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Economic Development Lecture 1 Introduction
Dr. Gale L. Pooley, Ph.D. Email: gpooley@byuh.edu Phone: 675-3587 Office: HGB 226 Office Hours: Monday and Wednesday 8:00am to 11:00am or by appointment
Why are some countries so rich and other so poor?
Course Textbook Economics of Development 7th Ed. Perkins
Angus Maddison
20161 AD $2 $100 $30 World 15x Northern Europe North America 50x 1820
1820 2016 Change Population 1 billion 7.5 billion 7.5 x Life Expectancy 26 years 72 years 46 + Income Per Capita Per Day $2 $30 15 x
Globalization
Globalization Trading with anybody anywhere anytime
Globalization Trading with anybody anywhere anytime
Hans Rosling gapminder.org
First World Second World Third World
Third World North vs. South Developed vs. Developing Less Developed Country LDC
Least-developed countries Emerging economies Industrialized countries
Gross National Product GNP = Gross National Income GNI
Gross National Income GNI Gross National Income Per Capita GNI per Capita
GNI % Low <$1,000 12% Lower-Middle $1,000 - $4,000 36% Upper- Middle $4,000 - $12,500 54% High > $12,500 16% World $9,000
Purchasing Power Parity PPP
Purchasing Power Parity PPP Adjusting to local prices and incomes
Purchasing Power Parity PPP I have less money but things cost less So I have the same purchasing power
Economic Growth Economic Development
Average or Mean Total ÷ N Median or Middle Center
$0 ÷ 10 = 0 Average = 0 Median = 0
Average $100 billion ÷ 10 = $10 billion each $100 billion Median $0, $0, $0, $0, $0, $0, $0, $0, $0, $100 billion, $0
Average does not say anything about distribution
You can have Economic Growth But not Economic Development
You must have Economic Growth If you want Economic Development
Economic Development GNI Life Expectancy Education Choices
As things get cheaper People get richer Buy more with same income
Theories Empirical
Observe Why Test Think TheoriesEmpirical
Test Theories with Empirical Evidence Need both

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