The Great Divergence and Deindustrialization Thesis

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What was a deliberate effort made by countries to catch up with Britain in the standard model of development?

Integration of domestic market (correct)

Promotion of mass education

Finance industrialization

Protection of domestic industry

What was the main reason for the delay in the onset of modern economic growth in many regions?

Poverty traps

Import competition and deindustrialization

Lack of accessible coal and relatively high wages (correct)

Fragmentary railway system

Which regions were the first to transition to modern economic growth after Britain?

Western Europe and North America (correct)

Eastern Europe and Asia

South America and Africa

Oceania and Middle East

What were the key elements of the standard model of development?

Railways, schools, banks, tariffs Signup and view all the answers

What was still fragmentary in Germany in the mid-1800s compared to Britain?

Railway system Signup and view all the answers

What explains the wide difference in incomes across the globe today?

The Great Divergence Signup and view all the answers

What is one of the direct effects of geography on per capita income, as discussed in the text?

Lower levels of trust in relatives/neighbors/local officials Signup and view all the answers

According to the Engerman-Sokoloff thesis, what does Latin America's geography favor, leading to inequality in wealth, education, and political power?

Large slave plantations and exclusive institutions Signup and view all the answers

What did Roy (2008) argue about informal institutions in C19th India?

They hindered knowledge diffusion across social groups Signup and view all the answers

What is a key factor contributing to the low per capita incomes of ethnic groups severely affected by the Atlantic and Indian Ocean slave trades?

Lower levels of trust and higher transaction costs Signup and view all the answers

What did Galor, Moav, and Vollrath (2009) link to the emergence of human-capital promoting institutions in the U.S. during 1900-1940?

Inequality in landownership Signup and view all the answers

'The long-term effects of Africa’s slave trades' by Nunn (2008) and Wantchekon (2011) highlight what as a consequence of the slave trades?

'Low levels of trust in relatives/neighbors/local officials' and 'lower per capita incomes' Signup and view all the answers

Which event marked the beginning of the Great Divergence in GDP per capita?

The Industrial Revolution Signup and view all the answers

What was a significant factor contributing to the benefits for primary goods exporters?

Terms of trade effects Signup and view all the answers

What challenge hindered Japan's modernization in agriculture?

Technology transfer challenges Signup and view all the answers

According to the Hayami-Ruttan thesis, what is required for agricultural development?

Different technologies for different endowments Signup and view all the answers

What is a key requirement for transitioning to modern economic growth?

Capacity to innovate Signup and view all the answers

What influences societies' trade-off between anarchy and despotism?

Different societal fundamentals leading to different institutions Signup and view all the answers

Which factor may delay the transition to modern economic growth?

Lack of infrastructure and savings Signup and view all the answers

What is a potential risk associated with close informal relations between government, banks, and firms in Big Push policies?

Corruption risks Signup and view all the answers

Which historical events are cited as examples of Big Pushes gone wrong?

Stalinist industrialization in the USSR and the Great Leap Forward in China Signup and view all the answers

What does the California School argue may explain the Great Divergence between Europe and China?

Geographic differences such as coal supply and access to complementary resources Signup and view all the answers

What factor may halve the institutional effect estimate on growth according to the text?

Disease burden and present-day Malaria risk Signup and view all the answers

What may contribute to delaying the onset of modern economic growth in some regions?

Differences in geographic endowments, institutions, and culture Signup and view all the answers

Which factor contributed to the dominance of Western textiles in world markets?

Increased total factor productivity Signup and view all the answers

What led to deindustrialization in non-Western parts of the world?

Import competition Signup and view all the answers

What drove the Great Specialization and Great Divergence in the 19th century?

Increasing returns to scale and transportation advancements Signup and view all the answers

What contributed to Ottoman deindustrialization?

Shift in comparative advantage to primary goods production Signup and view all the answers

What was a characteristic of railway networks by the early 20th century in Europe-China comparison?

Differences in railway network development Signup and view all the answers

What was a peculiar characteristic of tariffs in the West?

Comparatively high tariffs due to a peculiar Western characteristic Signup and view all the answers

What led to deindustrialization in non-Western parts of the world?

Import competition Signup and view all the answers

What was a consequence of Ottoman deindustrialization?

Shift in comparative advantage to primary goods production Signup and view all the answers

What were the driving forces behind the Great Specialization and Great Divergence in the 19th century?

Increasing returns to scale and transportation advancements Signup and view all the answers

What contributed to the dominance of Western textiles in world markets?

Steamships and railways Signup and view all the answers

What was a peculiar characteristic of tariffs in the West?

