INTB 1209 Chapter Notes - Chapter 3: Mixed Economy, Amartya Sen, Gross National Income
22 Mar 2016
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Document Summary
Gross national income(gni) per head of population, common measure of economic development. Purchasing power parity(ppp) adjustment, allows for more direct comparison of living standards in different countries then gni. Innovation and entrepreneurship are the engines of growth: innovation creation of new products, process, strategies, management practices, organizations, entrepreneurs commercialize innovative processes. Innovation and entrepreneurship require a market economy: market economies greater incentives for innovation. Rights: property rights are needed to provide an incentive for innovation. The required political system: many argue that democratic systems are required for economic progress but dictatorships that are committed to a market economic can achieve economic growth. Economic progress begets democracy: a belief that economic progress leads to democracy. Geography, education, and economic development: landlocked countries have slower growth rates than coastal countries because of their geography, higher education leads to faster economic growth (cid:1) The spread of democracy: three reasons for the spread of democracy.
