GEOG 1HB3 Lecture Notes - Lecture 7: Informal Sector, Purchasing Power Parity
3 Jan 2017
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Document Summary
The world is marked by striking spatial variations (haves and have nots) These variations exist at numerous spatial scales (global, regional, national, local) We refer to these variations in well being in terms of level of development; areas are considered along a continuum between more and less developed (checkpoints between most developed and least developed) Example: world bank- gni per capita by country ranked into. 1. it only measures economic activity in the formal economy and not the informal economy: up to 80% of all economic activity in some countries, variations within a country (internal inequality, differences in cost of living. An alternative: purchasing power parity (ppp): measures how much of a common market basket of goods and services each currency can purchase locally. Ppp lowers the relative gni in wealthy countries and raises them in the poor countries: this compresses the range of incomes. Even with such compression, economic prosperity remains unevenly distributed across nations: recall: core-periphery relationship.
