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1) What do you know about political economy ? How do you distinguish And connect between politics And economy? 2) High levels of corruption and weak government institutions are associated with poor economic conditions—low levels of income, low growth rates, inequality. Propose a theory that relates weak governments and poor economic performance. Which way does the causal arrow go—from low growth to high levels of corruption or from high levels of corruption to low growth, or does it go both ways? Design a empirical test to try to sort out the conflicting empirical claims. 3) Some countries appear to suffer from a “resource curse”. They have plentiful natural resources but either do not grow or maintain high levels of poverty and inequality. What are the political/economic explanations for this phenomenon? How might it be “cured”?
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