This paper presents a modern comprehensive analysis of the models of growth, explores main drivers of growth, and discover the mechanism of the influence of the financial liberalization on the long-term economic development of a country.
The long term economic growth and development for any country or region in the world is an important subject for all students of sociology, economics and even history since economic development affects all systems that can be found in a political entity. Even in recent years, countries such as Japan that had been destroyed by the ravages of the Second World War and had little to go on in terms of natural resources were able to become economic giants and global economic players. However, such developments could not be emulated by other countries in Latin America and Africa for a multitude of reasons.
It seems that labour, economic production output as well as national saving levels are all drivers of economic growth but the overall factor which produces these variables in different quantities is government policy and the economic system that is in place in a given country. A country may follow the practice of becoming more liberal in financial terms and having less stringent controls on the way in which entrepreneurs acquire capital but this does not necessarily mean that economic growth will happen the way the government wants it to happen. Financial liberalization has several advantages and disadvantages which are directly connected with the needs of developing countries.
This essay critically evaluates the impact of the financial liberalisation on the economic growth of developing countries. The theoretical foundations, concerned with the development of an economic system, are considered. Development patterns of one country can not be simply emulated by other ones…
An increase in economic growth is supposed to raise the average standard of living of the people. While studying economic growth theory, it is important to differentiate between short term and long term ups and downs. Potential GDP in a nation is determined by the aggregate labor, capital and technology available and is often identified as the long term growth (Taylor, 125).
Economic growth is one of the major macroeconomic objectives. Economic growth is regarded as a necessary and desirable feature of modern economies . Economic growth is widely defined as ‘the sustained increase in real per capita incomes’ .
Economic growth slows down mortality rates by elimination of factors such as malnutrition and insecure health standards by the elites. On the other hand, high population dispirits economic development through retreating returns. The dynamic relationship between economic and population growth is based on the Malthusian model, implying a fixed population in the long run equilibrium (Becker 146).
The prevalence of capitalist mindset suggests that the owners incur profits at the expense of laborers which cause a sharp gap in the rural-urban wages, leading to sharp inequalities. As a result, individuals shift to cities to reduce this inequality which would ultimately increase the population in urban areas as compared to rural.
Microeconomic Essay Name Institution Factors that affect the long-run rate of economic growth When factors of production are increased in terms of quantity and quality, there is a resultant Long-run economic growth. These factors of production are: natural resources, capital resources, labor resources and Entrepreneurship.
However, the real GDP per person in the country more than doubled between 1963 and 2003 (Parkin 425). In the rest of the world, specifically Asia, the growth in real GDP was even greater.
Specifically, a look at the world's seven biggest economies (United States, Japan, Canada, France, Germany, Italy and United Kingdom) shows that real GDP per person has grown steadily from 1963 to 2003.
It was a policy commonly used in developing economies in Tanzania, Latin America, and East Asia during the cold war. In a ‘developmental state’ government-established comprehensive programs direct all economic activity and productive. Likewise, the policy
The report also highlights the economic outlook and forecasts of Israel through the analysis of relevant economic parameters provided by OECD. It was found that though Israel’s economic growth slowed down in 2014, but it again picked up at the end of the year and has been experiencing positive growth since then due to substantial investments.
7 pages (1750 words)Essay
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