Economic Growth And Development Of The Asian Nics, India, China

Economic growth, put simply, is “an increase in the amount of goods and services produced per head of the population over a period of time”; development is inextricably linked with this economic growth. By utilising theories of economic growth and development we can see how the Chinese and Sub-Saharan African economies have emerged, but, more notably, we can use these to look at patterns from past and present to show their experience and the implications of this growth for the future.

So we see that on the other hard there are some situations where population growth can hamper economic development. This seems to focus more on the poorer countries of the world, which is probably due to more of a lack of resources. Also noted by Cincotta & Robert (1997), results of an elaborate study found that the correlation between stagnant economic growth and economic strength is the most prevalent among developing nations of the world. In other words, stagnate economic growth can be attributed to population growth as well, which as previously noted is an antithesis to this paper, but to point out, this heavily relates countries with a below average gross domestic

There has been a debate over the past century between economists as to what economic policies are able to develop the most prosperity for developing countries. Some economists believe that larger state influence and oversight over the economy are able to yield better results, while other economists contend that free market economies with little government are able to generate results. In the piece, Commanding Heights, Yergin and Stanislaw state that the two sides to the “Battle of Ideas” are the sides of liberalism and conservatism. However, according to Goldstein and Pevehouse, developing countries have in fact employed a myriad of different economic policies to help spur growth such as import substitution, export led growth and foreign investment.

When investigating the global state of poverty and prosperity there is clear difference between the wealthy nations and impoverished nations. In the past decades there has been an increase in economic polarity between the developed and developing nations of the world. Some nations are prospering greatly while others countries are still struggling to achieve, economic, political, and social stability. The book Why Nations Fail: The Origins of Power, Prosperity and Poverty by Daron Acemoglu and James A. Robinson attempts to explain why some nations have seen great success in their economic and political development, and why other nations are still failing to develop in this way. The arguments derived come from the key themes in chapters 3, 8, 9 and 15 of Acemoglu and Robinson’s book.

In his first chapter he starts off about why growth even matters. Economic growth frees the poor from hunger and diseases. Economy wide growth in GDP per capita translates into rise in incomes for the poorest of the poor lifting them out of poverty. Taking the example of Pakistan, the author describes how 31% of the country lives in extreme poverty with incomes less than $1 a day. Infant mortality, hunger, debt bondage are directly associated with income.

Economic growth and inequality has been a long debated topic but is more important in the recent decades as income inequality has dramatically grown within many countries; the implications on these can hinder social and political development. Economic growth and its link to Equality can help create stability for an economy and improve living standards in the long run. More directly it allows people to be able to contribute and engage in the economy as it provides the opportunity for employment, investment and savings as well as consumption (Gehring & Kulkarni, 2006). These opportunities are channelled through the drivers of economic growth that increase factors of production (Human Capital, Technology and Institutions), as a result the relationship between growth and inequality are evident in the functioning of the labour market. Many of the theoretical and empirical studies that explore the relationship between inequality and growth have so far been disappointing and inconclusive. One of the reasons for this is the emergence of the different types of inequality that affect growth which is inequality of opportunity and effort, therefore the relationship can be positive or negative based on the type of inequality, so it’s important to explore the theory behind inequality of income, opportunity and intergenerational mobility as the answer to the question embedded in each (Bradbury & Triest, 2014).

Perkins delivers his observation of similarities and differences in economic development of Northeast and Southeast Asia with simple but comprehensive explanation. His book is insightful and easy to follow, starts from all countries’ cultural history background to other factors, such as natural resources, geography, institution, education, and industrialisation development. However, there are some critics on the book due to the less emphasizing on equality, inclusiveness, and transition of agriculture sector development.

Most countries in the world today have become developed and while Cameroon and many underdeveloped countries have remained poor, but could become develop because Development economic and Solow`s growth theory have proven that all countries can become develop. Developed countries were also poor some years ago but have become developed over time. The wide gap between developed and underdeveloped countries shows that, underdeveloped countries are not making enough efforts to become develop. Therefore, this paper seeks to analyze the reasons why Cameroon has remained underdeveloped. An analysis on how other countries have become developed proves that Cameroon can also become developed so possible solutions on how it can be become developed is examined. To examine if Cameroon could also become developed, a brief analysis is done on how other countries have become developed, and a comparison is done between Cameroon and South Africa. The results shows that, Cameroon can become develop if the adopt development economics theories properly. These theories show how underdeveloped countries can become developed with time. Cameroon can become developed if they adopt these development economic theories properly.

