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Impact of technological advancements
Impact of technological advancements
Impact of technological advancements
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Economic Growth is the increase per capita gross domestic product (GDP). There is a distinction between nominal and real economic growth, where the first is the growth rate including inflation, while the second is the nominal rate adjusted for inflation. Moreover economic theorists distinguish short-term economic stabilization and long-term economic growth. The topic of economic growth is mainly related to the long run. Short-run variation of economic growth is termed the business cycle. The long-run path of economic growth is one of the central questions of economics.
In 1377, the Arabian economic thinker Ibn Khaldun provided one of the earliest descriptions of economic growth in his Muqaddimah (known as Prolegomena in the Western world) (cited in Weiss, 1995):
When civilization [population] increases, the available labor again increases. In turn, luxury again increases in correspondence with the increasing profit, and the customs and needs of luxury increase. Crafts are created to obtain luxury products. The value realized from them increases, and, as a result, profits are again multiplied in the town. Production there is thriving even more than before. And so it goes with the second and third increase. All the additional labor serves luxury and wealth, in contrast to the original labor that served the necessity of life.
Economic growth is an important part of economic theory and one of the most significant problems economists tried to explain is the differences of growth rates of countries. Economic growth has been discussed since the time of physiocrats and Adam Smith. In his book “Wealth of Nations” (1776), Adam Smith mentioned economic growth as the improving and increasing of capital. David Ricardo in “The Theory of Com...
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...baldi et al. (2008) analyze the role of institutions and innovation in economic growth. The model examines how institutional constraints affect growth rates and sets a framework to study the interactions between institutions and human capital. Their work emphasizes on the effects of the quality of institutions on the allocation of human capital to the research and development and in case of economies with poor institutions how human capital influences growth. Through their analysis, they were able to find that long run growth rate is influenced by the growth rate of innovation which is also determined by the growth of institutions. On the other hand, in the short run, if institutions are not able to follow innovation in the path of change, putting therefore barriers in growth, the growth rate of the economy will decrease and so innovation will slow down as well.
Smith, A. (1904). An Inquiry into the Nature and Causes of the Wealth of Nations (5th Ed.). (e. Edwin Cannan, Ed.) London: Methuen & Co., Ltd.
1. What is the difference between a. and a. Economists use real GDP per capita to measure economic growth because it ignores the effect of price changes. B. Because poor nations have a large population and the population of richer nations is declining. C) because it is the inflation-adjusted value of a country's production of goods and services corrected for the change in a country's population. D) even though nominal GNP per capita is a far superior measure of economic growth.
Robert E. Lucas Jr.’s journal article, “Some Macroeconomics for the 21st Century” in the Journal of Economic Perspectives, uses both his own and other economist’s models to track and predict economic industrialization and growth by per capita income. Using models of growth on a country wide basis, Lucas is able to track the rate at which nations become industrialized, and the growth rate of the average income once industrialization has taken place. In doing so, he has come to the conclusion that the average rate of growth among industrialized nations is around 2% for the last 30 years, but is higher the closer the nation is to the point in time that it first industrialized. This conclusion is supported by his models, and is a generally accepted idea. Lucas goes on to say that the farther we get from the industrial revolution the average growth rate is more likely to hit 1.5% as a greater percentage of countries become industrialized.
Similar to Craft (2004b), Craft (2004a) uses a similar method to explore the effects the steam engine had on labor productivity growth. The difference between these two pieces is that Craft (2004a) studies the short-term effects that the steam engine had on productivity growth since he focuses only during the Industrial Revolution. However, both pieces explore the steam engines impact on growth by focusing on the contribution to growth of productivity. Craft (2004a) analogous to Craft (2004b) uses an embodied innovation growth accounting context (p.525). Craft (2004a) explains that technology contributes to growth in two ways. Technology can first contribute to growth by increasing the productivity by the fact that new technology is more beneficial
..., factories, etc.) and, on the other as, bourgeoisie who implemented accordance the collection of wealth. Therefore, he guarantees, that the end is close; and history has prepared a substitute for the dysfunctional bourgeoisie structure. However, conveying into the state of being real by “Modern Industry” and now awareness gatherings of their condition or state.
