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Economic Development
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5 Growth
4
B Population growth rate C
Trap
3 Trap
1
A
Growth Income per capita
0
Y 0 Y1 Y2 Y3 Y4
-1
Copyright © 2009 Pearson Addison-Wesley.
All rights reserved. 6-23
Criticism of The Malthusian Trap
• Rapid income growth due to technological
advancement
0
Income per capita
-1
Copyright © 2009 Pearson Addison-Wesley.
All rights reserved. 6-25
Cross-National Evidence
• Many LDCs have been able to lower population
growth rate while increasing income per capita
(e.g., China, Sri Lanka, Chile, Singapore)
Production/
Size Employment
Structure Goods and
Distribution Services
Productive
Capacity: Capabilities/
Fertility Natural Resources and Well being
Mortality Environment Longer life
Migration Physical Capital To achieve desired
Human Resources fertility
Others
Policies of Fertility Reduction
• Subordination of women