Malthusian Theory of Population Growth
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Questions and Answers

What is the main goal of Malthusian theory?

  • To highlight the impact of cultural values on economic performance
  • To test a transition in population density in 1500 (correct)
  • To demonstrate the role of institutions in development
  • To argue that geographic factors affect economic development

    • Ashraf and Galor (2011a) argue that geographic factors did not influence economic development after the introduction of agriculture.

    False

    What drove the spread of agriculture (the Neolithic transition) according to Ashraf and Galor?

    Geographic conditions (climate, continental size and orientation) and biogeographic conditions (the availability of domesticable plant and big mammal species).

    The availability of prehistoric domesticable wild plant and animal species did not influence population density in the past two millennia other than through the timing of the _______ transition.

    <p>Neolithic</p> Signup and view all the answers

    Match the following factors with their role in development:

    <p>Geographic conditions = Drove the spread of agriculture Biogeographic conditions = Did not influence population density Institutions = Not mentioned in this context Cultural values = Not mentioned in this context</p> Signup and view all the answers

    What do Ashraf and Galor use as instruments to estimate the effect of the timing of the Neolithic transition on population density?

    <p>Data set from Olsson and Hibbs (2005)</p> Signup and view all the answers

    Per capita income gains from technological improvements in the preindustrial era were largely retained in the long run.

    <p>False</p> Signup and view all the answers

    What is the legacy of geography in the context of Ashraf and Galor's research?

    <p>The impact of geographic conditions and biogeographic conditions on the timing of the agricultural transition and subsequent economic development.</p> Signup and view all the answers

    What is the primary focus of the new empirical work in economic growth and development?

    <p>Measurement and estimation of the effects of historical variables on contemporary income</p> Signup and view all the answers

    Historical variables have no impact on contemporary income.

    <p>False</p> Signup and view all the answers

    What is the quote attributed to Winston Churchill in the context of economic development?

    <p>&quot;The further backward you look, the further forward you can see.&quot;</p> Signup and view all the answers

    According to the article, economic development is affected by traits that have been transmitted across generations over the very long run, through _______ and _______ channels.

    <p>biological and cultural</p> Signup and view all the answers

    Match the following concepts with their corresponding categories:

    <p>Accumulation of factors of production = Proximate determinants Exogenous technological progress = Proximate determinants Historical variables = Long-term historical factors Cultural values = Cultural values and economic performance</p> Signup and view all the answers

    The article suggests that historical variables have only a direct impact on productivity.

    <p>False</p> Signup and view all the answers

    What is the JEL code for the category related to 'Demographic Economics' in the article?

    <p>J11</p> Signup and view all the answers

    What is the primary issue discussed in the article regarding the impact of historically transmitted traits on economic development?

    <p>Whether historically transmitted traits have affected development through their direct impact on productivity, or have operated indirectly as barriers to the diffusion of productivity-enhancing innovations across populations.</p> Signup and view all the answers

    What is the correlation between biogeographic variables and population density in 1500, according to Olsson and Hibbs (2005)?

    <p>Strongly correlated</p> Signup and view all the answers

    The effect of latitude on population density in pre-industrial times is positive.

    <p>False</p> Signup and view all the answers

    What is the only way biogeographic variables matter for economic performance in pre-industrial times, according to the text?

    <p>through their effect on the timing of the adoption of agriculture</p> Signup and view all the answers

    The IV effect of biogeographic variables on population density in 1500 is quantitatively _______ than the OLS estimate.

    <p>larger</p> Signup and view all the answers

    What is the relationship between absolute latitude and contemporary income per capita, according to Ashraf and Galor (2011a)?

    <p>Positive</p> Signup and view all the answers

    The effects of geographic factors on development are direct.

    <p>False</p> Signup and view all the answers

    Match the following concepts with their corresponding descriptions:

    <p>Biogeographic variables = Strongly correlated with population density in 1500 Neolithic transition = Instrument for the timing of the adoption of agriculture OLS = Type of regression analysis IV = Type of regression analysis that provides a quantitatively larger effect</p> Signup and view all the answers

    A one-standard deviation increase in years since the agricultural transition has a ________ effect on population density in 1500.

    <p>strong, statistically significant positive</p> Signup and view all the answers

    What is a limitation of current development research?