...sterlin, Richard A. "Does Economic Growth Improve the Human Lot?". Nations and Households in Economic Growth:
In Mass Flourishing by Edmund S. Phelps, the author strives to give his point of view on why some countries in the early 19th century went through periods of vast and unbounded growth of their wages, expansion of employment in the market economy and widespread satisfaction of their work (Phelps). He looks at several different examples of why certain countries, and what factors within those countries led to what he calls “flourishing”, and why that type of growth is no longer happening today. Phelps goes on to argue that flourishing and innovation are not the result of a select few innovators and inventors, but rather a cultural view of the masses, that steers economic growth within one’s industry and country. I believe Phelps’s question is important because he is looking for another way to describe economic growth that does not seem to follow mainstream ideas. Him being such a respected economist adds weight to his views and the evidence he provides throughout the book raises many valid points. Why was there such exponential growth throughout the 1800’s and into the 1900’s? What caused such growth to occur, and likewise, what caused that level of growth to cease? Phelps argues that grassroots innovation is one of the core causes of growth throughout history and gives several examples of why.
endorsed in the Wealth of Nations that epoch-making publication remains as perhaps the most famous economics book of all time. Governments in search of a strengthening of their states through economic policy, and many individuals in search of personal gain, have all drawn lessons from its pages. Powerful movements that led to the emergence of Modern Capitalism were substantially based on Smith's work and hence he deserves to be
Every year there is a ‘league table‘ published showing the level of economic growth achieved by each country. The comparison is made using each countries Gross Domestic Product, or GDP. An important factor to look at is the difference between actual and potential economic growth. Actual economic growth increases in real GDP. This increase can occur as result of using previously unemployed resources, or reallocating resources into more productive areas or improving existing resources. Whereas potential economic growth is the productive capacity of the economy. For example, it can be shown by the predicted ability of the country to produce goods and services. This changes when there is an increase in the quantity or quality of the resources. All countries have different ways of achieving this with the resources they have available to them. For this reason it party answers the question of why some countries are richer than others. It is widely thought that the productive capacity of an economy will increase each year largely due to improvements in education and technology. This will obviously differ from country to country. For example, in the UK the quality of fertilizer could be improved, hence forth increase the years fruit and vegetable output.
The theme of growth is in this time period. As the United States began to grow in land, it also began to grow both philosophically and physically. First stage of growth for America was Nationalism. U.S. Nationalism displayed itself through the development of the idea of Manifest Destiny after winning the War of 1812. The second key theme is developing an American Identity Or considered as the Age of Reform. Many aspects of American society contributed to developing its identity. It showed that the fabric of the new nation was continually changing as it grew into the first forty years of the 19th Century. Major movements just as the Second Great Awakening, Abolitionist movement, and the Temperance Movement showed a division in the American people
Economic growth focuses on encouraging firms to invest or encouraging people to save, which in turn creates funds for firms to invest. It runs hand-in-hand with the goal of high employment because in order for firms to be comfortable investing in assets such as plants and equipment, unemployment must be low. Hereby, the people and resources will be available to spur economic growth.
There are at least four different research perspectives about the relationship between development and economic growth. Firstly, economic growth is the basis for social development. Secondly, economic growth and social development are not necessarily linked. Thirdly, both economic growth and social development are not basic causes by each other, but they depend on interaction. Fourthly, social development is the prerequisite for economic growth (Mazumdar. 1...
It is natural to be misled by the idea that economic growth is the key
The objective of this paper is to make an economic development and economic growth comparison of these four countries. The comparison will be multi-faceted. It will compare monetary perform...
Economic development has a direct relationship with the environment. Whereas economic development is a policy intervention endeavour with aims of economic and social well-being of the people, economic growth is a phenomenon of market productivity and rise in GDP. According to them, the first chain consists of economic growth benefiting human development, since economic growth is likely to lead families and individuals to use their heightened incomes to increase expenditures, which in turn furthers human development. At the same time, with the increased consumption and spending, health, education and infrastructure, systems grow and contribute to economic growth.