By Yujiro Hayami
A finished and systematic account of the middle issues in improvement economics, this publication examines the explanations why a number of nations have accomplished a excessive point of affluence whereas the bulk stay bad and stagnant. It represents an unique blend of classical political economic climate, glossy institutional concept, and present improvement concerns, and is held jointly via the East Asian improvement event.
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Extra resources for Development Economics: From the Poverty to the Wealth of Nations
Alternatively, many have been forced to migrate to urban slums seeking subsistence from various informal activities (Chapter 7). Such a crisis situation could be overcome by the effort of substituting labour and capital for natural resources and using appropriate technology, as has been repeated in history since the transition from hunting and gathering to settled agriculture. Development of appropriate agricultural technology, though difficult, is possible with investment in adaptive research 28 Framework for Economic Development for exploiting the backlog of scientific and technological knowledge accumulated in developed economies (Chapter 4).
Negotiations in the GATT (General Agreement on Tariffs and Trade) Uruguay Round followed up by WTO (World Trade Organization) on intellectual property rights represented an attempt to establish internationally uniform rules on the protection and the transactions of property rights over a wide range of knowledge and information including computer software. This attempt was a response to the growing need of the world today in which the role of knowledge and information, as a factor of economic production, has been rising faster than that of tangible capital.
To illustrate this relationship, the 0-Z line is drawn in a concave form. The /-curve in the A-L quadrant represents the 'innovation possibility curve', defined as an envelope of unit isoquants corresponding to all the possible technologies that could have been developed with the knowledge and human capacity available at a particular period. This curve shifts over time 18 Framework for Economic Development FIG. 2) corresponding to the accumulation of knowledge and the improvement in human capacity.