Economic Development and Economic Catch-Up. Two different models of economic development. Agrarian Epoch . Economy engaging in agriculture with low degree of social division of labor. Per capita GDP lingering around subsistence level. Absolute poverty. Epoch of Modern Growth(Kuznets).
Two different models of economic development
230 270 9006,100
Table : Trend of world per capita GDP and population
In 1990 International Geary-Khamis Dollars
# Angus Maddison 2010
Trend of World Per Capita GDP - Graph
per capita income (in thousand)
US$30.- low growth rate
high growth rate
US$1.- no growth
0 agrarian transition post-industrial T
- CENTER : Group of industrialized countries
- PERIPHERY : Agrarian countries
Import Substituting Industrialization.
- Export-oriented growth of South Korea and Taiwan was successful, while import-substituting Latin America failed.
- Japan, South Korea, Taiwan, and Singapore were authoritarian, with tight regulations.
- Only colonial Hong Kong was liberal!
★Corruption (Rent-seeking) problem
(1) Protection of property right
(2) Enforcement of contract
(3) Fair dispute resolution mechanism.