MGEC32H3 Chapter Notes - Chapter 6: Anthony Venables, Free-Trade Zone, Paul Krugman
16 Apr 2016
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Ch 6: on missing the boat: the marginalization of the bottom billion in the world. Explain why the countries in the bottom billion have missed the boat: 73% of the bottom billion have been through civil war. 29% are in countries dominated by the politics of natural resource revenues. 30% are landlocked, resource-scarce and in a bad neighborhood. 76% have been through a prolonged period of bad governance & economic policies. This happens with all traps when a country escapes a trap: o. And such transformations have implications for the landlocked ; those who are o o o neighbors are better off. This chapter focuses on what happens next o. Once a country escapes from a trap, it can start to catch up - grow and grow pretty fast. The countries that were initially the poorest have grown the fastest. Whereas the country that were the richest initially have grown slowly. Will they join the rush to convergence o.
