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Abstract
The paper examines how Kuznets' Six Characteristics of Economic Development have evolved in Ecuador, Colombia, and Venezuela, once part of Gran Colombia. It explains these six characteristics of economic development which are: high growth rate of per capita income, which is GDP/population, high growth rates in Total Factor Productivity (TFP), which looks at the means of production such as capital, enterprise, land, and labor, higher growth rate of structural transformation, or the move away from the agricultural sector, high rates of social, political, and ideological transformation in the economy, which means the political changes, ability or propensity (tendency) to reach out to external markets and opportunities, or participation in international trade, and economic growth leads to higher equal distribution of income, or equal international distribution. Ecuador, Colombia, and Venezuela are examined according to Kuznets' Six Characteristics of Economic Development, in order to understand how the economic growth has progressed. For instance, comparing the political changes under Correa in Ecuador and Chavez in Venezuela, or looking at how Colombia has increased its international trade. All six of these characteristics have played a role in economic growth in them, to better understand if there could be a relationship due to the similar characteristics of the countries.
Key Words : Kuznets' Hexa Characteristics, Total factor Productivity, Economic Development Comparatistics
Economic development across the globe is often related to the countries' locations, history, and cultural similarities. For instance, during the 1800s, many Spanish colonies in Central and South America began to fight for their independence including Gran Colombia. Today, the former Gran Colombia makes up modern day Colombia, Ecuador, and Venezuela. While these countries were once one country, they have since separated, creating their own individual history, culture, and economy. However, there are ties between these countries, which could have an effect on all three economies. The purpose of this paper is to look at how Kuznets' Six Characteristics of Economic Development have shown themselves in Ecuador, Colombia, and Venezuela and also, compare how the economic development has taken place.
understand the importance of the Six Characteristics, which go beyond economics but also into politics ad location, but how each country has developed in a similar fashion but yet with slight differences.
To begin, Ecuador has...