Comparatively high due to a peculiar Western characteristic Signup and view all the answers

'Europe-China comparison' shows differences in which aspect by the early 20th century?

'Railway network' Signup and view all the answers

What are the direct effects of geography on per capita income as discussed in the text?

Influence on cultural and institutional legacy Signup and view all the answers

What did Roy (2008) argue about informal institutions in C19th India?

They hindered knowledge diffusion across social groups Signup and view all the answers

What does the Engerman-Sokoloff thesis suggest about Latin America's geography?

Favors large slave plantations leading to inequality in wealth, education, and political power Signup and view all the answers

According to Galor, Moav, and Vollrath (2009), what was linked to the emergence of human-capital promoting institutions in the U.S. during 1900-1940?

Inequality in landownership Signup and view all the answers

'The long-term effects of Africa’s slave trades' by Nunn (2008) and Wantchekon (2011) highlight what as a consequence of the slave trades?

Lower levels of trust in relatives/neighbors/local officials and lower per capita incomes Signup and view all the answers

What is a key factor contributing to the low per capita incomes of ethnic groups severely affected by the Atlantic and Indian Ocean slave trades?

Lower levels of trust in relatives/neighbors/local officials Signup and view all the answers

Which factor hindered Japan's modernization in agriculture?

U.S. agricultural technology was not useful in Japan due to different land-labor ratios Signup and view all the answers

What does the Hayami-Ruttan thesis suggest about agricultural development?

Different endowments require different technologies for agricultural development Signup and view all the answers

What do institutions represent in the context of societal choices?

Endogenous choices made by societies to navigate between undesirable extremes Signup and view all the answers

What is the significance of the Great Divergence in GDP per capita?

It began around 1820 and marked a divergence in economic growth among regions Signup and view all the answers

'Transition to modern economic growth often requires the capacity to innovate' - What does this statement imply?

Innovation is a crucial factor for transitioning to modern economic growth Signup and view all the answers

'Societies' trade-off between anarchy and despotism depends on their institutional possibility frontier' - What does this statement suggest?

Different societal fundamentals lead to different institutions that minimize social losses due to expropriation Signup and view all the answers

Study Notes

Economic Growth, Deep Root Problems, and Big Push Policies

Big Push policies may lead to rapid transitory growth, as seen in East Asian convergence after 1950
Poverty traps, such as lack of infrastructure, savings, or necessary industries, can delay the transition to modern economic growth
Late-industrializing countries may require greater state initiative, as heavy government involvement in East Asian industrialization suggests
Close informal relations between government, banks, and firms in Big Push policies can lead to corruption risks
Central planning in the Soviet Union coped with mass production but failed in late 20th-century frontier developments
Examples of Big Pushes gone wrong include Stalinist industrialization in the USSR and the Great Leap Forward in China
The California School argues that geographic differences, such as coal supply and access to complementary resources, can explain the Great Divergence between Europe and China
Institutional legacy effects from colonization policies, such as checks and balances and property rights protection, can impact long-run growth
European settlers' institutions, cultural factors, and disease environments all play a role in long-run growth, making it hard to isolate institutional effects
Disease burden and present-day Malaria risk can halve the institutional effect estimate on growth
Differences in geographic endowments, institutions, and culture may contribute to delaying the onset of modern economic growth in some regions
The transition to modern economic growth may require a "Big Push" and involve overcoming deep root factors such as geographic endowments and institutional legacies

Railway Networks, Trade Liberalization, and Industrialization in the 19th Century

Germany's railway network caught up with Britain's by 1880
Europe-China comparison shows early 20th-century railway network differences
Mass education spread quickly in the West by the early 20th century
Tariffs were comparatively high in the West due to a peculiar Western characteristic
Asymmetric free trade treaties and military imbalances emerged in the 19th century
Import competition led to deindustrialization in non-Western parts of the world
The British cotton textile industry became competitive due to increased total factor productivity
Western textiles began dominating world markets, leading to deindustrialization in other regions
Ottoman deindustrialization led to a shift in comparative advantage to primary goods production
The Great Specialization and Great Divergence were driven by increasing returns to scale and transportation advancements
New Economic Geography models explain trade specialization and income divergence in the 19th century
Steamships and railways led to the Great Specialization and Great Divergence in the 19th century

