Development Economics

environmental kuznets curve

The Environmental Kuznets Curve

The Kuznets curve is an inverted U curve, with the Y-axis as inequality and time or per-capita incomes as the X-axis. It is used to graph the hypothesis that as an economy develops, market forces begin to increase and economic inequality decreases. This suggests that as a nation is going through industrialization, and mechanization of…

harrod domar model

Harrod Domar Model

he Harrod Domar model shows the importance of saving and investment in a developing economy. The model was developed independently by Roy F. Harrod in 1939. The growth of an economy is positively related to its savings ratio and negatively related to the capital output ratio. It suggests that there is no natural reason for…

types of foreign aid

Types of Foreign Aid

Foreign aid is one the largest sources of foreign exchange. There are five different types of foreign aid programs. It is defined as the voluntary transfer of resources from one country to anther. It includes any flow of capital to developing countries. A developing country usually does not have a strong industrial base and is characterized by…

economic growth factors

Economic Growth Factors

he economic growth of a country is the increase in the market value of the goods and services produced by an economy over time. Growth doesn’t occur in isolation, events in one country and region can have a significant effect on growth prospects in another. Economic Growth is conventionally measured as the percent rate of increase…

characteristics of developing economies

What Do Developing Economies Have In Common?

ven though developing nations have very different backgrounds in terms of resources, history, demography, religion and politics, they still share a few common characteristics. Today, we will go over six common characteristics of developing economies. Common Characteristics of Developing Economies Low per capita real income This is one of the most defining characteristics of developing…

risk strategies for farmers

Risk Strategies for Farmers in Developing Economies

x-ante strategies prevent or reduce risk like savings. While ex-post or risk coping strategies cope up with risk like dis-savings. These are two types of risk strategies for farmers to mitigate risk outcome. Factors such as weather, rainfall, pests and diseases hitting crops, irrigation can alleviate some income risk. Aggregate shocks are problems that affect everyone in the village. They are not unique…

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