According to the text, economic outcomes measured by economic growth is affected by a number of factors. Also, hundreds of empirical studies on economic growth across countries have highlighted the correlation between economic growth and a variety of variables.
Claims regarding the determinants of economic growth are conditional, and the findings depend on the variables used. However, the availability of physical capital or infrastructure, government consumption, terms of trade, macroeconomic stability, the rule of law, regulatory quality, government effectiveness, foreign direct investments, population size, and natural resource availability are the most consistent findings of empirical studies on economic growth.
Review the literature on economic growth and provide a summary of how:
Investment affects economic growth
Govt_Expenditure affects economic growth
Trade affects economic growth
FDI affects economic growth
Note: The answers you provide to each of these sub-questions should not be more than
15 sentences.
Also note that because this is a literature review you must cite credible sources;
avoid using news articles.
The examples below should serve as a guide
Example 1: The example below shows how inflation affects investment in a study of the effect of inflation on investment.
The destabilizing effect of inflation on investment has been a major source of debate in economic and business literature. Generally, inflation is often considered a sign of macroeconomic instability and the inability of government to control macroeconomic policy, both of which contribute to an adverse investment climate (Fischer, 2013; Greene & Villanueva, 1991). However, the empirical evidence is still far from convincing. While some authors claim positive effects of inflation on investment, others hold that inflation poses a “stealth” threat to investments. For example, Greene and Villanueva (1991) argue that high rate of inflation adversely affects private investment activity by increasing the riskiness of long-term investment projects. Also, Fischer (2013) observed that inflation uncertainty is associated with substantial reduction in total investment. On the contrary, McClain and Nicholes (1993) found that investment and inflation are positively related to each other.
Example 2: The example below shows how natural resource endowments affects income inequality in a study of the determinants of income inequality.
The nexus between natural resource endowments and income inequality has also been widely debated and has inspired a long history of research in both economics and political science (see, for example, Fum and Hodler, 2010; Goderis and Malone, 2011; Leamer, Maul, Rodriguez, and Schott, 1999; Carmignani, 2013; Parcero and Papyrakis, 2016; Bourguignon and Morrisson, 1998). For example, Anderson et al., (2004) argue that natural resources endowment provide a plausible explanation as to why the observed levels of inequality are significantly.
According to the text, economic outcomes measured by economic gr.docx
1. According to the text, economic outcomes measured by
economic growth is affected by a number of factors. Also,
hundreds of empirical studies on economic growth across
countries have highlighted the correlation between economic
growth and a variety of variables.
Claims regarding the determinants of economic growth are
conditional, and the findings depend on the variables
used. However, the availability of physical capital or
infrastructure, government consumption, terms of trade,
macroeconomic stability, the rule of law, regulatory quality,
government effectiveness, foreign direct investments,
population size, and natural resource availability are the most
consistent findings of empirical studies on economic growth.
Review the literature on economic growth and provide a
summary of how:
Investment affects economic growth
Govt_Expenditure affects economic growth
Trade affects economic growth
FDI affects economic growth
Note: The answers you provide to each of these sub-questions
should not be more than
15 sentences.
2. Also note that because this is a literature review you must cite
credible sources;
avoid using news articles.
The examples below should serve as a guide
Example 1: The example below shows how inflation affects
investment in a study of the effect of inflation on investment.
The destabilizing effect of inflation on investment has been a
major source of debate in economic and business literature.
Generally, inflation is often considered a sign of
macroeconomic instability and the inability of government to
control macroeconomic policy, both of which contribute to an
adverse investment climate (Fischer, 2013; Greene &
Villanueva, 1991). However, the empirical evidence is still far
from convincing. While some authors claim positive effects of
inflation on investment, others hold that inflation poses a
“stealth” threat to investments. For example, Greene and
Villanueva (1991) argue that high rate of inflation adversely
affects private investment activity by increasing the riskiness of
long-term investment projects. Also, Fischer (2013) observed
that inflation uncertainty is associated with substantial
reduction in total investment. On the contrary, McClain and
Nicholes (1993) found that investment and inflation are
positively related to each other.
Example 2: The example below shows how natural resource
endowments affects income inequality in a study of the
determinants of income inequality.
The nexus between natural resource endowments and income
inequality has also been widely debated and has inspired a long
history of research in both economics and political science (see,
for example, Fum and Hodler, 2010; Goderis and Malone, 2011;
3. Leamer, Maul, Rodriguez, and Schott, 1999; Carmignani, 2013;
Parcero and Papyrakis, 2016; Bourguignon and Morrisson,
1998). For example, Anderson et al., (2004) argue that natural
resources endowment provide a plausible explanation as to why
the observed levels of inequality are significantly higher in both
sub-Saharan Africa and Latin America (with predominantly high
ratios of natural resources to other factors) than they are in
either South or East Asia (with predominantly low ratios of
natural resources relative to other factors). The intuition is that,
natural resources are prone to rent-creation that are easily
captured by the ruling elite who are intransigent to redistribute
towards the lower class, which in turn exacerbates the income
gap between the ruling class and the poor majority (Nikoloski,
2009).
***These examples are from my own publications***
VERY USEFUL VIDEOS
https://www.youtube.com/watch?v=2IUZWZX4OGI
https://www.youtube.com/watch?v=UoYpyY9n9YQ
