Economic Growth and Development

3.Some economists suspect that one of the reasons that economies in developing countries so slowly is that they do not have well-developed financial markets. Does this argument make sense?

Economic development involves actions that are sustained and concerted by policy makers and the entire community. These actions lead to improved standards of living as well as the economic health within a specified area either in the local, regional or global environment. Economic development can also be termed as the qualitative and quantitative changes that occur within an economy. For economic development to take place there has to be contributions by various factors. Some these factors can lead to economic development if they are appropriately managed (Mohr, 2012). There is a lot of interest in macroeconomics when it comes to these factors of economic development. Macroeconomics deals with performance, behavior, structure and the entire decision making of an economy in general as opposed to looking at individual markets. This encompasses national, regional as well as the global economies. Through microeconomic there is the aggregation of indicators like GDP, price indexes and the rates of unemployment that enable the understanding of the functioning of the entire economy. This paper will look at various factors of economic development and how they contribute to economic development.

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 specific issues being studied are all linked to economic growth and financial development. The authors use a certain method to help them in their research. “After considering the panel characteristics of the dataset, long-run relationships among financial development, economic growth and

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”.

Previous literature has examined the economic causes and consequences of international and domestic financial sector liberalization. However, the political causes and consequences of economic liberalization have received less attention [Abiad2005]. Few theoretical work addresses whether an increase in financial liberalization leads to democratic transition [Milner2009, p175], or why large-scale policy changes regarding capital account liberalization took place in developing countries in 1990s [Cohen1996]. My research project addresses this gap in the literature. Using both formal theory and quantitative methods, I develop and test a unified theory that investigates the short-run and long-run political effects of international financial liberalization, and explains the causes, timing, speed, magnitude of liberalization.

Since the great recession ended more than five years ago, we have never truly recovered and are still facing slow economic growth to this day. Despite even the best efforts of the US government to reverse the situation, with its nine figure bailouts and lowering interest rates to nearly zero. These measures were made, one to try and make the government and two to try and stimulate the government to increase investment spending. Instead of this desire effect of banks’ lending out money and business expanding their business, the opposite seems to be true with most banks and business holding onto their money instead. This is caused mainly by banks and business lack of faith in the state of the current economy and its potential for future growth. I believe if the US economy is going to get back on track to where it wants to be in needs to increase government spending that can improve the economy over the long term. My plan is to spend 250 billion in direct spending on new and improved infrastructure, to spend 25 billion on a private/public infrastructure bank. Lastly increase funding for scientific research at agencies like the National Institutes of Health and the National Science Foundation. Even though there will be some short term benefits the main goal here is to increase long term outlook for the economy.

Economic 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 reason that the economy is experiencing this lackluster growth, and there are several terms necessary for understanding economic growth as it relates to the article. They will be introduced as we dissect the information presented.

For most of human history, life remained pretty much the same. The conditions of living were almost completely stagnant, and there was no such thing as economic growth to the general public. This all changed when two different events occurred that greatly impacted the course of history. The first of these being the British industrial revolution in 1750, and then the more prominent American industrial revolution in 1870. Acting like a catalyst, these two events created a boom of economic growth unlike anything the world had ever seen. As certain nations have continued to expand, an important question that arises is, is economic growth beneficial or harmful to society? Economic growth as defined as: “An increase in the amount of goods and services produced per head of the population over a period of time (The Oxford American College Dictionary)” is in no way a bad thing for society. The issue with this comes from the way we as humans use such this broad definition of economic growth as an indicator of wellbeing and happiness within a country, leading to misuse of wealth, as well as misplaced focus on important areas of life.

Numbers can say a lot about the economic health and general prosperity of a nation. But, as we 've learned in the case of Brazil and Costa Rica, some numbers can be far more important than others. Even if your country is experiencing phenomenal economic growth, its people may be suffering. In many cases, economic development is needed before economic growth can make a real difference. High economic growth can even hurt the people, especially those in poverty, if the country has not reached a certain level of economic development. This analysis of Brazil and Costa Rica seeks to define, compare, and contrast economic development and economic growth and their presence and affect on the two countries.

More economically developed countries (MEDC) - Countries with sovereign states and that has a highly developed economy with advanced technological industries as compared to other countries. The Human Development index, standard of living as well as the Gross national product of these economies is on the upper level of every chart. According to the International Monetary Fund, advanced economies comprise 60.8% of global nominal GDP and 42.9% of global GDP (PPP) in 2014.

Economic growth refers to an increase in the capacity for an economy to produce goods and services as compared from one period of time to another. It can be measured either in nominal terms which include inflation, or in real terms that are adjusted for inflation. It is mainly influenced by unemployment, inflation, technology levels, rate of investment, population growth rate, among other factors. These factors are used further to explain the differences in the varying level of output per capita between and among countries, and explain why some countries are economically growing faster than others. These factors are best represented in both the theoretical and empirical forms through the neoclassical endogenous growth models (Steil, 2013, n.p.).

The Impact on Economic Growth through the Process of the Financial Liberalization of Developing Countries

The long history of ideas on economic growth started from the classical economists like Adam Smith, Robert Malthus, Ricardo and Marx. For more than three decades the Neoclassical and the Endogenous Growth theories were arguing and forwarding economic reasons on trend of economic growth through investment as a general and private investment in particular. Though there are various theories, as mentioned above, regarding economic growth, in this section we will address the most commonly applied models: the classical theory of economic growth, Harrod–domar Growth model, The Neoclassical and Endogenous Growth Models.

Belize’s development is an important economical, environmental, and political issue which continues to be the subject of discussion. Historically, Belize has passed through many stages of development, originating from a hunter and gathering society, during the Mayan revolution, to a post industrial society, following the advent of computers. Technological improvements, freedom of trade and the creation of a global market are some factors that have fuelled this rapid rate of development. The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. Belize has experienced times of economic prosperity, recording 8055.43 USD per capita GDP in 2014 and has had economic hardships of 5168.29 USD per capita GDP in 1990. Currently, Belize is experiencing what economist term a negative growth, recording a GDP of -1.2 Percent. Economic development is “the process by which a nation improves the economic, political, and social well-being of its people”. Economic development in any country is necessary for the quality of life and standard of living to be improved. The term “impact” must be considered in relation to development and the environment. Every form of development has a cost or environmental risk associated with it. In the 1980’s, there was a shift to a new kind of development often termed an alternate development. The establishment of the Brundtland Commission paved the pathway for future aggressive plans designed to