Respect for private property rights, free markets, and the rule of law are often do cited as fundamental to economic development. However, many countries well in some of these indicators but still lag behind, development wise. This paper seeks to investigate factors that lead to economic growth without economic development, using Botswana as a case study. From around independence 1966 to 1995, Botswana was the fastest growing country in the world. During those three decades Botswana’s average annual growth rate was 9% percent, and she graduated from being the third poorest nation in the world to being an “upper middle income”.

As pointed out by Sodersten and Reed(1994), this is a theory of long-term general equilibrium in which two factors of production labour and capital are both mobile between sectors. Hereafter, further theory came which described the “new growth theory”. It originated from the mechanism through which exports affect economic growth. For instance, Grossman and Helpman (1990) proposed a two-country growth model with endogenous technological progress. In their model, exports help to promote technology and knowledge diffusion and thus in recent period, the extensive literature concerning the relationship between trade and growth is also the consequence of the many changes that have taken place in the fields of development economics and international trade policy. An example of these changes is the tremendous modification from inward oriented policies to export promotion strategy. By the early 1980s export-led orientation and export promotion had already secured a wide consensus among researchers and policy makers, to such an extent that they had become “conventional wisdom” among most economists in the developing world (Tyler, 1981; Balassa, 1985). This strategy is still advocated by some international organizations, the international bank community and multilateral lenders such as the World Bank and the International Monetary Fund (IMF), and among the mainstream policy makers.

Eyeballing any cross sectional data on growth across countries shows that countries grow at different rates. Many theories try to explain this phenomenon with emphasis with capital accumulation being one of them. I will start by developing the standard neoclassical growth model as developed by Solow(1956)[1]. I will then proceed to discuss the extensions that have been made to this basic model in an attempt to better understand actual growth figures, for e.g. the standard neoclassical model cannot explain the magnitude of international differences in growth rates. Mankiw[2] points out that “the model can explain

The growth of the Asian Economy has had positive structural effects on the Australian Economy. The trade volumes are at record high levels with China and the appreciation of the exchange rates have provided a boost to the economy. There has also been a rise in the resource investment, which has seen a reallocation of factors of production, which has lead to employment growth in these sectors. The focus of the Asian economies is on the production and consumption of goods and the commodity intensive nature of this rise has led to an increase in commodity prices. This has led to an increase in the productive capacity, which supports the exports, employment, incomes, taxes and wealth of the Australian population. The strength of the resource sector has had a positive effects on the exchange rate which when combined with the stable inflation rate has led to a significant increase in wage dollar of the working population (Plumb, Kent, & Bishop, Implications for the Australian Economy of Strong Growth in Asia, 2013).

In recent years, one of the major concerns of economic development is the study of poverty, the income distribution and growth in the less developed countries (LDC’s) or Third World countries. Economists from all over the world have been doing researches and studies on how to induce a growth in those underdeveloped countries. However, countries differentiate in historical backgrounds, cultural believes and natural resources. As a result, the government would implement different strategies to attain a much fairer distribution of income among the society. The relationship between the income distribution and growth in the LDC’s is a significant factor that would affect

February 10, 2009 The purpose of this note is to define the meaning of the term ‘inclusive’ growth. It is often used interchangeably with a suite of other terms, including ‘broad-based growth’, ‘shared growth’, and ‘pro-poor growth’. The paper clarifies the distinctions between these terms as well as highlights similarities.

The question of why and how the developing world has since been developing at a relatively low pace has since been interpreted by various perspectives most of which are Euro-centric and highly debatable. A number of theories have since been formulated to explain why the developing countries are lagging behind in terms of their Gross Domestic Product (GDP) and Gross National Product (GNP) are low. Some theorists such as Todaro and Smith (2009) went the extent of trying to understand why there is always a glaring gap of development between the developed countries and the