ECON 313 Lecture 20: Econ 313 All Models Ever

• School: McGill University
• Department: Economics
• Course: ECON 313
• Professor: Eesha Sen Choudhury

Document Summary

Rosto(cid:449)"s tages of g(cid:396)o(cid:449)th: t(cid:396)aditio(cid:374)al o(cid:272)iet(cid:455): (cid:272)ha(cid:396)a(cid:272)te(cid:396)ized (cid:271)(cid:455) su(cid:271)siste(cid:374)(cid:272)e fa(cid:396)(cid:373)i(cid:374)g a(cid:374)d al(cid:373)ost (cid:449)holl(cid:455) a (cid:862)p(cid:396)i(cid:373)a(cid:396)(cid:455)(cid:863) se(cid:272)to(cid:396) economy, with limited technology. It is a rigid society, in which individuals lack economic mobility, and stability is seen as good and change is seen negatively: pre-conditions for take-off: economic change initiated by external demand for raw materials. Subsistence farming turns into commercial agriculture and cash crops. Enhanced investments lead to changes in environment to expand production, along with increasing spread of new technologies. Individuals are beginning to gain social mobility, and there is a development of national identity and shared economic interest: take-off: i(cid:374)(cid:272)(cid:396)ease of u(cid:396)(cid:271)a(cid:374)izatio(cid:374) a(cid:374)d ad(cid:448)a(cid:374)(cid:272)e(cid:373)e(cid:374)t of i(cid:374)dust(cid:396)ializatio(cid:374). The (cid:862)se(cid:272)o(cid:374)da(cid:396)(cid:455)(cid:863) (cid:894)goods producing) sector expands, and the economy shifts towards secondary sectors. Textiles and apparel a(cid:396)e usuall(cid:455) the fi(cid:396)st (cid:862)take off(cid:863) i(cid:374)dust(cid:396)(cid:455), as happe(cid:374)ed i(cid:374) g(cid:396)eat b(cid:396)itai(cid:374)"s i(cid:374)dust(cid:396)ial re(cid:448)olutio(cid:374): drive to maturity: diversification of industrial base, manufacturing shifts from investment-driven (capital goods) to consumer durables.