EC207 Lecture Notes - Lecture 4: Diminishing Returns, Human Capital Flight, Infant Mortality
Document Summary
Only remember hdi is traditional and part of a broader measure. If you sort out countries gdp per capita and hdi and see the difference and different ranks. External dependence on financial institutions like the imf by developing countries. Terms of trade become negative because you are exporting incomplete goods and importing manufactured goods. Then developing countries become forced to borrow from the imf because you are faced with needs. Elaborate on low level of manufacturing and exporting. What if other take advantage of your own natural resources. In some countries there are epidemics that are unable to be controlled. When family median income increase, you have more resources. Instead now you are not focused on the quantity of children but with the quality of children. Countries that empowered women greatly decreased infant mortality rate. The rural population has a low marginal productivity in developing countries. This creates a low wage when there is low marginal productivity.
