Monday, March 7, 2016

Development Economics-3

Abramovitz : Catching hypothesis 
On the surface of the reason of delay in development is technology , but reason is actually social skill which has ability to absorb development quickly, social skills like politic environment , trade ,industry,education and finance. According to Abromovitz , how much country is in a high backwardness , this follower country (follows up technology in Developed countries ,copies them , or try to import them) has a high chance to catch up with D.C quickly.
 Those organism transmit technology to the country , international communication networks,multinational corporations,international trade and direct investment.Besides , these factors general macroeconomic situation such as morol hazard . legal environment matter . For example : India , as English speaking country colony, they have a leading role in customer service assisting to USA , While assisting they have become follower of high-tech.
After social skills had stood up on stale feet , development comes.

Perez and Soete : Window of opportunity

Does "being late in technology" have advantage ? more production is developed , product becomes more standardized . So all developing countries have to is produce standardized products without any pressure of innovating and investing in new technology.
To go over the restriction of technology can bring development in underdeveloped countries.

Gerschenkron :Differentiated System

Development and social skills have to come up simultaneously. At this stage , developed countries can become resource in various departments for developing countries. They could educated skilled labor force , and import technical information and knowledge to underdeveloped countries. So those countries in not enough budget can save up cost of research and development. To import tech and maintain importing , there is some special institutes needed. We can give few examples at this rate.
In Germany : there were investment banks
in Japan :there were called "zaibatsu" and "keiretsu " institutes
in South Korea : there were called " chaebols " private companies had a mission to carry out of importing tech and development.

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