Chapter 8: Economic Growth and Development

In this section

• Factors of Growth (Labor, Capital, Productivity)
  Factors of Growth (Labor, Capital, Productivity) (CFA Level 1): Labor as a Driver of Economic Growth, Capital Accumulation and Deepening, and Productivity as the Real Engine. Key definitions, formulas, and exam tips.
• Growth Theories (Classical, Neoclassical, Endogenous)
  Growth Theories (Classical, Neoclassical, Endogenous) (CFA Level 1): Classical Growth Theory, Neoclassical Growth Theory, and Diminishing Returns and the Steady State. Key definitions, formulas, and exam tips.
• Human Capital, Technology, and Innovation
  Human Capital, Technology, and Innovation (CFA Level 1): Role of Human Capital, Skill-Biased Technological Change, and Technology as a Growth Driver. Key definitions, formulas, and exam tips.
• Demographics and Growth
  Demographics and Growth (CFA Level 1): Demographic Transition, Age Structures and Dependency Ratios, and Population Growth, Labor Force, and Capital Accumulation. Key definitions, formulas, and exam tips.
• Barriers to Economic Development
  Barriers to Economic Development (CFA Level 1): Governance and Political Stability, Corruption and Weak Rule of Law, and Low Capital Formation. Key definitions, formulas, and exam tips.
• Environmental and Sustainability Considerations
  Environmental and Sustainability Considerations (CFA Level 1): Importance of Externalities, Sustainable Development and Growth, and Environmental Kuznets Curve (EKC). Key definitions, formulas, and exam tips.
• Institutional Factors in Economic Development
  Institutional Factors in Economic Development (CFA Level 1): Why Institutions Matter for Economic Development, Legal Frameworks, Property Rights, and Governance, and Stable Monetary and Fiscal Institutions. Key definitions, formulas, and exam tips.
• Role of Infrastructure in Economic Development
  Role of Infrastructure in Economic Development (CFA Level 1): Defining Infrastructure and Its Key Sectors, Lowering Costs and Facilitating Trade, and Synergy Between Infrastructure and Human Capital. Key definitions, formulas, and exam tips.
• Absolute vs. Conditional Convergence Debate
  Absolute vs. Conditional Convergence Debate (CFA Level 1): Absolute Convergence: The Theory, Power of Diminishing Returns, and Critiques and Reality Checks. Key definitions, formulas, and exam tips.
• Measuring and Comparing Living Standards (HDI, Alternative Welfare Indicators)
  Measuring and Comparing Living Standards (HDI, Alternative Welfare Indicators) (CFA Level 1): Assessing Living Standards Beyond GDP, Human Development Index (HDI), and Why HDI Adds Value. Key definitions, formulas, and exam tips.