CAS EC 102 Lecture Notes - Lecture 10: Marginal Product, Deng Xiaoping, Planned Economy
2 May 2016
School
Department
Course
Professor
6
CAS EC 102 Full Course Notes
Verified Note
6 documents
Document Summary
Main policy implication was foreign aid (only way to grow) International trade (main idea: countries will grow based on integration with global economy. Harvard article how china grew rich a. foreign direct investment (fdi) Open and operate business in foreign country: financial capital. Area: 3. 7m sq miles (4th largest in world) Population: 1. 4b (july, 2014 est. ) (largest in world) Per capita gdp: ,800 (2013 est in ppp terms) 7. 7% 92012 est), (9. 3% (2011 est. ) rural to skyscrapers=extraordinary growth but since 2013 growth has plummeted down to near 4%. China has aging population and not as many young people are coming up, young have to support old,=issue. Turning point: seizure of power of communist power under mao zedong : build up of steel in china to grow economy: industrialization: Talks about the great leap forward: under mao waste was legendary, massive investments in steel and heavy industry (increased capital/same old machines) =diminishing marginal product of capital (also happened in su)
