Economics 172Issues in African Economic Development

Lecture 3

January 24, 2006

Economics 172: Lecture 2 2

• Reading packets are now at Bancroft Copy Central

Economics 172: Lecture 2 3

Outline:

(1) Jones (2002) on Solow model

(2) Easterly (2001) critique

(3) Bloom and Sachs (1998) on geography, health and African underdevelopment

Economics 172: Lecture 2 4

The Solow Model of Economic Growth

Economics 172: Lecture 2 5

The Solow Model of Economic Growth

Economics 172: Lecture 2 6

The Solow Model of Economic Growth

Economics 172: Lecture 2 7

The Solow Model of Economic Growth

Economics 172: Lecture 2 8

Economics 172: Lecture 2 9

The Curse of the Tropics?

• 1995 per capita income (PPP)

- Worldwide

Tropical $3,326, Non-tropical $9,027

Economics 172: Lecture 2 10

The Curse of the Tropics?

• 1995 per capita income (PPP)

- Worldwide

Tropical $3,326, Non-tropical $9,027

- Sub-Saharan Africa

Tropical $1,732, Non-tropical $5,438

Economics 172: Lecture 2 11

• For next time: Read Bloom and Sachs (1998)

Economics 172: Lecture 2 12

Whiteboard #1

Economics 172: Lecture 2 13

Whiteboard #2

Economics 172: Lecture 2 14

Whiteboard #3

Economics 172: Lecture 2 15

Whiteboard #4

Economics 172: Lecture 2 16

Whiteboard #5

Economics 172: Lecture 2 17

Map of Africa