Malthusian Theory of Population
The Malthusian Theory of Population is a theory of exponential population growth and arithmetic food supply growth created by Thomas Robert Malthus.
Development Economics
Development economics is the study of transforming and improving the infrastructure of economies in low-income countries. The goal of developmental economics is not to apply traditional economics theories to these countries in broad strokes, but rather to focus on context-specific structural issues to address economic problems. Because it relies on the intersection of delicate systems such as economy, government, and socioeconomic groups, development economics incorporates many different fields of research in order to solve complex issues within a developing country. It is a sub-section of economics that engages with some of the most impactful and topical challenges in economics today.
The Demographic Transition Model
The demographic transition model (DTM) shows shifts in the demographics of a population during economic and social development. This transition is two-fold: both death and birth rates go from high to low over time as development progresses.
Purchasing Power Parity
Purchasing power parity (PPP) is a theory that says that in the long run (typically over several decades), the exchange rates between countries should even out so that goods essentially cost the same amount in both countries.
Foreign Aid
Foreign aid is defined as the voluntary transfer of resources from one country to another country. This transfer includes any flow of capital to developing countries. A developing country usually does not have a robust industrial base and is characterized by a low Human Development Index (HDI).
Relative Poverty
Relative poverty is the level of poverty which changes depending on the context–it’s relative to the economic context in which it exists. Relative poverty is present when a household income is lower than the median income in a particular country.
The Easterlin Paradox
The Easterlin Paradox was theorized by Professor Richard Easterlin, who is an Economics Professor at the University of Southern California. In his paper titled, “Does Economic Growth Improve the Human Lot? Some Empirical Evidence”, he concluded that a country’s level of economic development and level of happiness are not connected.
Unemployment in India
Unemployment in India is a complex problem with numerous overlapping and intertwined causes; however, it is possible to identify several key causes.
The Environmental Kuznets Curve
The Environmental Kuznets Curve is used to graph the idea that as an economy develops, market forces begin to increase and economic inequality decreases. More specifically that as the economy grows, initially the environment suffers but eventually the relationship between the environment and the society improves.
Equitable Distribution of Income
A more equitable distribution of income may help accelerate growth and promote economic development. Equitable doesn’t mean equal distribution of income. It refers to the distribution of income that is ‘fair,’ but the concept of ‘fair’ is subjective.
Risk Strategies for Farmers in Developing Economies
Ex-ante strategies prevent or reduce risk like savings. On the other hand ex-post or risk coping strategies mitigate the risk like dis-savings. These are two types of risk strategies for farmers to mitigate risk outcomes.
Harrod Domar Model
The Harrod Domar model shows the importance of saving and investing in a developing economy. The model was developed independently by Roy F. Harrod and Evsey Domarin 1939.
Characteristics of Developing Economies
Even though developing nations have very different backgrounds in terms of resources, history, demography, religion and politics, they still share a few common characteristics.