ECON 102 Lecture Notes - Lecture 6: Deng Xiaoping, Diminishing Returns, High Standard Manufacturing Company
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10% surge in economy on average per year since 1978. 1978 reformist leader deng xiaoping announces open door policy. 1984 opens up 14 cities & 3 regions to foreign investment. 1990 stock markets open in shanghai and shenzhen. 2005 600 million lifted out of poverty since 1981 (according to world bank) 2010 china overtakes japan as second largest economy. Productivity: the quantity of goods and services produced from each hour of a worker"s time. Growth in productivity is the key determinant of growth in living standards. For a country to enjoy a high standard of living, it must produce a large number of goods and services. Physical capital per worker - the stock of equipment and structures that are used to produce goods and services. Human capital per worker - the knowledge and skills that workers acquire through education, training, and experience.
