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7/30/2019 4. KULIAH 4 INDEV GANJIL 2012
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TEORI PEMBANGUNAN
2KULIAH 4 PEMBANGUNAN INTERNASIONAL
ANDRE ARDI
Wednesday, October 17, 12
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WHAT WE ARE GOING
TO SEE?
BIG PUSH THEORY
O-RING THEORY
GROWTH DIAGNOSTIC FRAMEWORK
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BIG PUSH THEORY
Rodenstein-Rodan
Industrializationwould happen
Economic of
scale
Oligopolisticmarket
developedLarge amountof investmentunderdeveloped
Bit-by-bitinvestment wontimpact growth -lead to wastage
of resource
To take off,an airplane
need acritical
ground speed
BIGPUSH
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INDIVISIBILITY
INUNDERDEVELOPEDCOUNTRY
IN PRODUCTIONFUNCTION
In
complementarydemand
In the supplyof saving
NEED HEAVYINVESTMENT
Economic of scale
Oligopolisticmarket
A large number
of industryneed to be set
up
So worker onone industryconsume the
output of otherindustry
Forinvestment
Need highermarginal rateof saving
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Skilled labour
Enlargement marketsize
Centralizedpan-industrial
planning
Cluster or agglomerationof industry
The role of state
The private sector cantundertake such planning
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O-RING
THEORYMICHAELKREMER
SMALLDIFFERENCE INWORKER SKILL
LARGEDIFFERENCES
WAGES
OUTPUT
So wage & productivity differential between countries with different skilllevels are enormous
The solution is subsidies to investment in
human capitalWednesday, October 17, 12
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Poor countries have higher shares of primary production in GNPWorker will be paid more in the industrieswith high value inputIf rms can choose among technologies, thehighest skill worker will use the highesttechnology
The rich countries tend to specialized incomplicated products.Thus subsidies to investment in humancapital may be very efcient.
Small differences between countries inhuman capital investment subsidies and thequality of educational system will lead tomultiplier effects that create largedifferences in worker skill.
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Bad internationalfinance
Low social
returns
Poorgeography
Low
humancapital
Low
domesticsaving
Poorintermediation
Macro risks:
financial, monetary,fiscal instability
Micro risks:
property rights,corruption, taxes
Information
externalities:self-discovery
Coordinationexternalities
Badinfrastructure
Governmentfailures
Marketfailures
Bad localfinance
Low return toeconomic activity
Low
appropriability
Possible causes
High cost of finance
RE 4.3 Hausmann-Rodrik-Velasco Growth Diagnostics Decision Tree
Problem: Low levels of private investment and entrepreneurship
THE HAUSMANN-RODRIKVELASCO GROWTH
DIAGNOSTIC FRAMEWORKDANI RODRIK
Wednesday October 17 12