Dating the Great Divergence

2021 ◽  
Vol 16 (2) ◽  
pp. 266-285
Author(s):  
Jack A. Goldstone

AbstractNew data on Dutch and British GDP/capita show that at no time prior to 1750, perhaps not before 1800, did the leading countries of northwestern Europe enjoy sustained strong growth in GDP/capita. Such growth in income per head as did occur was highly episodic, concentrated in a few decades and then followed by long periods of stagnation of income per head. Moreover, at no time before 1800 did the leading economies of northwestern Europe reach levels of income per capita much different from peak levels achieved hundreds of years earlier in the most developed regions of Italy and China. When the Industrial Revolution began in Britain, it was not preceded by patterns of pre-modern income growth that were in any way remarkable, neither by sustained prior growth in real incomes nor exceptional levels of income per head. The Great Divergence, seen as the onset of sustained increases in income per head despite strong population growth, and achievement of incomes beyond pre-modern peaks, was a late occurrence, arising only from 1800.

2014 ◽  
Vol 1 (1) ◽  
pp. 77
Author(s):  
Luthfiya Fathi Pusposari

<p>Indonesian population growth from year to year has increased, the population of Indonesia has incense for about 20 million people from the previous census data. Soybean is one of commodity most consumed by society census. Demand of soybean in this country 2,4 million tons per year, as much as 70% comes from imported soybean. Based on demand theory there are many factors that influence demand of goods, among others, the price of the goods themselves, the price of other goods, population, etc. Purpose of this research is to understand the elasticity of  soybean’s demand in East Java and what variable which have the highest elasticity. The result of this research shows that variable of soybean's price is in elastic towards demand of soybean while variable of corn's price, income per capita and population is elastic. Variable which has sensitivity or the highest elasticity is variable of population</p><p>Keyword: Demand, Elasticity, Soybean</p>


Author(s):  
W. W. Rostow

The title of this book, The Great Population Spike and After: Reflections on the 21st Century, requires some explanation. The Great Spike is illustrated in the figure that serves as the book's frontispiece.1 The figure plots the rate of growth of global population from 8000 B.C. to 8000 A.D. In highly stylized form, it exhibits an average growth rate of zero except for the period between 1776 and 2176. In that interval, the spike occurs: the growth rate rises to a bit over 2% per annum in 1976, and then falls to zero again in the next century. Falling growth rates for the global population, the downward part of the spike, are already upon us. I should emphasize the word "stylized." The world's population growth rate was evidently not static at zero from 8OOOB.C. to the middle of the eighteenth century, nor will it remain static for the 8,000 years after the spike. It will fluctuate with the vicissitudes of history. But despite the illustration's oversimplicity, its message is significant. Figure 1.1 shows, in absolute terms, the leveling off of the global population, which will take place gradually. Global population will attain, according to present estimates, an absolute level of about 10 billion people as opposed to about 790 million in the mid-18th century. This rise, along with the rise in income per capita, is a rough measure of what the Industrial Revolution has achieved since the 18th century, but the industrialization of the globe also set in motion forces that will bring about a decline in the rate of increase in population. The demographic transition decrees that after a certain point the birth rate will fall as income per capita rises. These negative forces will come to dominate the 21st century. Thus, this book concentrates on the period from the 1990s to around 2050, set against the background of the past several centuries. It deals, in effect, with both sides of the Great Spike. It is suffused, however, with the proposition that the 21st century, if it proves relatively peaceful, will soon face a period in which a rising population and effective demand in the presently developing nations will strain technologies and existing resources, followed by a long period in which the Industrial Revolution will have been largely diffused around the world.


2000 ◽  
Vol 90 (4) ◽  
pp. 806-828 ◽  
Author(s):  
Oded Galor ◽  
David N Weil

This paper develops a unified growth model that captures the historical evolution of population, technology, and output. It encompasses the endogenous transition between three regimes that have characterized economic development. The economy evolves from a Malthusian regime, where technological progress is slow and population growth prevents any sustained rise in income per capita, into a Post-Malthusian regime, where technological progress rises and population growth absorbs only part of output growth. Ultimately, a demographic transition reverses the positive relationship between income and population growth, and the economy enters a Modern Growth regime with reduced population growth and sustained income growth. (JEL J13, O11, O33, O40)


2006 ◽  
Vol 11 (2) ◽  
pp. 71-77 ◽  
Author(s):  
Khalid Mushtaq

This paper examines the existence of a long-run relationship between population and per capita income in Pakistan for the period 1960-2001 using cointegration analysis. Unit root results show that population is integrated of order zero while per capita income is integrated of order one; further, Johansen’s procedure show that no long-run cointegrating relationship exists. Thus, population growth neither causes per capita income growth nor is caused by it. A corollary is that population growth neither stimulates per capita income growth nor reduces it.


