Government's Policies and Economic Development - Essay Example

Only on StudentShare

Extract of sample
Government's Policies and Economic Development

Problems faced by developing & transition economies, in which more markets are lacking, the markets that do exist may function less effectively, and information problems are more severe than in industrial countries simply because of the rapid change in the economic environment. While markets failures loom larger over this developing and transition economies, the capacity of the government to correct these market failures is often weaker. So the question arises is what should have been the role of the government in the past two decades. Assessing the appropriate role of the government requires the recognition of both the need for and the limitation of the government action.
Successful governments have helped create markets such as bond and stock markets and long- term credit institution. They have established and enforced laws and regulations that have financial markets more stable and increased competition in all sectors. In many cases government has acted as a surrogate entrepreneur, encouraging the firms to enter the certain markets. Especially in export markets governments have provided firms with strong incentives. ...
Download paper


In the past two decades economies of the world have taken different approaches to improve the standard of living. Government plays a major role in developing an economy. Polices made by government have a great impact on the economic structure of the country…
Author : morissettejo

Related Essays

The Relationship Between Institutions and Economic Development.
Neoclassical growth theory limits to identify the prerequisites of economic performance, such as capital accumulation and technical progress. To explain why people save, invest, learn and seek knowledge, different institutional systems and values ?that success or failures are based on must be paid special attention. The relationship between institutions and economic growth has been a central debate of the economic arena for a long time. A century ago, the free society realized that the institutional system plays a fundamental role in economic development-no longer seen as an inevitable gradual...
8 pages (2008 words) Essay
China Economic Development
China's transition from a centrally planned economy to a market-oriented one is special and unique. Chinese government creates its own path of transition rather than just using a "blueprint" or "recipe" from Western advisors. The Chinese government has been always attempting to privatize its state-owned assets gradually rather than a "big bang" like that undertaken by Russia and some other former Soviet Union countries. To prevent potential social unrest from radical privatization, Chinese government retains a large portion (more than 30%) of state-owned shares in listed SOEs. Thus, the number...
48 pages (12048 words) Dissertation
Economic Development of Greece
Economic development attempts to find the reasons behind the labour differences between countries or it may analyse why certain countries have higher levels of foreign investments compare to others. (Gills, 1996)
12 pages (3012 words) Essay
Economic Development of China
The interpretation of the results of this study is subject to four limitations. First, the classification of state-share holders based on their names is not good enough to distinguish GA shareholders and corporate state-share holders perfectly. For example, most state assets operating companies use the name of "State Assets Operating Company", such as "Jiangsu State Assets Operating Company". But some operating companies, which should be classified as GA shareholders, could use other names and then are classified as corporate state-share holders in this study.
47 pages (11797 words) Dissertation
Chinese Economic Development
The large scale of foreign direct investment which has entered into Chinese markets, could improve the economic development of eastern coastal areas through accelerating the formation and centralization of capital, Technology Overflows, upgrading of the industrials structure and the human capital formation. On the contrary, the fast speed of the economic development of eastern parts would also increase the earning of the local residents, enlarging the demand of the market, improving the Total Factor Productivity, promoting the external environment and reducing costs, which could possibly bring...
24 pages (6024 words) Coursework
Economic Development of Kenya and Singapore Case Study
Chapter one examines Kenya's shortcomings in its bid for development and economic growth while chapter two analyses what earmarks Singapore's success.
19 pages (4769 words) Case Study
Got a tricky question? Receive an answer from students like you! Try us!