    <p>Inadequate incorporation of qualitative research methods</p> Signup and view all the answers

    Foreign aid has been shown to consistently improve political rights in recipient countries.

    <p>False</p> Signup and view all the answers

    What is the title of the book by Michael B. Anderson that explores the relationship between aid and peace?

    <p>Do No Harm: How Aid Can Support Peace – Or War</p> Signup and view all the answers

    According to Andersson, Karadja, and Prawitz (2017), mass migration can lead to ______________________ innovation.

    <p>cheap labor</p> Signup and view all the answers

    Match the following authors with their research topics:

    <p>Acosta and Cox = U.S. tariff code Ashraf, Bau, Nunn, and Voena = Bride price and female education Alesina and Dollar = Who gives aid to whom and why Anderson = Aid and peace</p> Signup and view all the answers

    Humanitarianism has played a significant role in shaping economic growth and development.

    <p>True</p> Signup and view all the answers

    What is the primary focus of the new empirical work in economic growth and development?

    <p>Incorporating historical variables and local context</p> Signup and view all the answers

    What is a key factor in making research more inclusive?

    <p>Collaboration with local researchers</p> Signup and view all the answers

    What is the main obstacle for international business relations between Ethiopia and the rest of the world?

    <p>Visa restrictions</p> Signup and view all the answers

    Very small travel costs have a significant impact on business travel, capital flows, and economic growth.

    <p>True</p> Signup and view all the answers

    What was the outcome of the public outcry against Nike, Adidas, and Reebok in the 1990s?

    <p>Changes in production and labor standards in their factories</p> Signup and view all the answers

    Visa restrictions are estimated to reduce the aggregate welfare of the most-affected countries by as much as __________%.

    <p>5</p> Signup and view all the answers

    Match the following outcomes with the corresponding strategies to combat global poverty:

    <p>Relaxing visa restrictions = Boosting international business relations and economic growth Using consumer purchasing power = Improving labor standards in factories</p> Signup and view all the answers

    What is a key factor that affects international trade and economic growth?

    <p>All of the above</p> Signup and view all the answers

    Relaxing visa restrictions can lead to increased trade flows and economic growth.

    <p>True</p> Signup and view all the answers

    What is the impact of visa restrictions on trade flows, according to Umana-Dajud (2019)?

    <p>A significant negative impact</p> Signup and view all the answers

    What is the topic of the research paper by Johnson (2014)?

    <p>Development projects and civil conflict</p> Signup and view all the answers

    Fair trade certification has a significant impact on the economic growth of coffee producers in Costa Rica.

    <p>True</p> Signup and view all the answers

    What is the title of the monitoring report by Fairtrade International in 2018?

    <p>Monitoring the scope and benefits of fairtrade</p> Signup and view all the answers

    The study by Hainmueller, Hiscox, and Sequeira (2015) examine consumer demand for ______________________ in a multistore field experiment.

    <p>fair trade</p> Signup and view all the answers

    Which of the following authors argue that geographic factors did not influence economic development after the introduction of agriculture?

    <p>Ashraf and Galor</p> Signup and view all the answers

    US military aid has a positive impact on political conflict in Colombia.

    <p>False</p> Signup and view all the answers

    What is the topic of the research paper by Dufluo (2001)?

    <p>Schooling and labor market consequences of school construction in Indonesia</p> Signup and view all the answers

    Match the following authors with their research topics:

    <p>Johnson = Development projects and civil conflict Dragusanu and Nunn = Fair trade certification Hainmueller, Hiscox, and Sequeira = Consumer demand for fair trade Dube and Naidu = US military aid and political conflict in Colombia</p> Signup and view all the answers

    What is the interval for the year 2000 in the graph?

    <p>[-.0025, .0025]</p> Signup and view all the answers

    The graph shows a negative correlation between the year and the interval.

    <p>False</p> Signup and view all the answers

    What is the interval for the year 2010 in the graph?

    <p>[.0025, .0035]</p> Signup and view all the answers

    The graph shows the interval for the year 1990 as __________.

    <p>[-.0055, -.0045]</p> Signup and view all the answers

    Match the following years with their corresponding intervals:

    <p>1990 = [-.0055, -.0045] 2000 = [-.0025, .0025] 2010 = [.0025, .0035]</p> Signup and view all the answers

    What is the primary focus of the new empirical work in economic growth and development?

    <p>Long-run effects of geographic, historical, and cultural factors on productivity and income per capita</p> Signup and view all the answers

    Historical variables have no impact on contemporary income.

    <p>False</p> Signup and view all the answers

    What are the three key findings from the research by Spolaore and Wacziarg (2013)?

    <p>First, technology and productivity tend to be highly persistent. Second, the importance of controlling for populations' ancestry. Third, long-term genealogical links across populations play an important role in explaining the transmission of technological, institutional knowledge and the diffusion of economic development.</p> Signup and view all the answers

    The transmission of technological and institutional knowledge across populations is influenced by __________ and __________ channels.

    <p>genetic, cultural</p> Signup and view all the answers

    Match the following concepts with their corresponding categories:

    <p>Long-run effects of geographic factors = Economic Growth Models Inclusive analysis = Structural Transformation Labor productivity = Conditional Convergence Causal impacts of interventions = Unconditional Convergence</p> Signup and view all the answers

    Local context is necessary for evaluating the effectiveness of policies.

    <p>True</p> Signup and view all the answers

    What is the term used to describe the dispersion in income/capita?

    <p>σ-convergence</p> Signup and view all the answers

    Unconditional Convergence implies that poorer countries with smaller capital stocks per worker grow faster than richer countries.

    <p>True</p> Signup and view all the answers

    What is the term used to describe the reversed economic growth characterized by some developing countries experiencing high growth rates, structural transformation, and unconditional convergence in labor productivity?

    <p>Unconditional Convergence</p> Signup and view all the answers

    Barro and Sala-i-Martin (1992) specify growth for an economy in period t (1960) and t+s (2019) as a function of ______________ and speed of unconditional convergence.

    <p>income</p> Signup and view all the answers

    Match the following concepts with their corresponding descriptions:

    <p>Unconditional Convergence = Poorer countries with smaller capital stocks per worker grow faster than richer countries. Structural Transformation = High growth rate, structural transformation, and unconditional convergence in labor productivity. σ-convergence = Dispersion in income/capita. Neoclassical growth model = Implies that poorer countries with smaller capital stocks per worker grow faster than richer countries.</p> Signup and view all the answers

    What is the aim of explaining the reversed economic growth characterized by unconditional convergence?

    <p>To explain the reversed economic growth characterized by unconditional convergence</p> Signup and view all the answers

    What is one of the policy options to reduce global poverty?

    <p>Greater labor mobility and migration</p> Signup and view all the answers

    True or False: The intervention is randomly implemented and rigorously evaluated, and if successful, it is scaled up and replicated elsewhere.

    <p>True</p> Signup and view all the answers

    What is the benefit of reducing labor restrictions and visa restrictions?

    <p>Large growth, income, and poverty reduction effects</p> Signup and view all the answers

    Certified products that improve the well-being of producers can increase the ______________________ of consumers in rich countries.

    <p>willingness to pay</p> Signup and view all the answers

    Match the following policy options with their corresponding effects:

    <p>Greater labor mobility and migration = Increase productivity and income Reducing consumer purchasing power = Decrease labor productivity Relaxing labor restrictions and visa restrictions = Large growth, income, and poverty reduction effects Increasing labor productivity = Improved economic growth</p> Signup and view all the answers

    True or False: Understanding local context is not crucial for development research.

    <p>False</p> Signup and view all the answers

    What is another strategy to combat global poverty?

    <p>The use of consumer purchasing power to change production and labor standards</p> Signup and view all the answers

    Study Notes

    The Impact of Geographic Conditions on Economic Development

    • The availability of domesticable plant and animal species in prehistoric times did not influence population density in the past two millennia, except through the timing of the Neolithic transition.
    • Geographic factors such as climate, continental size, and orientation drove the spread of agriculture (the Neolithic transition).
    • Biogeographic conditions, including the availability of domesticable plant and big mammal species, influenced the timing of the agricultural transition.

    The Legacy of Geography and Economic Development

    • The empirical literature on economic growth and development has shifted from studying proximate determinants to analyzing deeper, more fundamental factors rooted in long-term history.
    • A growing body of new empirical work focuses on the measurement and estimation of the effects of historical variables on contemporary income, taking into account the ancestral composition of current populations.
    • Economic development is affected by traits that have been transmitted across generations over the very long run, both biologically and culturally.

    The Role of Intergenerationally Transmitted Characteristics

    • Intergenerationally transmitted characteristics may impact economic development through their direct impact on productivity or indirectly as barriers to the diffusion of productivity-enhancing innovations across populations.
    • The timing of the Neolithic transition has a strong, statistically significant positive effect on population density in 1500, with a large magnitude of effect.
    • Biogeographic variables are strongly correlated with population density in 1500, but only matter for economic performance in pre-industrial times through their effect on the timing of the adoption of agriculture.

    The Importance of Historical Variables

    • Historical variables, such as the timing of the Neolithic transition, have a significant impact on contemporary income and economic development.
    • The effects of geographic factors on development have varied over different periods of technological development, highlighting the indirect nature of their influence.

    Visa Restrictions and Economic Development

    • Visa restrictions faced by Ethiopians who want to enter a foreign country are shown in Figure 4, with nearly every country requiring a visa to be obtained ahead of time.
    • Direct flights from Ethiopia are not available to countries that allow visa upon arrival, and transit countries require a visa beforehand, making travel very difficult for Ethiopians.
    • This affects international business relations between Ethiopia and the rest of the world, as small travel costs can have significant effects on business travel, capital flows, and economic growth.

    Impact of Visa Restrictions on Trade

    • Visa restrictions have a significant negative effect on trade flows, reducing the aggregate welfare of the most-affected countries by as much as 5%.

    Consumer Power and Global Poverty

    • Consumers have the power to affect change for the global poor through their purchasing decisions.
    • The public outcry in the 1990s against Nike, Adidas, and Reebok sourcing products from sweatshop factories led to changes in production and labor standards in their factories.
    • This had a positive impact on Indonesian workers, as documented by Harrison and Scorse (2010).

    Importance of Local Context in Development Research

    • Development research should incorporate qualitative research methods, such as interviews and focus groups, and collaborate with local researchers to better understand the local context.
    • This is crucial for developing effective development policies that take into account the local context.

    Time Periods and Corresponding Values

    • In the year 2010, the values range from .0015 to .0035.
    • Between 2000 and 2010, the values decrease, ranging from -.0005 to .0005.
    • In the year 2000, the values range from -.0015 to -.0035.
    • Between 1990 and 2000, the values decrease further, ranging from -.0045 to -.0055.

    Harmful Policies

    • West tariffs, antidumping duties, limits on international labor mobility, and tied aid for export promotion are detrimental policies that hinder economic growth and development.

    Economic Growth and Development

    • Geographic, historical, and cultural factors have a significant impact on productivity and income per capita in the long run.
    • Technology and productivity tend to be highly persistent over time.
    • Controlling for populations' ancestry is crucial, as long-term persistence holds at the level of populations rather than locations.
    • Long-term genealogical links across populations play a significant role in explaining the transmission of technological and institutional knowledge and the diffusion of economic development.

    Policy Options to Reduce Global Poverty

    • Greater labor mobility, migration, and technology and knowledge transfer can increase productivity and income, reducing global poverty.
    • Examples of successful labor mobility include Swedish migration to the US, African students studying and migrating to Canada, and Vietnamese migration to the USA and France.
    • Reducing labor restrictions and visa restrictions can have large growth, income, and poverty reduction effects.

    Academic Research Characteristics

    • Interventions are randomly implemented and rigorously evaluated to ensure effectiveness.
    • Significant fixed costs are associated with intervention and data collection.
    • Methods used are transportable and applicable in different countries.
    • Local context is crucial for development research, and understanding this context is necessary for the implementation of best practices.

    Consumer Purchasing Power

    • Consumer purchasing power can be used to change production and labor standards, increasing the minimum wage in factories.
    • Certified products that improve the well-being of producers can be sold at a higher price, appealing to consumers in rich countries.

    Convergence Clubs

    • Non-linearity in the growth process creates convergence clubs, where the dispersion in income per capita is called σ-convergence.
    • Unconditional convergence is characterized by reversed economic growth, where some developing countries experience high growth rates, structural transformation, and unconditional convergence in labor productivity.

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    Description

    This quiz is about Malthusian theory, which suggests that population growth cancels out technological advancements. It discusses the argument that population growth results in income gains being dissipated.

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