CAS EC 102- Final Exam Guide - Comprehensive Notes for the exam ( 59 pages long!)

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Bruce Watson

Document Summary

Institutions and governance matter just as much and probably more than acquiring physical capital. No matter how much capital is poured into an economy, strong growth is impossible if individuals and companies don"t enjoy meaningful property rights, reliable courts, and other basic market institutions. African countries must become more open to trade and foreign direct investment, and their efforts must be reciprocated. Governments must be careful not to fall into debt traps. African countries need more exible exchange rate and price systems. It"s important for them to improve the exibility of their product and labor markets. The role of geography and resource endowments in development shouldn"t be underestimated. Smith"s point is that africa and central asia could not effectively participate in international trade because transport costs were simply too high. Characterized by the most adverse malaria ecology in the world, africa was as effectively cut off from global trade and investment by that killer disease.