What types of products does Samsung trade?

introduction With the lection of new technology into both agri the former PPF, The stry, a new productilustry and the ical efficiency change, axis and tow w mix of action possibile Shifted from low marginal produ anufacturing. The share of both total zero marginal er of labor from agriculture to industry and the into both agriculture and industry, a new production pour Les outside the former PPF. The new mix of proxluction at, say, B, both along the industry axis and toward the new PPF, fronti ard the new PPF frontier as a result ency change, as resources are better utilized, especially labor, which inal productivity uses in agriculture to higher productivity occupations both total production and total employment in manufacturing curve, PPF, emerges that lie involves a movement both of positive technical rise over the transition 24 It is precisely these sorts of orts of transformations that lead to higher levels of income and the stage for the ongoing policy shifts discussed in the next chapter nelopment, and set the stage for the ongoing policy shito higher levels of QUESTIONS AND EXERCISES Table 9.1 suggests a strong po and the rate of growth and three countries. In th growth rates. ggests a strong positive correlation between the rate of growth of the industrial sector se of growth of total gross domestic product (GDP), but this is shown only for regions countries. In this exercise, you will further consider the relationship between these + four less-developed countries other than China, India, or Korea, and record for each the of growth of industry and the rate of growth of GDP for at least two periods. You can cally find the data in Table 4.1 in the World Development Indicators available online at http:// ardhank.org. If this source is not available, check elsewhere on the World Bank website or another source for the data. Using this data, draw a graph with the industry growth rate” on the horizontal axis and the growth rate of GDP” on the vertical axis. For each country, show te specific industry growth rate and its growth rate of GDP as one point on your graph for each of the time periods for which you have data.

Do you see any relationship between the two variables? Draw a straight line through the points you have graphed. Does it have a positive or a negative slope? What does that positive or negative slope tell you? Are the industry growth rate and the GDP growth rate systematically related to one another in your data? (If you have access to Excel or some simple regression program, you can put the data in two columns, one for the growth rate of industry and the other for the growth of GDP; use a scatter diagram to show the data. You can have Excel draw a trend line for you.) will demonstrate the gains to total national output from a better distribution of an economy’s labor force to higher productivity activities. developed country that interests you or one you are assigned. If you wish, you can countries for which you collected data in the previous problem. Find the following: use one of the countries for which 345 THE STRUCTURAL TRANSFORMATION Table 1 Industrialization and economic growth annual percentage growth of constant GDP and industry) Industry GDP 1980-90 1990- 2000- 1980-90 1990- 2000 2010 2000 2010 10.9 8.0 10.2 East Asia and Pacific 7.5 3.1 11 3.0 0.6 Latin America and 3.2 Caribbean Middle East/North 4.1 3.5 3.1 3.8 4.7 Africa South Asia 7.0 6.0 8.1 5.6 7.4 1.1 4.9 1.9 Sub-Saharan Africa 29 2.5 5.0 11.8 13.7 9.3 10.6 China 10.8 6.1 India 8.5 5.9 5.8 8.0 South Korea 10.9 6.0 8.7 5.8 3.8 5.5 9.5 7.1 5.4 Sources: World Bank, World Development Indicators Online World Development Indicators, 2012. Table correlation between the rate of growth of total output and the pace of industrial growth, though the direction of causation is certainly not proven by this data. If one disaggregates further to look at the link between industrial growth and the growth of total GDP for specific countries, the relationship is also positive, as shown for China, India, and South Korea in the last lines of the table. More rapid industrial growth tends to be associated with more robust GDP growth, though again the direction of cassation is not defined, and it most likely is two-way. Looking at China, for example, as the rate of industrial growth rose from 9.5 percent annually in the 1980s to 13.7 percent in the 1990s, GDP growth increased from 9.3 percent to 10.6 percent per year. After 2000, the growth of industry continued to lead the growth in GDP.

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