Importance Of Economic Growth And Economic Development

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In this essay we will be able to analyze in detail several important components such as economic growth and economic development. For this, we will analyze some of the most outstanding theories in this field, with authors such as Adam Smith, Kuznets and Georgescu-Roegen. We will also highlight several studies that attempt to demonstrate the close relationship that economic growth has in the environment and what are the repercussions that global warming, also called climate change, has had on economic growth. Finally, we will briefly look at some pollution regulatory agreements and which are the countries that pollute the most according to the latest study carried out.

First of all, we have to describe roughly what is the Economic Growth. Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It is
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Endogenous growth theories: Rate of economic growth strongly influenced by human capital and rate of technological innovation.
Keynesian demand-side: This perspective is at odds with classical economic theory, or supply-side economics, which states the production of goods or services, or supply, is of primary importance in economic growth.

Limits to growth: this theory has an environmental approach, some argue that very long-term economic growth will be limited by the degradation of resources and global warming. This means that economic growth may come to an end, reminiscent of Malthus's theories. It is argued that economic growth may have certain limitations due to the scarcity of raw materials, climate change and overpopulation. But Malthus's predictions have not been produced, so these theories are often discarded. However, there may come a time when growth is limited by environmental factors.

(Source: Meadows et al. (2004,
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