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and manufacturing
Agr., manufacturing, and commerce
Primitive communism
Ancient slavery
Medieval feudalism
Industrial capitalism
Socialism and communism
or services
(features continued)
Redundant labor
Labor
Agricultural
Marginal
Product
Labor
Industrial
Marginal
Product
Marginal
product
curve
P1
P0
P2
P3
Profit
P
W
Wages
0
N3N2N1N0Labor
L0
L1
L2
L4
Labor
Why dependency?
Dependency theory
suggests that countries
become self-sufficient
History important
Political and social power important
Rule
of law
Enforceable property rights
Need to minimize policy distortions
Conclusions