Author(s):  
Robert L. Paarlberg

This article examines the worsening food crisis in sub-Saharan Africa. It discusses how food production has failed to keep pace with population growth, partly due to low farm productivity. Because most Africans are farmers, lagging production per capita translates into little or no rural income growth, and hence little or no increase in the capacity to purchase food. Decades of lagging farm productivity have resulted in a doubling of the number of Africans living in extreme poverty, from 150 million in 1980 to approximately 300 million in 2013. The analysis then turns to the reasons behind the government’s failure to boost farm productivity. The article also considers the potential solutions to the current food and farming crisis.


2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Olorunfemi Yasiru Alimi ◽  
Akinola Christopher Fagbohun ◽  
Mohammed Abubakar

AbstractThe controversial debate on whether high population translates to weak or better economic growth has been a topical discussion in the area of development economics. This study therefore uses the data of the Nigerian economy to investigate the links among population growth, growth in output and income per capita growth for the periods of 1981–2018. The study employs both ARDL bound testing approach to cointegration and fully modified least square methods to evaluate the parameter estimates. We found that there exists a long-run relationship between population growth and economic growth in Nigeria. Further, the study found that the statistical and significant effect of population growth is more on long-run income growth than long-run income per capita growth. Meanwhile, in the short-run, an adverse effect is reported from population growth to economic growth, implying that the former has a detrimental effect on the latter. The reason for the adverse effects of population growth in the short-run results from the high number of dependents, whereas, in the long-run, there is a chance of demographic dividend that makes the young people becomes productive in their adulthood. Our findings, therefore, support the league of many studies that population growth is an asset to the long-run economic growth of Nigeria. In contrast, it has a poor impact on economic performance in the short-run. Thus, there is a need for proper and adequate utilization of the country’s rising population in appropriate areas of the economy where their efforts would be fully utilized towards improving the overall growth of Nigeria.


1993 ◽  
Vol 32 (4I) ◽  
pp. 411-431
Author(s):  
Hans-Rimbert Hemmer

The current rapid population growth in many developing countries is the result of an historical process in the course of which mortality rates have fallen significantly but birthrates have remained constant or fallen only slightly. Whereas, in industrial countries, the drop in mortality rates, triggered by improvements in nutrition and progress in medicine and hygiene, was a reaction to economic development, which ensured that despite the concomitant growth in population no economic difficulties arose (the gross national product (GNP) grew faster than the population so that per capita income (PCI) continued to rise), the drop in mortality rates to be observed in developing countries over the last 60 years has been the result of exogenous influences: to a large degree the developing countries have imported the advances made in industrial countries in the fields of medicine and hygiene. Thus, the drop in mortality rates has not been the product of economic development; rather, it has occurred in isolation from it, thereby leading to a rise in population unaccompanied by economic growth. Growth in GNP has not kept pace with population growth: as a result, per capita income in many developing countries has stagnated or fallen. Mortality rates in developing countries are still higher than those in industrial countries, but the gap is closing appreciably. Ultimately, this gap is not due to differences in medical or hygienic know-how but to economic bottlenecks (e.g. malnutrition, access to health services)


2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Veny Anindya Puspitasari

<p>The minimum wage is a macroeconomic issue that is still debated, Basically, the minimum wage policy aimed to protect workers, so that thet earn an adequate wages to finance the basic needs of their life. Practically, the minimum wage policy often encounters its purpose because it is regarged as miserable for those who have no expertise. This phenomenon is mainly happening in the low –avegrage- income countries that have many unskilled workers. Gahana, Indonesia, Costra Rica were used to be analyzed in this paper. According to International Water Association data year 2006, those countris earn income per capita less than US$ 9,200 and were categorized as low average – income countries. This research found that minimum wage impelentation in all three countries was not effective. When minimum wage policy was implemented, a lot of people felt aggrieved.</p><p>Keywords : Economic polict, Minimum wage, Income</p>


Author(s):  
Dominika Kuberska ◽  
Karolina Suchta

The aim of the study was to unveil the specifics of consumer behavior on the certified baby food market, in particular with regard to their determinants. A questionnaire was used as a tool to conduct this study. A unique nature of the relationship between the buyer and the consumer on the market (a mother and a child) could have influenced the results obtained. Price is not the key determinant of behavior of buyers on the market. In addition, there is no correlation between the net income per capita and household expenditure on certified baby food.


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