Growth and Development Experience of China and Sub Saharan Africa

Full Essay question is: To what extent do institutions explain the contrasting growth and development experience of China and Sub Saharan Africa (SSA) since 2000? Objectives: – Evaluate the importance of institutions to economic growth and development  – Apply the theory to explain the differences in economic growth between nations – Define what emerging markets is and how nations grow – Define institutions and why they’re important  Theory – the mechanisms of growth – Rostow’s Linear stage theory – Lewis’ dual economy – shift from agricultural to industrial – Harrod Domar – savings and investment  – Neo-classical – free markets? – classical growth theory – is there a limit to growth? – how growth and development are measured and the causes of it  – underlying causes of growth and particularly why some countries are able to grow faster than others – namely institutions. – resource curse and dependency theory – ideas that arguably explains poor growth performance in some developing countries – the importance of technology (Paul Romer) Applying theory – the Asian miracle and the ‘tigers’ – catch up growth  – explain the economic situation in China at the end of the 1970s – explain key areas of reform and policies to address specific problems and relate these reforms to institutional theories -Identify and explain the various SSA’s historical poor growth performance – explain the institutions and the nature of the state on development in SSA – explain the changing business environment in SSA countries – explain the opportunities and challenges that investors face in this changing environment  Link to some sources can be found in the attachment

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