Convergence and Development Traps: How Did Emerging Economies Manage to Escape the Under-Development Trap?
- Topics:
- Global Strategy
- Tags:
- Convergence,
- Management,
- Strategy,
- Transfer,
- University Of Paris
- Source:
- University of Paris
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Overview: In presence of multiple equilibria, two broad complementary strategies may be conceived to lift a poor country out of its underdevelopment trap. The pure "big push" strategy consists in artificially increasing for a while the available income of such countries through large transfers of assistance, under the assumption that such transfers of resources would be sufficient to initiate a self-reinforcing economic growth process. This paper suggests that this strategy may be very often ineffective.
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Format: PDF | Size: 526KB | Date: Jun 2005 | Pages: 48
