ECON 162 Lecture Notes - Lecture 1: Transition Economy, Emerging Markets, Sweatshop
26 Dec 2018
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Document Summary
Is a sweatshop -- not for long. Doesn"t respect ipr -- they will eventually. Is the smokestack of the world -- 30% of china"s pollution produces exports. Sells us too much stuff -- 50% of exports are from us companies. Rapid pace of economic growth, with problems (inequality, sustainability) Evidence of success: very rapid growth in production and rapid improvement in living standards. Gdp = c + i + g + (x-m) Evidence on the perception of ordinary people gallup polls. It has gone up from 5 yrs ago 3. 5 6. 5. On the corruption perception index china falls in the middle. Tremendous changes in individual economic choice but not a western model of individualism. Not moving in the direction of democracy. Political rights and civil rights index, international comparison (freedom house) Legal system still differentiates the state from the people (rule by law rather than rule of law) Regression of institutional quality on per capita income in transition economies.
