Economic Growth And Economic Development - 917 Words

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.). Economic growth revolves around business cycle which include the following phases; depression, growth or expansion, boom and recession. During economic downfalls such as recession and depression phases, it is evident that aggregate demand for both goods and services might be insufficient thus leading to unnecessarily high unemployment rates, low investments and potential losses of economic output. At this phase the economy of a country goes down as some of the investments and savings are used to cater for other basic necessities. Inflation also pins down the growth further as the purchasing power of the current level of income is greatly reduced. As explained by the IS/LM model in the general theory by John Hicks, there are someShow MoreRelatedEconomic Development And Economic Growth915 Words   |  4 Pagesagenda? 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 thatRead MoreEconomic Growth And Economic Development1177 Words   |  5 PagesEconomic growth and Economic Development is of the highest priority in regards to a well-functioning sovereign state. Economic growth powers an economy through the stability ensured by equilibrium in the circular flow of money accompanied by: growing international competitiveness in a globalised market, increase in real GDP through the appropriate allocation of resources most suited to the expansion of the economy, increa se in aggregate demand and increased efficiency in the economy. Stagnation orRead MoreEconomic Development And Economic Growth1664 Words   |  7 PagesEconomic development has the potential to transform regions as it creates an enabling environment for economic growth. Economic development is also associated with expanding the capacity of individuals and communities to maximize the use of their available resources. The extent of economic growth depends on the type of the additional products that the economy produces from its investment projects. It has been an instrumental aspect in the growth of Cincinnati. Cincinnati is comprised of a diverseRead MoreEconomic Growth And Economic Development915 Words   |  4 PagesEconomic development is the development of economic wealth of countries, regions or communities for the well-being of their inhabitants. From a policy perspective, economic development can be defined as efforts that seek to improve the economic well-being and quality of life for a community by creating and/or retaining jobs and supporting or growing incomes and the tax base. Overview There are significant differences between economic growth and economic development. The term economic growth refersRead MoreEconomic Growth And Economic Development2287 Words   |  10 PagesIn Asia, the economic growth has been phenomenal and the deepening of economic integration and larger trade volumes have led to both developed and developing nations to experience steady economic growth, especially at 10.1% in 2007 (ADB, 2015). Nevertheless, especially with China’s economic slowdown, the Asian region is facing problems such as decrease in labor force, labor productivity, and overall trade growth (ADB Report, 2015). In order to consolidate economic integration of the region, the ASEANRead MoreEconomic Growth And Economic Development1328 Words   |  6 PagesEconomic growth is an economic term to describe an increase in a country’s national earnings of wealth, or the growth of Gross Domestic Product (GDP) (Swanenberg,2005). The measurement of economic growth is poss ible that the change in national income in comparison to the numbers held by the year before. In the world today, economic growth is one of the ways to determine how successful is the country’s economic activity (Swanenberg, 2005). This is explained by the fact that economic growth reflectsRead MoreEconomic Growth and Development1547 Words   |  6 Pagesï » ¿ECONOMIC DEVELOPMENT AND GROWTH Economic development and growth may not be the same thing depending on how growth rate is affecting the countrys socio-economic development. However important and well known theories of macro-economic suggest that if markets are left on their own, people will improve their socio-economic wellbeing automatically as the result of better economic growth rate of the country. In other words, financial liberalization automatically leads to socio-economic uplift as suggestedRead MoreEconomic Growth and Development2951 Words   |  12 Pagescountry? Surveys are made and reports being churned out that state the economic growth of a nation. Does the rate of this economic growth a true indicator in this regard? If that is true why is it then that even in the 21st century decades after the industrialization and years after globalization the proportion of developed countries to under-developed countries is still wide enough? The answer lies in the economic development of these countries. If the gross domestic product or national incomeRead MoreEconomic Growth and Development1990 Words   |  8 PagesECONOMIC GROWTH AND DEVELOPMENT Introduction Economies grow and develop, they expand and advance, and they progress and prosper. There are phases when they decline too, and there are economies that experience continuous decay. If one considers long stretches of human history, one knows that economies (civilizations) disappeared altogether. We will not take into account such long stretches of time. We shall not consider too distant a past either. We will leave them to historians, may be, economicRead MoreThe Economic Growth And Development864 Words   |  4 PagesCurrently, 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 c onsistency has been core (Liu