribute land
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

how did Mao fail

A
  • during Mao period 1949-1978 = growth stagnated
  • unsuccessful policies
  • unsuccessful in government led industrialisation
  • after Mao = saw growth
  • didnt increase productivity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

how did Mao succeed

A
  • maybe created a basis for fast growth after 1978

-improvements to education and health care evidence, expansion of industrial sector

17
Q

why did Mao fail to see increase in economic growth and productivity

A
  • suceeded in accumulating factors of production - moving K and L from agriculture to manufacturing
  • but no imporvement in efficiency in which factors were used
  • limited TFP growth
  • unsuccessful structural transformation - needs TFP growth
18
Q

what was the reason behind the failed structural transformation

A

extractive economic institutions = not growth friendly
* limits to private profit - price controls
* corruption and fear
* policies that restrict labour mobility - can take advantage of productivity gains

19
Q

what was the great leap forward

A

objective = facilitate industrialisation by forcibly moving L from agriculture to industry and shifting K

  • result = huge famine
  • no increase in producivity in agriculture/industrial sector
20
Q

what were the bad policies behind the great leap forward

A
  1. full collectivisation of agricultural produce - no incentive to increase productivity - all given to state to redistribute
  2. no labour mobility - without permission
  3. production quotas, price controls - couldnt sell produce on market
  4. enforced by army
  5. pressure on local admins to meet production quota - means they would lie
  6. extensive margin growth = no gains to GDPpc (low wages + high prices)
21
Q

what happened with great famine
stats

A
  • shifted labour
  • drop in A production
  • increase in mortality
  • fertility rates lowered
  • drop in growth rates
22
Q

can we plausibly say that Mao helped education and health care - prerequists for growth

A
  • no because they were already on an upward trend before Mao
  • but Mao didnt prevent this growth
23
Q

why did GDPpc stagnate in Mao era

A
  • low nominal wages = no growth in productivity
  • high prices = inefficient
24
Q

what are the 3 post mao policies that generated producivity gains

A
  1. end of price control
  2. openness to trade
  3. SEZ
25
Q

post Mao - end of price controls

A
  • profit maximising innovation
  • incentive to be more efficient
  • people can sell on market at fair prices
26
Q

post Mao - openness to trade

A
  • advantages from export-led growth
  • attribute from Mao period = low labour costs - attracted FDI
  • reduced tariffs
27
Q

post Mao - special economic zones

A
  • 0 barriers to trade
  • tax incentives for FRDI
28
Q

what are the 3 direct policies aimed to provide better incentives

  • reforms to preexisting communist institutions
A
  1. household responsibility system
  2. contract management responsibility
  3. township and village enterprise
29
Q

household responsbility system

A
  • land assigned for 15 years, sell gov a quota of produce at fixed price, sell rest for own profit
  • introduce market incentives
  • reform of collective farming - cause of famine
  • increased agricultural output - was stagnant before
30
Q

post mao improvements to proximate causes of growth
- what were they and what were the improvements

A
  1. savings and investment
    - saving schemes = higher life expectancy = solow model
    - state banks channel investments to manufacturing
  2. education and health
    - HC and K productivity
  3. structural transformation
    - move L from low to high productivity sectors - increases TFP
    - economies of scale = reduced MC, positive spillovers
31
Q

what are some of chinas downfalls today in terms of polcies

A
  1. one child policy - old population now
  2. private activity under control of CG
    - can limit profits
  3. SEZ created spatial inequality

3 - Development (16 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions