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Questions and Answers
What is the main goal of Malthusian theory?
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.
Ashraf and Galor (2011a) argue that geographic factors did not influence economic development after the introduction of agriculture.
False (B)
What drove the spread of agriculture (the Neolithic transition) according to Ashraf and Galor?
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.
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.
Match the following factors with their role in development:
Match the following factors with their role in development:
What do Ashraf and Galor use as instruments to estimate the effect of the timing of the Neolithic transition on population density?
What do Ashraf and Galor use as instruments to estimate the effect of the timing of the Neolithic transition on population density?
Per capita income gains from technological improvements in the preindustrial era were largely retained in the long run.
Per capita income gains from technological improvements in the preindustrial era were largely retained in the long run.
What is the legacy of geography in the context of Ashraf and Galor's research?
What is the legacy of geography in the context of Ashraf and Galor's research?
What is the primary focus of the new empirical work in economic growth and development?
What is the primary focus of the new empirical work in economic growth and development?
Historical variables have no impact on contemporary income.
Historical variables have no impact on contemporary income.
What is the quote attributed to Winston Churchill in the context of economic development?
What is the quote attributed to Winston Churchill in the context of economic development?
According to the article, economic development is affected by traits that have been transmitted across generations over the very long run, through _______ and _______ channels.
According to the article, economic development is affected by traits that have been transmitted across generations over the very long run, through _______ and _______ channels.
Match the following concepts with their corresponding categories:
Match the following concepts with their corresponding categories:
The article suggests that historical variables have only a direct impact on productivity.
The article suggests that historical variables have only a direct impact on productivity.
What is the JEL code for the category related to 'Demographic Economics' in the article?
What is the JEL code for the category related to 'Demographic Economics' in the article?
What is the primary issue discussed in the article regarding the impact of historically transmitted traits on economic development?
What is the primary issue discussed in the article regarding the impact of historically transmitted traits on economic development?
What is the correlation between biogeographic variables and population density in 1500, according to Olsson and Hibbs (2005)?
What is the correlation between biogeographic variables and population density in 1500, according to Olsson and Hibbs (2005)?
The effect of latitude on population density in pre-industrial times is positive.
The effect of latitude on population density in pre-industrial times is positive.
What is the only way biogeographic variables matter for economic performance in pre-industrial times, according to the text?
What is the only way biogeographic variables matter for economic performance in pre-industrial times, according to the text?
The IV effect of biogeographic variables on population density in 1500 is quantitatively _______ than the OLS estimate.
The IV effect of biogeographic variables on population density in 1500 is quantitatively _______ than the OLS estimate.
What is the relationship between absolute latitude and contemporary income per capita, according to Ashraf and Galor (2011a)?
What is the relationship between absolute latitude and contemporary income per capita, according to Ashraf and Galor (2011a)?
The effects of geographic factors on development are direct.
The effects of geographic factors on development are direct.
Match the following concepts with their corresponding descriptions:
Match the following concepts with their corresponding descriptions:
A one-standard deviation increase in years since the agricultural transition has a ________ effect on population density in 1500.
A one-standard deviation increase in years since the agricultural transition has a ________ effect on population density in 1500.
What is a limitation of current development research?
What is a limitation of current development research?
Foreign aid has been shown to consistently improve political rights in recipient countries.
Foreign aid has been shown to consistently improve political rights in recipient countries.
What is the title of the book by Michael B. Anderson that explores the relationship between aid and peace?
What is the title of the book by Michael B. Anderson that explores the relationship between aid and peace?
According to Andersson, Karadja, and Prawitz (2017), mass migration can lead to ______________________ innovation.
According to Andersson, Karadja, and Prawitz (2017), mass migration can lead to ______________________ innovation.
Match the following authors with their research topics:
Match the following authors with their research topics:
Humanitarianism has played a significant role in shaping economic growth and development.
Humanitarianism has played a significant role in shaping economic growth and development.
What is the primary focus of the new empirical work in economic growth and development?
What is the primary focus of the new empirical work in economic growth and development?
What is a key factor in making research more inclusive?
What is a key factor in making research more inclusive?
What is the main obstacle for international business relations between Ethiopia and the rest of the world?
What is the main obstacle for international business relations between Ethiopia and the rest of the world?
Very small travel costs have a significant impact on business travel, capital flows, and economic growth.
Very small travel costs have a significant impact on business travel, capital flows, and economic growth.
What was the outcome of the public outcry against Nike, Adidas, and Reebok in the 1990s?
What was the outcome of the public outcry against Nike, Adidas, and Reebok in the 1990s?
Visa restrictions are estimated to reduce the aggregate welfare of the most-affected countries by as much as __________%.
Visa restrictions are estimated to reduce the aggregate welfare of the most-affected countries by as much as __________%.
Match the following outcomes with the corresponding strategies to combat global poverty:
Match the following outcomes with the corresponding strategies to combat global poverty:
What is a key factor that affects international trade and economic growth?
What is a key factor that affects international trade and economic growth?
Relaxing visa restrictions can lead to increased trade flows and economic growth.
Relaxing visa restrictions can lead to increased trade flows and economic growth.
What is the impact of visa restrictions on trade flows, according to Umana-Dajud (2019)?
What is the impact of visa restrictions on trade flows, according to Umana-Dajud (2019)?
What is the topic of the research paper by Johnson (2014)?
What is the topic of the research paper by Johnson (2014)?
Fair trade certification has a significant impact on the economic growth of coffee producers in Costa Rica.
Fair trade certification has a significant impact on the economic growth of coffee producers in Costa Rica.
What is the title of the monitoring report by Fairtrade International in 2018?
What is the title of the monitoring report by Fairtrade International in 2018?
The study by Hainmueller, Hiscox, and Sequeira (2015) examine consumer demand for ______________________ in a multistore field experiment.
The study by Hainmueller, Hiscox, and Sequeira (2015) examine consumer demand for ______________________ in a multistore field experiment.
Which of the following authors argue that geographic factors did not influence economic development after the introduction of agriculture?
Which of the following authors argue that geographic factors did not influence economic development after the introduction of agriculture?
US military aid has a positive impact on political conflict in Colombia.
US military aid has a positive impact on political conflict in Colombia.
What is the topic of the research paper by Dufluo (2001)?
What is the topic of the research paper by Dufluo (2001)?
Match the following authors with their research topics:
Match the following authors with their research topics:
What is the interval for the year 2000 in the graph?
What is the interval for the year 2000 in the graph?
The graph shows a negative correlation between the year and the interval.
The graph shows a negative correlation between the year and the interval.
What is the interval for the year 2010 in the graph?
What is the interval for the year 2010 in the graph?
The graph shows the interval for the year 1990 as __________.
The graph shows the interval for the year 1990 as __________.
Match the following years with their corresponding intervals:
Match the following years with their corresponding intervals:
What is the primary focus of the new empirical work in economic growth and development?
What is the primary focus of the new empirical work in economic growth and development?
Historical variables have no impact on contemporary income.
Historical variables have no impact on contemporary income.
What are the three key findings from the research by Spolaore and Wacziarg (2013)?
What are the three key findings from the research by Spolaore and Wacziarg (2013)?
The transmission of technological and institutional knowledge across populations is influenced by __________ and __________ channels.
The transmission of technological and institutional knowledge across populations is influenced by __________ and __________ channels.
Match the following concepts with their corresponding categories:
Match the following concepts with their corresponding categories:
Local context is necessary for evaluating the effectiveness of policies.
Local context is necessary for evaluating the effectiveness of policies.
What is the term used to describe the dispersion in income/capita?
What is the term used to describe the dispersion in income/capita?
Unconditional Convergence implies that poorer countries with smaller capital stocks per worker grow faster than richer countries.
Unconditional Convergence implies that poorer countries with smaller capital stocks per worker grow faster than richer countries.
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?
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?
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.
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.
Match the following concepts with their corresponding descriptions:
Match the following concepts with their corresponding descriptions:
What is the aim of explaining the reversed economic growth characterized by unconditional convergence?
What is the aim of explaining the reversed economic growth characterized by unconditional convergence?
What is one of the policy options to reduce global poverty?
What is one of the policy options to reduce global poverty?
True or False: The intervention is randomly implemented and rigorously evaluated, and if successful, it is scaled up and replicated elsewhere.
True or False: The intervention is randomly implemented and rigorously evaluated, and if successful, it is scaled up and replicated elsewhere.
What is the benefit of reducing labor restrictions and visa restrictions?
What is the benefit of reducing labor restrictions and visa restrictions?
Certified products that improve the well-being of producers can increase the ______________________ of consumers in rich countries.
Certified products that improve the well-being of producers can increase the ______________________ of consumers in rich countries.
Match the following policy options with their corresponding effects:
Match the following policy options with their corresponding effects:
True or False: Understanding local context is not crucial for development research.
True or False: Understanding local context is not crucial for development research.
What is another strategy to combat global poverty?
What is another strategy to combat global poverty?
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.
