Economic Growth Case Study

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1. Introduction What is economic growth? Economic growth is the expansion of production possibilities. A rapid pace of economic growth maintained over number of years can transform a poor nation into a rich one. The economic growth rate is the annual percentage change of real Gross Domestic Product (GDP) and its show how rapidly the total economy is expanding. (Parkin, 2011).Economic growth occurs when the GDP increased. An open economy is conducive to economic growth. An absence of corruption, like a functioning legal system, education, good health are driving forces of economic growth for enabling economic actors to take steps so that the production of goods and services increases. Therefore, macroeconomic stability, reduction of country…show more content…
The created high demand for labour and rapid expansion of employment, increasing income and reduce poverty (World Bank, 2004b).Land reform also reduction of poverty beside of growth on industrialization. Land reform facilitated a vast transfer arable land ownership to the peasantry. There were major improvements in productivity (Henderson et al. 2002).The strategy of Korea’s government invests in rural development of increasing of agricultural product price to income rural and successfully reduced rural poverty. It extends to industrial development to effectively reduce poverty and inequality depends on the pattern of industrialization. It is a high percentage of unskilled workers, and use of domestic inputs and labour intensive technologies can have good effects on incomes of the poor.
3. Macro-economic stability and Openness to Foreign Trade and Foreign direct Investment The sustainable public finances and low inflation with macro-economic stability also as important factors to creating conditions for growth. Derive benefit from the opportunities of the global economy, trade barriers must be removed through deregulation and reducing
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Employers can receive subsidies that pay for up to 95% of course fee and the absentee payroll if them to send the low-wage workers for training. This policy attracts more employers to send their workers for upgrading course and become win-win situation. In 2011, the government extended the Continuing Education and Training (CET) scheme to professionals, managers, executives and technicians (PMETs) with full time student grant level instead of older and low-wage workers and who make up more than 50 % of the workforce. Follows with Singapore's government the continuous of human capital investment in infrastructure for education and training, it cause the unemployment rate lower than developed countries as shown in Table
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