To answer the question “Why do some countries grow faster than others?”, I argue that foremost technology and investment are the largest contributors to the economic growth of a nation, with government influence coming in second, as it can legislate factors that can inhibit or advance technological advance. Fundamentally, for a nation to prosper and thus grow it is necessary that the nation's society to have a few key features. A stable society that on some level, whether it be private or at a national level, is able to trade with other nations. A culture that is not insular to allow such trading. And some sort of governance to ensure a resolution of misgivings amongst its citizens, or in other words common laws, protection from external threats, and a common currency for trade within a nation. These factors help form the foundation of a nation that is able to support a prosperous and healthy economy. At the heart of the economy of a nation is its system of governance and without it the question of economic growth is almost meaningless. It is clearly evident that if a nation is entrenched in a war on its own soil with another nation or even itself, in the event of a civil war, that economic growth will be greatly hindered and not lead to even the prospect of prosperity or recovery until such a scenario is ended, and this is what I mean by a stable society. Some key factors to bear in mind when assessing economic growth are the current total productivity of a nation, how well developed its infrastructure is, its rate of technologic advancement, the quality and degree of its trade with other nations, and its citizen's consumption behavior.
I will propose that all of these factors are affected by the investment behavior and tech...
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...and if there were to be no technologic development in a nation it would eventually lose its competitive advantage to trade with other nations as they outstripped that nation's production because of new advancements.
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...conomically beneficial trade and technology development. In this regard the Epilogue uses sound logic to plausibly answer the wealth question. On the other hand, Mr. Diamond uses the same "national competition" thesis to purport that Asia's large, centralized governments were conspicuously growth-inhibitive. This argument would not seem to pass muster given what we have learned about the role of governments. Professor Wright's slides state that "Centralization may limit predation and even allow for growth" as "centralized predation = incentives to maximize the haul " This clearly refutes Mr. Diamond's argument that centralized, monopolistic Asian governments impaired societal advances. Thus, Guns, Germs, and Steel can scantly explain why China and the Middle East remain emerging markets while Western and Northern Europe enjoy significantly larger national wealth.
...nd again resulting in creation of bigger markets and pulling large competitors and creating new job opportunities, but the problem is with undefined factors like outsourcing, lack of skill development in respect with technology advancement. Technology advancement may be causing huge impact on employment but it is also making human living better. Technology as became part and parcel of our life so we can’t think of life without technology, but to make sure that the same does not harm our livelihood we should keep in track and sharpen and hone our skills with advancement of technology. (Brynjolfsson & McAfee, 2011)
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“In 2010, the prestigious Nemmers Prize in Economics, awarded biennially to recognize work of lasting significance, was given to Helpman for fundamental contributions to the understanding of modern international economics and the effects of political institutions on trade policy and economic growth” (Clement, 2012). “The Mystery of Economic Growth” that was written by Elhanan Helpman provides a non-technical description of growth economics over the last half of a century. This paper will connect theory to data of four major countries United States, French, Australia, and Japan. The principle that emerges from “The Mystery of Economic Growth” is that long term growth comes from innovation and adoption of technology in an economy. Four
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Why do some countries become wealthy and dominant, while others remain stagnant and poor? Jared Diamond exclaimed the secret to countries that prosper are guns, germs and steel. Countries have conquered other countries with the same approach. This approach is the use of military power and advanced technology. All great civilizations have had the following in common: Geographic luck, advanced technology, food production, immunity to germs, domestication of crops, domestication of animals, the use of steel, and a well organized workforce
Mankiw, NG. (1995). “The Growth of the Nations”. Brookings paper of economics activities. pp 275-326
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