bhattacharyya - growth miracles and growth debacles; exploring root causes (2011)

[...]... M2545 - BHATTACHARYYA PRINT.indd 5 02/03/2011 10:09 M2545 - BHATTACHARYYA PRINT.indd 6 02/03/2011 10:09 PART I History and economic development M2545 - BHATTACHARYYA PRINT.indd 7 02/03/2011 10:09 M2545 - BHATTACHARYYA PRINT.indd 8 02/03/2011 10:09 2 The Great Divergence: an account of the growth miracles and growth debacles since AD 1000 As I have illustrated in the introduction with the Tanzania and. .. PRINT.indd 18 02/03/2011 10:09 Theories of root causes of economic progress 19 3.3 ROOT AND ‘PROXIMATE’ CAUSES OF DEVELOPMENT: WHAT ARE THE DIFFERENCES? A major criticism of the root causes literature is that its distinction of root and proximate causes is somewhat arbitrary Furthermore, the justification for putting institutions and diseases into the root causes basket is also unclear Before we proceed... Russia, China, India and Indonesia I also revisit the ‘reversal of fortune’ hypothesis proposed by Daron Acemoglu, Simon Johnson and James Robinson Chapter 3 critically evaluates theory and evidence on the root causes of economic progress It begins by distinguishing between root and proximate causes It also shows how the idea of root causes can be augmented into a standard Solow growth model Some of... opportunities, more extensive domestic markets and better overall growth The South and the Caribbean, in contrast, were endowed with vast mining resources and climates and soil conditions conducive to commercial crops such as sugar, tobacco and cotton To exploit these resources, which exhibit large M2545 - BHATTACHARYYA PRINT.indd 23 02/03/2011 10:09 24 Growth miracles and growth debacles economies of scale,... economy models and theories of institutions are reviewed in this chapter It is followed by a review of theory and evidence on the role of institutions, the role of religion and culture, the role of geography, the role of M2545 - BHATTACHARYYA PRINT.indd 3 02/03/2011 10:09 4 Growth miracles and growth debacles trade openness, the role of human capital and the role of state formation and war Chapter... ethno-linguistic fractionalization and so forth The list is growing over time and it is far from being exhaustive The second strategy is to look at the deep structural features of the M2545 - BHATTACHARYYA PRINT.indd 17 02/03/2011 10:09 18 Growth miracles and growth debacles economy The idea is that the deep structural features influence proximate causes (factor accumulation) over the long horizon and. .. Britain and the Netherlands), which then demanded and obtained institutional reforms to protect their property rights, enabling them to trade and invest more, triggering a circular and cumulative pattern of economic growth However, this was not the case with some of the early starters in the colonization process (notably Portugal and Spain) Even though they managed to expand their trading and ransom-seeking... producing income Y: 15 M2545 - BHATTACHARYYA PRINT.indd 15 02/03/2011 10:09 16 Growth miracles and growth debacles Yt 5 F (Kt, Ht, Et) 5 KaH bE 1 2a 2b t t t (3.1) where Kt and Ht are the stock of physical and human capital, respectively, Et 5 AtLt is effective labour growing at the aggregate rate of exogenous population growth n plus technological progress g Dividing both sides by Et and suppressing the time... the validity of labelling institutions and diseases as root causes Some of the major ones are as follows First, is the distinction between proximate and root causes meaningful and the same in all contexts, especially when there is virtually nothing except geography that is truly fixed?1 The answer to this is yes, as the distinction between proximate and root causes relies more on causal linkages between... theories and empirics of deep structural determinants of economic progress This provides a background for the M2545 - BHATTACHARYYA PRINT.indd 20 02/03/2011 10:09 Theories of root causes of economic progress 21 unifying structure to be presented in Chapter 4 Theories of state, institutions, religion and culture, geography, trade and human capital and knowledge are reviewed I include human capital and knowledge . alt="" Growth Miracles and Growth Debacles M2545 - BHATTACHARYYA PRINT.indd iM2545 - BHATTACHARYYA PRINT.indd i 02/03/2011 10:0902/03/2011 10:09 To Anna, Sahana and Swapan M2545 - BHATTACHARYYA. BHATTACHARYYA PRINT.indd iiM2545 - BHATTACHARYYA PRINT.indd ii 02/03/2011 10:0902/03/2011 10:09 Growth Miracles and Growth Debacles Exploring Root Causes Sambit Bhattacharyya Research Fellow,. the root causes of economic progress. It begins by distinguishing between root and proxi- mate causes. It also shows how the idea of root causes can be augmented into a standard Solow growth