Economic Growth And Economic Development

Economic development can be defined generally as involving an improvement in economic welfare, measured using a variety of indices, such as the Human Development Index (HDI). A developing country is described as a nation with a lower standard of living, underdeveloped industrial base, and a low HDI relative to other countries. There are several factors which may have the effect of limiting economic development in such countries. Factors such as these include: primary product dependency, the savings gap and political instability.

Economic development can be defined generally as involving an improvement in economic welfare, measured using a variety of indices, such as the Human Development Index (HDI). A developing country is described as a nation with a lower standard of living, underdeveloped industrial base, and a low HDI relative to other countries. There are several factors which may have the effect of limiting economic development in such countries. Factors such as these include: primary product dependency, the savings gap and political instability.

There has been Dispute on the most reliable way to measure Economic development. In this paper the measurement of Economic Development is the Human Development index (HDI), which is

Economic development is a new concept that came about in the early twentieth century. Although, theorists argue that Karl Marx has alluded to the concept earlier in 1887 . Historically, the increasing importance of the concept can be traced back to the needs approach of the ILO , World Bank and Amartya Sen’s Capability approach (Sen, 1993). Gerald Meier defines economic development as ‘the process whereby the real per capita income of a country increases over a long period of time - subject to the stipulation that the number below an absolute poverty line does not increase and that the distribution of income does not become more unequal’. Wherein, there is evidently a strong relationship between economic growth and development. This essay analysis the concept of the two terms economic growth and economic development by examining their characteristic approaches. In turn, understanding the relationship between them.

The global demographic trend has become a subject of discussion by researchers, policymakers, and the mass media. Economic performance in any country is, to a substantial degree, affected by the country’s demographic situation. In recent decades, the developed countries have been experiencing declining fertility rates that caused serious shortages of the workforce. Besides, the plunging fertility rates have led to the phenomenon called “ageing population” which has become a socio-economic reality in many developed countries and which has put a big strain on their pension systems. Furthermore, in 2014, there was a campaign tagged “Do it for Denmark” where Danes were encouraged to go for more babies to check the decreasing birth rates. On the other hand, the poor economic performance of especially developing economies is related to their demographic growth; therefore, funds are allocated for campaign against their population growth. The importance of the relationship between population growth and economic development has been well recognized by development economists. As Dawson and Tiffin (1998: 149) have pointed out, “most textbooks on economic development include a section on population and development”.

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

Economic growth is the percentage increase in real national output in a given time period or the increase in the productive potential of the economy. Countries grwo at different rates, this is partly due to the fact that they are at different stages of their economic cycle. The economic growth for the UK is at 0.2%.

Talking about the Endogenous growth model, it clarifies long-run economic growth as radiating from economic activities that make new technological knowledge.

High and sustainable economic growth is the main condition for the sustainability of economic development and increase prosperity. As the population increases each year, the consumption is also increasing. Further more, demand, supply and population growth also require employment growth as a new source of income, because if not so then economic growth will lead to poverty. Many economics literatures review the correlation between income inequality and economic growth and the results show that inequality negatively affected economic growth (Boushey and Price, 2014). Moreover, Ravallion (2014) argued that, particularly in developing countries, initial inequality and changes in inequality in the period of economic development influence economic growth. Economic growth can be derived from the growth in aggregate demand and aggregate supply. For that reason, income inequality should be at the forefront of many developing countries’ policy agenda, and this essay, on the other hand, focuses on how inequality in income affects economic growth, particularly in the aggregate demand side.

Nowadays, the various economic growth patterns are very common in both emerging and developed economy. The countries that are having most advanced economy and highly developed capital markets with high levels of liquidity is called developed country. Developed countries are mostly located in North America and Western Europe, including nations like the U.S, Germany, U.K., Canada, Australia, New Zealand and Japan. Emerging countries can be identifying with rapid growth rate and development but lower per capita than developed countries, namely Brazil, Russia, India, and China, Ireland, Italy, Greece, Spain. The economic growth of countries can be measured by gross domestic product (GDP) per capita.

Currently, the economic growth and development is improving the performance of the New Zealanders that has over the past 30 years made them part of the global market. This requires that Lush improve its performance in relation to standardisation. This demands that it balances its character of its products to maintain a local and international consumer appeal. This is important based on evidence from firms selling luxuries in the Chinese market where maintaining brand consistency has been core (Liu, et al., 2016, p. 360). As a corollary to this, Lush should appreciate that consumers desire to experience an enjoy life that can be compared to global levels in wellbeing. However, this should be done taking into account that New Zealanders value truthfulness in promotion that is key in brand identity. These should be underscored by strategies that improve brand knowledge that is important in attracting consumers through a local and internationally balanced appeal. Though not in the same industry, this has helped international universities increase their student populations in foreign countries (Hemsley-Brown, et al., 2016, p. 3020).

‘The framework presented here is based on the notion of population increase’ (Bucci 2009) with attention to the solow model and the AK model of economic growth. The differences and similarities in these growth models will be critically assessed with the use of empirical evidence to explain the real world economic growth patterns.

In answering the above question the author has considered the four macroeconomic objectives and these are:

As an important and popular issue in the field of economic research, it attracts many economists and there are many models to explain economic growth. In the history of the development of economic growth theories, there are three important stages which are the Classical Growth theory, the Neoclassical Growth theory and the Endogenous Growth theory. To start with, the Classical Growth theory is based on the Keynesian theory and the representative one is the Harrod–Domar model. It was put forward by Roy F. Harrod in 1939 and Domar in 1946. This is the first economic growth model, changing the research on economic growth from the qualitative to the quantitative. There are four exogenous parameters in the Harrod–Domar model: the capital - output ratio, saving rates, technological progress and population growth rate (Harrod, 1939). Harrod brought in the notion of three different growth. The first one is warranted growth (Gw), which means the growth rate when the investment can absorb all saving. The second one is natural growth (Gn), which is the rate to maintain full employment and determined by labor force. And the last one is actual growth (G), which can be determined by saving rate. The condition of stable growth is G=Gw=Gn. However, the condition cannot be met in the real world. As a result, the result of the Harrod–Domar model is the unstable growth (ibid). After that, Solow and Swan proposed the Solow-Swan model in 1956 separately, which belongs to

Education is the key to global economic growth and prosperity. For any educational institution to compete in the global market, it must invest in higher education in a manner that is productive, accountable and reactive to the contemporary needs of its population. Over the past decade, institutions of higher learning have experience a significant paradigm shift of the role of information technology. It has evolved from being solely a support function to becoming a leader in innovation for these institutions. This has allowed many to perform a system wide alignment of information technology with the institution’s larger vision and mission through developing a technology strategy.