(n.d.)"). In a situation where HDI is greater than GDP, it reveals how development of a country has taken over in terms of making money. This can provide the nation with the development needed for the optimal growth, which would allow development to be sustained as growth continues ("About human development"). When GDP is greater than HDI it reveals how production has taken the place of developing the population. Due to the reduced investment in education and health, the access to these services can be more restrained.
However, it should be noted that no theory cannot be perfect without any drawback. New growth theory does not only explain how knowledge can transform to other firms or agents, and it is not also clear the characteristics of knowledge. Indeed, entrepreneurship cannot be a panacea for economic development, even though it can bring various advantages to regional economies. As Baumol (1993) asserts, entrepreneurship is not a synonym for virtuousness. Hence, much effort to increase the explanatory power of theory with corroborative data and methodologies are necessary for better understanding about economic development.
The term refers to the gap between those with regular, effective access to digital and information technology, and those without access (Warschauer, 2003). The adoption of new technologies requires investments; a quick glance at GDP data allows to draw a line separating countries that can afford ICT and countries that cannot: diffusion is clearly influenced by economic factors. However, in spite of such evidence, wealth distribution alone cannot account for the whole digital divide. The consideration that countries with similar economic conditions show significant differences in ICT adoption rates has drawn scholars’ attention to other factors such as cultural and social aspects. It is important to consider these factors in defining policies to bridge the digital divide.
For some recent decades, the pursuit of economic growth has became a principal ideology around the world. Generally, economic growth reflects that the economy is getting wealthier, living standards of an individual are getting better, advancement of technology, and importantly the unemployment rate is getting lower. Thus, there is no doubt that economic growth is set as a desirable objective to all countries. However, besides the positive effects, economic development also brings a number of serious environmental problems, such as air pollution, soil degradation, natural resources depletion. The purpose of this essay is to analyze some arguments for and against economic growth in three perspectives: society, environment and human’s morality.
They found two plausible explanations: (1) the improvement in wages of those lower educated people may also cause the wage of higher educated people increase; (2) the return to schooling are increasing with the level of education. According to Laroche’s eight main aspects of human capital, human capital investments are not qualitatively homogeneous. Denison(1967) argued that... ... middle of paper ... ...ion, such as government policy. A positive role of government can bring extra benefit for its citizen and nation. For example, embracing globalization can converge the growth and increase both private and social returns effectively; Improving the government administration can reduce the corruption and other public sector problems; building infrastructure can raise the standard of living.
However, the reality is far from theory. Evidence have shown that there is a negative relationship between markets causing from globalization and standards of the poor. Many countries, especially developing and third world countries, have not been able to sufficiently reap the benefits of globalization. Globalization today concentrates too much on developed countries, resulting in the uneven distribution of its benefits and drawing the attention away from struggling countries. Internationally, much effort have been placed in expediting free trade flows, particularly in products which are of significance to the developed countries, neglecting other issues like labor market standards and sustainability.
It is a worldwide belief that the more productive the labor force is, the more prosperous the economy will be; hence, there is large public investment in education in both developed and developing nations. The common belief brings out a general question - does an increase in education investment necessarily improve educational outcome? This paper specifically focuses on testing the correlation between government educational spending and students’ academic achievement in Washington State under K-12 education system with a least square regression. In order to answer the question, one must treat education as an economic good, because education is not easily obtainable and thus needs to be apportioned, as Olaniyan and Okemakinde (2008) stated. Like other capital goods, education has its supply function where government spending on education is one input and its output is students’ academic achievement.
It has however, been debated by economists whether GNP is the true measure of welfare and growth especially in poor countries. Gross National Product is essential as it highlights the society-wellbeing and development, it is also structured around change of production and employment in terms of the fact where there is a shift from undeveloped to developed, as well as to indicate improvement in certain social indicators like school and health conditions which is also seen as a prime factor in measuring societies development. Economic growth refers to the increasing ability of a nation to produce goods and services, and economic development, which also takes into consideration that the nation will be better off if it takes into consideration accounting changes in the economic and social structure that will decrease or terminate poverty. Therefore quantitative figures in terms of higher salary, higher volume of production does not reflect upon the welfare of the society, even though it may reflect a high GNP. It has been argued that in less developed countries GNP cannot be seen to accurately represent the welfare level.
Conclusion As travel becomes easier and more accessible going abroad to receive, medical care will increase. The U.S. may need to consider changing their laws on collaborating with other countries, and their laws on insurance companies offering incentives to patients who choose to travel abroad. Medical prices will continue to increase in the U.S. and patients will become more creative on how they can receive care. The U.S. is used to wealthy people in developing countries traveling here for care not their citizens traveling abroad for care. It is ultimately up to the patient to choose whether they want to stay in the U.S. or go abroad for cosmetic surgery.
Where appropriate make reference to a relevant case study.” Although economic growth and development are similar in meaning, they have some essential differences. Economic growth refers to the increasing ability of a nation to produce more goods and services. Economic development basically implies that individuals of that nation will be better off and takes into account changes in economic and social structures that will reduce or eliminate poverty. Economic development can be measured in a number of different ways including the Human Development Index, a Gender Empowerment Measure, a Human Poverty Index and a Human Freedom Index. All of these measures were developed by the United Nations Development Program.