Saturday, May 16, 2020

Economic Growth Essay - 696 Words

Economic Growth Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of†¦show more content†¦Real GDP is measured by the following formula; [(current year quantity) x (based year price)]. A more reliable measure of economic growth is real GDP per capita; this measurement takes into account both the total production of the nation and the total population. Real GDP per capita measures the real income per head of the population. This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation. The promotion of education and job training schemes increase the knowledge, skills and flexibility of the workforce that contributes to potentially higher levels of productivity and efficiency. Whether from natural increase or immigration population growth can cause a higher level of economic growth. An increasing population re quires increased public spending on housing, education and other social needs while businesses expectations ofShow MoreRelatedEconomic Growth. Economic Growth Is A Topic Constantly1059 Words   |  5 Pages Economic Growth Economic growth is a topic constantly discussed in Why Nations Fail by Daron Acemoglu and James A. Robinson and Saving Capitalism by Robert B. Reich .The authors in both books seem to believe that we live in a society in which economic growth is not at its finest, but there is still hope. More detailed, Daron Acemoglu and James A. Robinson blame extractive institutions for the slow growth because in this occasion the political and economic systems are structuresRead MoreThe Growth Model And Economic Growth1072 Words   |  5 PagesEndogenous growth model, it clarifies long-run economic growth as radiating from economic activities that make new technological knowledge. Endogenous growth can be explained as long-run economic growth at a rate dictated by factors that are internal to the economic framework, especially those factors administering the opportunities and motivators to create technological knowl-edge. Over the long run, the pace of economic growth, as determined by the output per individual growth rate, reliesRead MoreEconomics : Economic Growth And Environment Essay1760 Words   |  8 PagesEconomic Growth and Environment Professor: Wuu-Long Lin Student: Yin-Chun Chou Student ID: 11602318 Table of Content 1. Introduction 2. Review of the literature 3. The methodology used in the study - Environmental Kuznets Curves 4. Analysis 4.1 Industrial Ecology 4.2 Is Environmental Protection Too Expensive? 4.3 Does Environmental Protection Reduce Economic Growth? 5. Policy Recommendation List of References 1. Introduction The natural environment is the foundationRead MoreEconomic Growth And Economic Development1328 Words   |  6 PagesEconomic growth is an economic term to describe an increase in a country’s national earnings of wealth, or the growth of Gross Domestic Product (GDP) (Swanenberg,2005). The measurement of economic growth is possible that the change in national income in comparison to the numbers held by the year before. In the world today, economic growth is one of the ways to determine how successful is the country’s economic activity (Swanenberg, 2005). This is explained by the fact that economic growth reflectsRead MoreEconomic Growth And Economic Development1177 Words   |  5 PagesEconomic growth and Economic Development is of the highest priority in regards to a well-functioning sovereign state. Economic growth powers an economy through the stability ensured by equilibrium in the circular flow of money accompanied by: growing international competitiveness in a globalised market, increase in real GDP through the appropriate allocation of resources most suited to the expansion of the economy, increase in aggregate demand and increased efficiency in the economy. Stagnation orRead MoreEssay on India China Economic Growth906 Words   |  4 PagesMAIN CATALYSTS TO GROWTH IN CHINA AND INDIA. India with about 1.2 million populations and china with about 1.3 billon population are two big demographic and emerging countries in the world .Over a past few decade India’s combination into the economic has been accompanied by remarkable economic growth (World Bank 2011 ¬).India is having the 3th position on the economy in purchasing power parity (PPP) terms (The Economic Times, 2012). India’s total GDP (gross Domestic Product) growth was 5.5% in 2012Read MoreEconomic Growth Of The Economy1506 Words   |  7 PagesEconomic growth rate can be measured as an increase in the capacity of an economy to produce goods and services, compared from one period of time to another (Investopedia). Ylan Mui and Nelson Schwartz offer information on what is stagnating our nation’s economic growth. Many have been looking at the economic growth of the third quarter very disheartened. U.S. economic growth during the third quarter expanded at a 1.5% rate, which is considerably lower than the last quarter. There are many reasonRead MoreEconomic Impact Of Economic Freedom On Economic Growth1403 Words   |  6 Pagesof economic freedom have dominated the economic theories as the best way to economic development, Many economists and politicians believe that economic freedom displays a significantly positive effect on economic growth, while others believe that the increased freedom will have a negative effects on economic growth. In addition, all of the international organizations such as the World Bank and the International Monetary Fund (IMF) encourage developing countries to follow the freedom economic policiesRead MoreA Study On Economic Growth877 Words   |  4 Pagesstart thinking about economic growth, it is hard to think about anything else.† (On the Mechanics of Economic Development) This is a subject that has been studied by many economists over the years. Economic growth is important to understand because it relates to how people will live along with how society will succeed in the future. â€Å"Without economic growth, higher income levels and living standards cannot be achieved.† (Macroeconomics) What is economic growth? Economic growth is the increase ofRead MoreLiberalization And The Economic Growth2232 Words   |  9 PagesLiberalization or the 1991 economic reforms marks 25 years this year. Debates continues on whether growth precede or followed liberalization. India has experienced unprecedented growth over the past three decades. However this growth has co-existed with increase in inequality, unemployment across the country as certain regions, sectors and social groups have disproportionately benefitted from the growth. At least 38 percent in India continue to live below the national poverty lines (Ruparelia et

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.