TITLE : ECONOMIC DEVELOPMENT. 3RD ED.

 
 
Preface xiii
 
 
Chapter 1 Development and Measurement 1
 
What Is Economic Development?
Is Economic Development Desirable? 2
Growth and Development: A Contrast in Terms	3
What Do We Call a Poor Country? 4
Characteristics of Less Developed, Low-Income Countries	5
The Measurement of Economic Development	6
Measuring National Income	11
International Comparisons	14
The Data 15
Summary 18
Further Reading 18
 
 
Chapter 2 Methodological Approaches to Development	20
 
Development and Economic Development 20
Economic Development as a Problem of Markets	22
Sociocultural Conditions as a Determinant of Economic Development	23
The Individual and Social Environment	25
Family Structure 26
Class Structure 27
Racial and Ethnic Diversity		28
Religion 29
Rural-Urban Differences	30
Size of the Social Unit 31
The Need for Achievement		34
Institutions and Culture 35
Traditionalism 36
The Implausibility of One-Way Causation	37
Summary 37
Further Reading 37
 
 
Chapter 3 Theories of Economic Growth	39
 
Introduction 39
Elementary Considerations 40
The Ricardian Growth Model 41
Digression on Demand and Supply	44
The Harrod-Domar Model 45
Class Structure and Savings 49
The Neoclassical Model of Growth	51
Heterogeneous Capital Goods 54
Fixity and Flexibility in the Composition of Capital Stock	55
The Kaldor Model 56
Optimal Economic Growth 56
Growth Models and Empirical Verification	58
More Complex Models 61
Why Study Growth Models? 61
Further Reading 62
 
 
Chapter 4 Land and Other Natural Resources		63
 
Introduction 63
Land and Food 64
Land and Industrial Raw Materials 67
Land as a Communication Network 72
Land and Responses to Incentive Systems	74
Land and Capital 76
Land and Technology 77
Summary 78
Further Reading	78
 
 
Chapter 5 Physical Capital	79
 
The Role of Capital 79
The Capital/Output Ratio	82
Other Investment Criteria	87
Sources of Capital 89
Channels of Investment	93
Capital: The Key to Development?	95
Summary 95
Further Reading 96
 
 
Chapter 6 Labor and Human Capital	97
 
Introduction 97
Homogeneous Labor? 97
Labor Force and Industrialization	101
Human Capital Formation 102
Calculating Human Resource Requirements	104
The Brain Drain 105
Labor Unions and Development	106
Summary 108
Further Reading 108
 
 
Chapter 7 Organization 110
 
Organization's Role in Economic Development	110
The Nature of Organization	112
Private Business Enterprise	115
Banks 117
Central Government 119
State Corporations 120
Other Participatory-lnterest Groups	125
Armed Forces 126
Corruption 127
Summary 128
Further Reading 128
 
 
Chapter 8 Technology, Technological Change, and Transfer of
          Technology 129
 
The Process of Technical Change 129
Invention and Innovation 132
Imitation 134
Demand-increasing and Cost-reducing Innovation	135
Technical Change in Developed Countries 137
Historical Dissemination of Technology 140
Current Diffusion of New Technology	141
"Intermediate " Technology	143
Summary 145
Further Reading 146
 
 
Chapter 9 Scale 147
 
Economies of Scale	147
The Size of the Market	151
Growth of Markets 152
The Change in Character of Markets	155
Markets and Money 156
Impact of Market Growth on Entrepreneurs, Labor, and Capital
   Formation 157
Blocks to Development in Market Economies	159
Physical Distribution and Development	160
Summary 161
Further Reading 161
 
 
Chapter 10 Structural Change 162
 
Introduction 162
Economics of the Input-Output Method	163
Sectoral Composition of the Labor Force	164
Economic Development with Unlimited Supplies of Labor	170
Other Sequences 172
Barriers to Structural Change	173
Composition of Final Output	175
Other Structural Changes 175
Summary 177
Further Reading 177
 
 
Chapter 11 Theories of Economic Development	179
 
Neoclassical Theories of Economic Development	180
Radical and Marxist Theories of Economic Development	182
Structuralist Theories of Economic Development	185
Summary 187
Further Reading 187
 
