ECO 1102 Lecture Notes - Lecture 7: Candu Reactor, Thomas Robert Malthus

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Najib Khan

Document Summary

Political instability is a threat to property rights. When revolutions are common, there is a doubt that property rights will be respected in the future. There is less incentive to save by nationals, and foreigners have less incentive to invest. Countries with an efficient court system, honest government officials, and a stable constitution will typically enjoy a higher standard of living. Most economists today will say that a poor country is better off pursuing outward-oriented (as opposed to inward-oriented) policies that integrate these countries into the world economy. Countries that eliminate trade restrictions often experienced the same kind of economic growth that would occur after a major technological advance. Trade volume is not only determined by government policy but also by geography. One of the major reasons why living standards are so much higher today than they were a century ago is because state-of-the-art technological knowledge has progressed so much.