Exam 3: Theories of Development Economics

Japan's development in the early twentieth century was named the "flying geese formation," as a metaphor that promoted the idea that other Asian economies would follow the Japanese economic model.

Elinor Ostrom rejected the state versus market duality and argued that people can create self-governing institutions to manage common resources.

The Industrial Revolution accelerated the production of manufactured goods due to the development of _____________.

Walt W. Rostow's take-off stage included which of the following characteristics:

Samuel Huntington believed that rapid economic growth would to political stability and strong states.

Is a singular policy for economic growth and development successful in various regions and economies? Explain why or why not.

By the 1970s, it was clear that state-led capitalism for economic development was only partially successful world-wide. This was because of the _____________.

What socio-political events influenced the creation of modernization theories?

As a practice, neoliberalism was challenged in the 1980s and 1990s by the success of ______________.

Neoliberalism (or laissez-faire economics) is characterised by __________________.

During the traditional stage of development, Western countries offered developing nations foreign aid and bank loans to _____________.

In the immediate aftermath of the Industrial Revolution, subsistence farmers were forced off their lands because _________________.

The new institutional economics (NIE) is an alternative theory to Keynesian and neo-liberal economics and posits that the state can and should have some role to play in steering market conditions.

Albert Hirschman's concept of "linkages" was the idea that ____________________.

Hans Singer and Raul Prebisch showed that an imbalance of trade between developing and developed countries led to declining national income due to ___________________.

Define and describe the economic thought of new institutional economics (NIE).

Walt W. Rostow, an American economist, proposed a five-stage model for economic development. This model did not include____________.

The idea that as gross domestic product (GDP) per capita grows, the amount people dedicate to buying agricultural goods, oil, and minerals decreases as a percentage of their total expenditure even if it grows in absolute terms is known as income volatility.

Neo-liberal economists believed that Keynesian economics failed because foreign aid and loans had only increased indebtedness, produced infrastructure that was not truly needed, and created inefficient industries that could only survive foreign competition due to protectionism.

Until the mid-1700s most people lived in cities.