 
Chapter 12 Economic Policy and the Market System	190
 
Introduction 190
Role of Government in the Mixed Economy  191
Perfect Competition and Government Policy  192
Benefit-Cost Analysis 194
Project Evaluation as a "Second Best" 199
Summary 200
Further Reading	200
 
 
Chapter 13 Choosing Sectoral Priorities 202
 
Linkages, Elasticities, and Leading Sectors	203
Balance in Agriculture and Industry 204
Sectoral Balance in History 207
Functions of Agriculture in Development	209
The Farm Firm and Agricultural Policies	210
Land Tenure and Land Reform 212
Green Revolution 214
Technological Dualism and the Choice of Technique	215
Summary 217
Further Reading 218
 
 
Chapter 14 Monetary and Fiscal Policies  220
 
Monetary Control Mechanisms 221
Inflation as a Growth-promoting Strategy  222
Drawbacks of Inflation 223
Monetary versus Structural Inflation	224
A Political Theory of Inflation 227
Deficit Financing Without Inflation	228
Prices and Monetary Policy in China	230
The Limits of Internationally Independent Monetary Policy	230
General Issues in Fiscal Policy 231
Summary 235
Further Reading 236
 
 
Chapter 15 Rapid Population Growth	237
 
The Demographic Transition 238
Changes in Age Distribution 240
The "New Home Economics" 244
International Migration 245
Population Density and "New Lands"	246
Ideology and Fertility Control 248
Positive Economic Effects from Population Growth	249
Development or Fertility Decline? 250
Summary 251
Further Reading 251
 
 
Chapter 16 Urbanization and Urban Economic Development	253
 
Demographic Aspects of Urbanization 258
Economic Results of Urbanization	261
Urbanization and Unemployment	262
Urbanization Policies 264
Summary 266
Further Reading	266
 
 
Chapter 17 Import Substitution and Export Promotion	268
 
The Case for Comparative Advantage 269
The Opposition to Comparative Advantage 270
Export-led Development 278
Import Substitution as a Development Strategy	280
Balanced Development through Foreign Trade	285
Which Model? 286
International Commercial Policy	288
Summary 291
Further Reading 292
 
 
Chapter 18 International Transfers	293
 
The Two-Gap Model 296
The Debt Service Problem 298
Concessional Elements 299
Project Aid and Fungibility 301
Agricultural Commodities and Counterpart Funds	302
Tied Aid 304
Foreign Aid and the Long-Term Growth Rate 305
Sharing the Aid Burden 305
Automatic Transfers 306
Methods to Increase the Size of International Transfers	309
Summary 309
Further Reading 310
 
 
Chapter 19 Foreign Investment and International Firms	312
 
Direct Investment and International Flows 314
Value-Added Criterion 315
Economics of Expropriation 316
Transfer of Technology by International Firms	318
Labor and Foreign Investment 318
Control of International Firms 320
The Future of Privately Owned Productive Assets		322
Summary 323
Further Reading 324
 
 
Chapter 20 International Collective Action	325
 
Regional Trade Blocs 326
International Commodity Cartels 329
UNCTAD Proposals for Collective International Action	333
A New International Economic Order 335
Summary 336
Further Reading	337
 
 
Chapter 21 Employment and Income Distribution 338
 
Measurement of Employment and Unemployment 339
Underemployment and Disguised Unemployment as Surplus Labor  342
Employment Absorption 343
Income Inequality 347
Conflicts between Economic Equality and Economic Development
Summary 353
Further Reading 353
 
 
Chapter 22 Planning tor Development	355
 
Projection, Plan, and Forecast 356
Economic Planning and Economic Goals	357
Planning Models 359
Political Problems in Planning  360
Planning and Individual Decisions  362
Shortcomings of Planning 363
Plan-as-Product; Plan-as-Process  366
Summary 367
Further Reading 368
 
 
Chapter 23 A Few Conclusions  369
 
Chinese Economic Development  369
Limits to Growth	372
Strategic Factors in Economic Development		376
Summary 378
Further Reading 378
 
 
Bibliographic Note on Periodical Sources	380
 
Indexes 383
  Name Index
  Subject Index