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Relationship between economic growth and social development
The effects of economic growth
The effects of economic growth
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I have grouped some past literature on the topic and investigations I will be pursuing. Economic growth and how conflict affects GDP per capita growth will be discussed theoretically and through previous empirical analyses. Observations will be made on the assumptions they reach and what they indicate for this paper. 2.1 Economic Growth I first look into the theory and previous studies on economic growth. The reason behind this is to get an idea of what model I will use and which variables to include in my regressions. There have been many empirical studies analysing possible variables which are significant to economic growth. Barro, QJE 1991 uses the neoclassical Solow model (Solow, 1956 and Mankiw et al., 1992) to test for the theory of convergence which states that countries with an initial lower GDP grow more rapidly. This makes economic sense as the country that has been involved in the conflict has a greater amount of growth potential. The country will simply need to recover its lost resources and will fulfil conditional convergence. The neoclassical theory states as a country reaches the steady state an increase in investment will result in diminishing returns on capital. Poor countries, which have lower capital and higher rates of return on capital, will pull alongside to the income levels of rich countries with faster growth rates. As for the variables tested, for 98 countries in the period 1960-1985, the growth rate of GDP per capita is positively related to initial human capital and negatively related to the initial level of real per capita GDP. Growth is inversely related to the share of government consumption in GDP. Growth rates are positively related to measures of political stability and inversely related to a... ... middle of paper ... ...nds. As for the previous empirical studies according to Koubi, there are three different studies conducted on the topic. The existing empirical studies of the relationship between war and economic performance are one of three types: a) Those that study the unconditional relationship between war and economic growth. b) Those that examine the conditional relationship. And c) those that attempt to identify the mechanisms through which war affects economic growth (Koubi, 2002). My particular study focuses more on the first type as I am not particular examining the intensity, duration or severity of war, however focusing on a particular region and the different effects of civil war within the countries and interstate wars within the region. I will also observe previous studies of another topic that may become of interest as my paper progresses, the spill over effect.
The measure of growth is flawed, how countries see their growth is based on the consumption of their people. Many countries use the GDP (Gross Domestic Product) as an indicator for growth, as defined in It’s All Connected, “(GDP) is a calculation of the total monetary value of goods and services produced annually in a country” (Wheeler 11). The...
Some americans say that nations hinge on each other, while others say they also compete with one another. This gives rise to rivalry, which sometimes leads to war. Some wars emerge from differentiation in race, religion and culture. Due to the evolution of technology in an accelerated pace, highly sophisticated weapons are now available for use in wars. Wars also bring about widespread destruction, disrupt communication and hamper commerce. Thus, they cause heavy financial loss and great suffering to people. The effects of wars often affect countries that are not involved in the conflict. The threat of war can pressure a nation to waste immense amounts of money on defense instead of spending on developmental works like creating roads, hospitals, schools, and much more. War can halt a countries development. Some countries try to achieve political desires by using terrorism as a weapon against other countries. Terrorism spreads fear in civilians through acts of violence like killings and hostages. This intimidation has transformed into worldwide threat.
This paper will be outlining the theory behind the Endogenous Growth Theory, or EGT, and its comparison to other competing theories. To begin though it is important to clarify that the word endogenous just means to originate from within, or not attributable to any external or environmental factor, so one can assume that this theory relates to growth happening within the region instead of having to depend on external forces for market growth. EGT forces primarily on human capital, innovation, knowledge, and entrepreneurship to be the major contributors to economic growth within a region (Bennett). This innovation is a large part of the EGT, which manifests itself from research and
detail the ways that war has been perceived and how this impacts the topics of war and
...sterlin, Richard A. "Does Economic Growth Improve the Human Lot?". Nations and Households in Economic Growth:
Wars are good business. They create an immediate demand for a wide variety of materials needed by the government in order to fight the war. They create work opportunities for people that might not ordinarily be considered part of the normal work force. And, while not necessarily good for the soldiers engaged in the fighting, wars are always good for the businesses that provide the materials used in a war. The Second World War was very good for business.
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.
...nt variables. It can deal with the interests within a country and interests out of it. It can occur due to ideological differences or religious differences. It can occur due to a power grab, and in the cases of a failed brinkmanship, can be a complete accident. Each war throughout history has its own unique set of reasoning for occurring, which makes studying the causation of war so fascinating: in every war you study, you are guaranteed to find so many unique characteristics that it possesses.
The economy of a nation is a major indication of its success. One aspect of a nation's economic success or failure is the system of government. Whether a nation is socialistic, communistic, ruled by absolute sovereignty, or based on capitalistic principles can be a key factor in a country's economic success or failure. Government is the foundation of an economy but it is not what determines its success. Issues that determine a nation’s economic success include growth strategies, improved or increased resources, investment and savings, government policies, trade, foreign direct investment, income distribution, labor allocation, innovations in technology, and several other economic issues. I feel that economic growth is the main indicator of economic success. Additionally, innovations in technology, improving human capital, and improving foreign direct investment (FDI) are three issues that can lead to economic growth.
Wars in the 185os and 1860s. As a result of the wars, under the New
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...
Economic growth is one of the most important fields in economics. In current generation economic is developing well. Economic growth is really important to country and for the world as well. Economic are one of the identity for country because it shows a country development and attraction for other countries (F, Peter. 2014). For example well economic develop such as Singapore, Dubai, New York, and Japan. These countries are well develop and maintaining their economic growths. Economic growths are really important because higher average incomes enables consumers to enjoy more goods and services. Then, lower unemployment with higher output and positive economic growth firms tend to utilize more workers creating more employment. Enhanced public
It is natural to be misled by the idea that economic growth is the key
However, the GDP of country growth too rapidly also will negatively affect such as inequality of income increases to a significant level. This problem frequently facing due to economic development. This will let the rich people are getting more richer and poor are becoming poorer. Next, the economic develop rapidly also will increase of pollution rate. This is because the country is producing the maximum output for fulfilling the demand of the consumer. This will let the country has negative consequences for the environment and health of citizens is
War has been around for centuries. From the time modern civilizations began, war has played an integral part in human history. It shaped the world into the modern world we live in. War has been said to be a great motivator, for example, the Great Wall of China was built to fend off the attackers from the north. However, the negative aspects of war far outweighs any positive effects it might have. The destruction of civilizations, cities and countries, mass killings of men, woman and children alike, the disastrous effect it has on economy and the after effects of war can last for centuries.