Due 11/18 /21
Total point 100
Answer the following essay type questions.
You can use as many paragraphs as you may need.
Part I (80 point).
1. Discuss the BRAC model and evaluate its performance in achieving the goals of economic development? Can this model be replicated in other countries?
2. Does trade reinforce existing inequalities? This fits in nicely with the North-South model. Discuss supply and demand basics and vicious circles.
3. Compare and contrast a successful strategy of import substitution (Korea, Taiwan) with a disastrous one (e.g. Argentina).
4. In the Harrod-Domar model, if the savings rate is 20% and the incremental capital output ratio is five, abstracting from depreciation, what is the implied growth rate.
5.Why did some adopt a course of aggrandizement for the rulers and other focus successfully on shared growth?
6. What are the terms of trade? What factors lead them to change over time?
7. Briefly explain the major argument of the factor endowment trade theory.
8. In what ways may social evaluations of costs and benefits differ from those implied by market prices? Explain carefully.
9. Briefly, what are the major causes of export earnings instability for developing countries?
10. Many developing countries have a static comparative advantage in the production of one or two primary products. In what ways might specialization in these products contribute to growth and development? In what ways might this fail to contribute?
Define, discuss the following concepts in developing countries reform context. (20point).
1. Unified and competitive exchange rate
2. Fiscal discipline 3. Trade liberalization4. Elimination of barriers to direct foreign investment (DFI)5. Financial liberalization