Factor Endowments, Inequality, and Developmental Paths among New World Economies

Topics: Future, Sociology, Present Pages: 1 (325 words) Published: June 19, 2013
First Section
From “Factor Endownments, Inequility, and Paths of Development among New World Economies”, the research question for this article is that the author would like to identify how geographic factor and factor endowments affect the path of development from the Old World to the New World with the evolvement of the institution. Why did the country become poorer after wealthy in the past. The hypothesis explains how the great equality and the extreme inequality among the population in societies affect systematic discrepancies in the way institution being evolved overtime. The methodology that the researcher applied from historical paths of institutional and economic development in order to comprehend the social system and the degree of economic inequality across countries. As a result, the country with high degree of inequality in the past tended to have institution that constraint the way to access to economic opportunity in the present. However, the country that begins with great equality in the societies tended to have institution which provides more access to economic opportunity today. Second Section

The similarities of two articles these are that the researcher wants to know how the difference institutions have an effect on the path of economic development from the past to the future economies. And the differences are that the article of Engerman and Sokoloff identify the difference institution in the past affect the path of economic development in the present economies by looking at geography and factor endowment whereas the article of Acemoglu, Daron, Simon Johnson, and James A. Robinson looking at the differences in institutions and property right to forecast for the economic performance. For me, I would prefer the argument of Engerman and Sokoloff because it is through that the inequality from the past is persist and it is not seem to be cover by any institution and I think this is affect the development in the economic a lot as we also can...
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