The Great Divergence and Economic Growth Challenges

The Great Divergence in GDP per capita began around 1820
Some regions transitioned to modern economic growth while specializing in primary production
Terms of trade effects led to benefits for primary goods exporters
China and India experienced long-run declines in per capita incomes
Japan's technology transfer challenges in agriculture hindered its modernization
U.S. agricultural technology was not useful in Japan due to different land-labor ratios
The Hayami-Ruttan thesis suggests different endowments require different technologies for agricultural development
Transition to modern economic growth often requires the capacity to innovate
Institutions are endogenous choices that societies make to navigate between undesirable extremes
Societies' trade-off between anarchy and despotism depends on their institutional possibility frontier
Different societal fundamentals lead to different institutions that minimize social losses due to expropriation
Rwanda's steep institutional possibility frontier is influenced by a history of ethnic conflict

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge about crucial economic concepts such as The Great Divergence and Caveats to the deindustrialization thesis. Explore the transition to modern economic growth and the impact on primary production and global trade.

The Great Divergence and Deindustrialization Thesis

Podcast Beta

Questions and Answers

What was a deliberate effort made by countries to catch up with Britain in the standard model of development?

What was the main reason for the delay in the onset of modern economic growth in many regions?

Which regions were the first to transition to modern economic growth after Britain?

What were the key elements of the standard model of development?

What was still fragmentary in Germany in the mid-1800s compared to Britain?

What explains the wide difference in incomes across the globe today?

What is one of the direct effects of geography on per capita income, as discussed in the text?

According to the Engerman-Sokoloff thesis, what does Latin America's geography favor, leading to inequality in wealth, education, and political power?

What did Roy (2008) argue about informal institutions in C19th India?

What is a key factor contributing to the low per capita incomes of ethnic groups severely affected by the Atlantic and Indian Ocean slave trades?

What did Galor, Moav, and Vollrath (2009) link to the emergence of human-capital promoting institutions in the U.S. during 1900-1940?

'The long-term effects of Africa’s slave trades' by Nunn (2008) and Wantchekon (2011) highlight what as a consequence of the slave trades?

Which event marked the beginning of the Great Divergence in GDP per capita?

What was a significant factor contributing to the benefits for primary goods exporters?

What challenge hindered Japan's modernization in agriculture?

According to the Hayami-Ruttan thesis, what is required for agricultural development?

What is a key requirement for transitioning to modern economic growth?

What influences societies' trade-off between anarchy and despotism?

Which factor may delay the transition to modern economic growth?

What is a potential risk associated with close informal relations between government, banks, and firms in Big Push policies?

Which historical events are cited as examples of Big Pushes gone wrong?

What does the California School argue may explain the Great Divergence between Europe and China?

What factor may halve the institutional effect estimate on growth according to the text?

What may contribute to delaying the onset of modern economic growth in some regions?

Which factor contributed to the dominance of Western textiles in world markets?

What led to deindustrialization in non-Western parts of the world?

What drove the Great Specialization and Great Divergence in the 19th century?

What contributed to Ottoman deindustrialization?

What was a characteristic of railway networks by the early 20th century in Europe-China comparison?

What was a peculiar characteristic of tariffs in the West?

What led to deindustrialization in non-Western parts of the world?

What was a consequence of Ottoman deindustrialization?

What were the driving forces behind the Great Specialization and Great Divergence in the 19th century?

What contributed to the dominance of Western textiles in world markets?

What was a peculiar characteristic of tariffs in the West?

'Europe-China comparison' shows differences in which aspect by the early 20th century?

What are the direct effects of geography on per capita income as discussed in the text?

What did Roy (2008) argue about informal institutions in C19th India?

What does the Engerman-Sokoloff thesis suggest about Latin America's geography?

According to Galor, Moav, and Vollrath (2009), what was linked to the emergence of human-capital promoting institutions in the U.S. during 1900-1940?

'The long-term effects of Africa’s slave trades' by Nunn (2008) and Wantchekon (2011) highlight what as a consequence of the slave trades?

What is a key factor contributing to the low per capita incomes of ethnic groups severely affected by the Atlantic and Indian Ocean slave trades?

Which factor hindered Japan's modernization in agriculture?

What does the Hayami-Ruttan thesis suggest about agricultural development?

What do institutions represent in the context of societal choices?

What is the significance of the Great Divergence in GDP per capita?

'Transition to modern economic growth often requires the capacity to innovate' - What does this statement imply?

'Societies' trade-off between anarchy and despotism depends on their institutional possibility frontier' - What does this statement suggest?

Study Notes

Studying That Suits You

Related Documents

Description

More Quizzes Like This

Historia Economica Mundial tema 4 Crecimiento económico (1870-1913):...

Globalization and Economic Growth Quiz

Navigating Global Trade Quiz: International Trade Basics

Global Economic Growth and Commodity Super-Cycle