1. Factors of Economic Growth
and Models/ Themes of
Economic Development
Selected Topics in Social Sciences for Social Studies – Part II
(SS 303)
2.
3. • Economic growth can
be defined as a
positive change in the
level of goods and
services produced by
a country over a
certain period of time.
4. • Human Resource
• Natural Resources
• Capital Formation
• Technological Development
• Social and Political
5 Factors that Affect the Economic Growth of a
Country
5. Refers to one of the most
important determinants
of the economic growth
of a country. The quality
and quantity of available
human resources can
directly affect the growth
of an economy.
1. Human Resource
6. The quality of the human
resource is dependent on its
skills, creative abilities,
training, and education. If
the human resource of a
country is well skilled and
trained then the output
would also be of high
quality.
1. Human Resource
7.
8. Affect the economic growth
of a country to a large
extent. Natural resources
involve resources that are
produced by nature either
on the land or beneath the
land. The resources on
land include plants, water
resources, and landscape.
2. Natural Resources
9. The resources beneath the land or
underground resources include oil,
natural gas, metals, non-metals,
and minerals. The natural
resources of a country depend on
climatic and environmental
conditions. Countries having plenty
of natural resources enjoy good
growth than countries with a small
number of natural resources.
2. Natural Resources
10. Involves land, building,
machinery, power,
transportation, and
medium of
communication. Producing
and acquiring all these
manmade products is
termed capital formation.
3. Capital Formation
Official name Cebu–Cordova Link Expressway
Opened April 30, 2022; 2 months ago
Inaugurated April 27, 2022; 2 months ago
11. Technology involves the
application of scientific
methods and production
techniques. In other words,
technology can be defined as
the nature and type of
technical instruments used
by a certain amount of labor.
4. Technological Development
12. Technological development
helps in increasing productivity
with the limited amount of
resources. Countries that have
worked in the field of
technological development
grow rapidly as compared to
countries that have less focus
on technological development.
4. Technological Development
13. “ A country which is considered
to be poor in resources may be
considered very rich in
resources some later time, not
merely because unknown
resources are discovered, but
equally because new methods
are discovered for the known
resources.” - Lewis
4. Technological Development
14. Play a crucial role in the
economic growth of a
country. Social factors
involve customs, traditions,
values, and beliefs, which
contribute to the growth of
an economy to a
considerable extent.
5. Social and Political Factors
16. • Model use (a system,
procedure, etc.) as an
example to follow or
imitate.
17. • Economic
Development refers to
structural changes in
production and
consumption, with
increase in total output
of the economy.
18. • Harrod-Domar Growth Model
• Lewis Structural Change (dual-sector) Model
• Rostow’s Model – the 5 Stages of Economic
Development
Models of Economic Growth and Development
19. The model suggests that
the economy’s rate of
growth depends on:
1.The level of saving
2.The productivity of
investment (i.e., The
capital-output ratio)
1. Harrod-Domar Growth Model
20. •The industrial sector
was assumed to be
technologically
advanced with high
levels of investment
operating in an urban
environment.
2. Lewis Structural Change (dual-sector) Model
21. •The traditional agricultural
sector was assumed to be
of a subsistence nature
characterized by low
productivity, low incomes,
low savings and
considerable
underemployment.
2. Lewis Structural Change (dual-sector) Model
22. In 1960, the American economic
historian, WW Rostow suggested
that countries passed through
five stages of economic
development.
According to Rostow
development requires
substantial investment in capital
3. Rostow’s Model – the 5 Stages of Economic Development
23. • Traditional society -
characterized by subsistence
agriculture or hunting &
gathering; almost wholly a
"primary" sector economy
• Pre-conditions to "take-off “ -
development of more productive,
commercial agriculture & cash
crops not consumed by
producers and/or largely
exported
3. Rostow’s Model – the 5 Stages of Economic Development
• Take off - urbanization increases,
industrialization proceeds, technological
breakthrough occurs
• Drive to maturity – large-scale
investment in social infrastructure
(schools, universities, hospitals, etc.)
• Age of mass consumption – the
industrial base dominates the economy;
the primary sector is of greatly diminished
weight in the economy & society
24. •Bhutan is best known for its philosophy of promoting gross national
happiness over gross domestic product and productivity.
•Guided by its gross national happiness, Bhutan has considerably improved
its economic, environmental, social, and governance situation in the past
four decades.
•Export concentration and a small domestic market remain formidable
challenges that the country should tackle head-on.
•Similar small countries that are soon graduating from the LDC group can
learn from Bhutan’s innovative approaches to keep growing its economy.
What Bhutan got right about happiness -
and what other countries can learn
25.
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