Human Capital Development

He also predicts that poor countries catch-up with the rich countries growth rate, but only if the poor countries have high human capital per person. He notes in his former model (Barro, 1990) that investment in education increases per capita growth, which further increases investment through knock-on effects. Since efficient human capital will lead to an increase in productivity, investment and growth. Recently Cutler et al. (2005) also finds the positive relation between education and economic growth.

Thus, economic growth plays an important role in the entire nation. This is to see whether the country is well developed or vice versa. On the other hand, economic growth creates high tax revenues to cut down government’s expenses. Therefore, it will reduce government borrowing and debt to GDP ratios. Indirectly, high increase make better standard of living.

Economic growth is very important for economy because it determines the employment rate, wealth of nation and standard of living of economy. Technological progress has many aspects. It may mean, new and better products with large amount of quantity. For given amount of capital and labor, productivity or output can be increased through technological progress. Moreover it also reduce number of worker to achieve certain amount of output.

Let us reverse this and take care of poverty as this will take care of po... ... middle of paper ... ...ad to many positive notes such as increase in productions, employments, and indirectly increase the local investments. Increase in productions, employments and capitals in the country thus enable a growth in the economy and therefore, the government should make careful decisions keeping in mind that of the impact these factors have on the societies. Bibliography: Judith Randel and Tony German., The Reality of Aid 1998/1999, UK:Earthscan Publications Ltd., 1998 Adelman and Morris: Economic Growth & Social Equity in Developing Countries, California: Stanford University Press.,1973 David Dembo, Clarence Dias, Ward Morehouse, James Paul: The International context of Rural Poverty in the Third World, Newyouk: Council on International and Public Affairs, Inc., 1986 Jacques Lecaillon, Felix Paukert, Christian Morrisson, Dimitri Germidis. Income Distribution and economic development,French:International Labour Organisation., 1984 Gary S. Fields. Poverty, Inequality, and Development, New York: Cambridge University Press.,1980 Michael P. Todaro.

The purpose of this essay is to analyze some arguments for and against economic growth in three perspectives: society, environment and human’s morality. One of the positive effect of economic growth is the improvement of individual’s quality of life as well as society welfare. The proponents of growth believe that economic growth is associated with some social goals such as alleviating poverty, reducing umemployment rate, or keeping social stability and so on. This assumption has been particularly adopted by developing countries who have been seeking to maximize their economic due to belief that growth leads to advances in the quality of life. For example, in some developed countries, with the increasing in tax revenues, the government can spend more money on important public services such as health care and education.

This means developing countries are able to access new broader markets and expand their consumers which increase the number of exports and income. Secondly, developing nations can import technology and goods to improve their productivity for a cheaper price compared to import with high tariffs or attempt to produce domestically through free trade agreements. Thirdly, free trade also bringing capital and new ideas into developing countries through foreign investment which could improve production processes of developing countries. For instance, their resources will be used more efficiently to produce more high quality goods or even manufactures new kinds of valuable products. Fourthly, the progress of innovation, new production technique and advanced production processes will lead to economic growth of developing countries.

This is done so in turn the commercial banks will lend more money to the consumers. As a consumer we must then spend this money increasing demand and therefore overall sales. If sales are up then profits too will be higher. This is a positive thing for Tesco has a larger demand for their products allow them to grow and expand due to greater profits. When an economy is in a recession the government has to act differently in order to increase demand and help businesses survive.

Many factors influence happiness, and the method of enhancing happiness. The essay will begin by discussing the relationship between economic wealth and life standards. According to Mankiw & Taylor (2011), the quality of life in countries with high economic wealth could improve. Economic wealth can be measured by materials, goods, services, and GDP (gross domestic product), which is the market value of all final goods and services produced within a country Economist (2010). As Anderton (2008, p. 203) observes, the high rate of disposable money will probably lead to better health-care safeguards, advanced educational systems, and the material necessities of life, enhancing the standard of living.

Economic growth is the expansion of a country’s productive capacity. This leads to a rise in total national output. Growth can occur in two different ways; the increased use of land, labour, capital and entrepreneurial resources by using better technology or management techniques and increased productivity of existing resource use through rising labour and capital productivity. While theoretically having an increasing national output means greater material welfare and a rise in living standards, it does not equate to having higher levels of well being for individuals in that nation. Economic growth can, in fact, have negative impacts on a nation including environmental degradation and the loss of traditional cultural values.

Human capital theory concludes that investment in human capital will lead to greater economic output but this theory is sometimes contradictory. In the past, the economic strengths mostly depend on physical assets such as land, factories and equipment. Labor is necessary, but physical investments increase business value. Modern economists agree that education and health are keys to improving human capital and increase economic output (Becker, 1983). Human Capital and Global Challenge Economic ideology sets out with a goal, in example, trying to explain the secrets of success (and failure) of a nation: why and how a nation managed to reach economic growth and generates prosperity.