The document summarizes key points from a lecture on sources of future economic growth in the UK:
1) The UK experienced a deep recession from 2008-2009 but recovery has been "V-shaped", similar to recessions in the early 1980s.
2) The government's austerity program aims to reduce the deficit significantly by 2015-2016 but front-loading cuts in 2011-2012 risks slowing the recovery.
3) The recession may have caused permanent loss of output and reduced the trend growth rate to about 2%, down from past averages, due to issues like long-term unemployment and reduced business investment.
Recent Economic Developments in Latvia and Medium-term OutlookLatvijas Banka
This presentation summarises recent macroeconomic developments in Latvia and outlines a medium-term outlook for real GDP and inflation. Presentation reviews ongoing economic recovery, labour market issues and includes analyses on core factors behind the path of inflation. The main focus of the presentation is on the issue of competitiveness of the Latvian economy pointing to the costs adjustment process and productivity gains, as well as presenting export performance, market shares and current account developments. Presentation also features slides on monetary and financial market developments.
Global growth prospects have dimmed and risks have escalated. The euro area crisis has entered a new perilous phase, with the euro area economy expected to enter recession in 2012. Growth is also slowing in emerging markets due to weaker external demand. Immediate policy priorities are restoring confidence in the euro area, sustaining growth while implementing fiscal adjustments, and providing liquidity. Other advanced economies must address fiscal imbalances and repair financial systems while sustaining recoveries. Emerging markets need to respond to moderating domestic growth and slowing external demand from advanced economies. Global growth is projected to slow to 3.3% in 2012, a downward revision of 0.7 percentage points from previous forecasts.
Government revises its 2009 real GDP growth forecast. The Prime
Minister (PM) announced yesterday that the official real GDP growth
forecast for this year is now between -4% and -5% from +1% to -1%
announced by Bank Negara Malaysia (BNM) in Mar 09. This is due to
the impact of the global recession on external demand which also
weakened domestic demand, especially private investment (1Q09: -
26% YoY), including FDI (1Q09: -50% YoY). However, apart from
mentioning a 25% drop in exports, no detailed breakdown of the
revised forecast was provided.
The document summarizes the economic outlook and challenges facing the coming economic cycle. It notes that recoveries from financial crises tend to be slow, productivity and corporate profits are recovering but bank lending remains constrained, and governments face large budget deficits and rising debt levels. Inflation risks are balanced between commodity price pressures and spare economic capacity. The UK recovery is strengthening but will remain uneven, with exports supported by a weaker pound but consumer spending and business investment facing headwinds. Public finances deteriorated sharply and fiscal austerity is needed. The UK outlook forecasts sluggish growth over 2010-2011 as unemployment peaks later in 2010.
Presentation on Global Financial Crisis by BIDSMd Masum Billah
Bangladesh's export sector is vulnerable to the global financial crisis as nearly half of exports go to the EU and one quarter to the USA. Estimates using export demand functions show Bangladesh exports to major markets will experience negative growth in 2009, especially leather goods. However, actual export data so far in 2008 shows Bangladesh outperforming other Asian countries, with positive growth despite declining imports in major markets. Exports are forecast to decline in the first half of 2009 before a gradual recovery.
Alison Felix, PhD and Senior Economist at the Federal Reserve Bank of Kansas City shares trends and projections for recession and recovery in Missouri and the U.S.
The EU-MS' Economies of central and east EuropeDirk Verbeken
CEE economies weathered challenges in 2011 such as reduced capital inflows and weak growth in the euro area. While CEE growth of 3.1% resumed convergence with the EU15, growth has weakened in each quarter of 2011 and 2012. Exports and imports continued contributing to growth, though export growth has decelerated, especially for intra-EU trade of intermediate goods. Despite the difficult external environment, bold fiscal measures have strengthened public finances in CEE, but further strengthening remains a priority.
Recent Economic Developments in Latvia and Medium-term OutlookLatvijas Banka
This presentation summarises recent macroeconomic developments in Latvia and outlines a medium-term outlook for real GDP and inflation. Presentation reviews ongoing economic recovery, labour market issues and includes analyses on core factors behind the path of inflation. The main focus of the presentation is on the issue of competitiveness of the Latvian economy pointing to the costs adjustment process and productivity gains, as well as presenting export performance, market shares and current account developments. Presentation also features slides on monetary and financial market developments.
Global growth prospects have dimmed and risks have escalated. The euro area crisis has entered a new perilous phase, with the euro area economy expected to enter recession in 2012. Growth is also slowing in emerging markets due to weaker external demand. Immediate policy priorities are restoring confidence in the euro area, sustaining growth while implementing fiscal adjustments, and providing liquidity. Other advanced economies must address fiscal imbalances and repair financial systems while sustaining recoveries. Emerging markets need to respond to moderating domestic growth and slowing external demand from advanced economies. Global growth is projected to slow to 3.3% in 2012, a downward revision of 0.7 percentage points from previous forecasts.
Government revises its 2009 real GDP growth forecast. The Prime
Minister (PM) announced yesterday that the official real GDP growth
forecast for this year is now between -4% and -5% from +1% to -1%
announced by Bank Negara Malaysia (BNM) in Mar 09. This is due to
the impact of the global recession on external demand which also
weakened domestic demand, especially private investment (1Q09: -
26% YoY), including FDI (1Q09: -50% YoY). However, apart from
mentioning a 25% drop in exports, no detailed breakdown of the
revised forecast was provided.
The document summarizes the economic outlook and challenges facing the coming economic cycle. It notes that recoveries from financial crises tend to be slow, productivity and corporate profits are recovering but bank lending remains constrained, and governments face large budget deficits and rising debt levels. Inflation risks are balanced between commodity price pressures and spare economic capacity. The UK recovery is strengthening but will remain uneven, with exports supported by a weaker pound but consumer spending and business investment facing headwinds. Public finances deteriorated sharply and fiscal austerity is needed. The UK outlook forecasts sluggish growth over 2010-2011 as unemployment peaks later in 2010.
Presentation on Global Financial Crisis by BIDSMd Masum Billah
Bangladesh's export sector is vulnerable to the global financial crisis as nearly half of exports go to the EU and one quarter to the USA. Estimates using export demand functions show Bangladesh exports to major markets will experience negative growth in 2009, especially leather goods. However, actual export data so far in 2008 shows Bangladesh outperforming other Asian countries, with positive growth despite declining imports in major markets. Exports are forecast to decline in the first half of 2009 before a gradual recovery.
Alison Felix, PhD and Senior Economist at the Federal Reserve Bank of Kansas City shares trends and projections for recession and recovery in Missouri and the U.S.
The EU-MS' Economies of central and east EuropeDirk Verbeken
CEE economies weathered challenges in 2011 such as reduced capital inflows and weak growth in the euro area. While CEE growth of 3.1% resumed convergence with the EU15, growth has weakened in each quarter of 2011 and 2012. Exports and imports continued contributing to growth, though export growth has decelerated, especially for intra-EU trade of intermediate goods. Despite the difficult external environment, bold fiscal measures have strengthened public finances in CEE, but further strengthening remains a priority.
The root-causes of the Greek sovereign debt crisisSamant Jain
To better understand the current sovereign debt crisis in Greece, a longer view is warranted. In this paper presented at the 2nd Bank of Greece workshop on the economies of Eastern European and Mediterranean countries, the Bank of Greece covers a 2 decade history of Greece leading to current financial crisis prevailing in the country and looming large over Europe and the future of EU.
The 20 year period 1989-2009 is bounded by two major fiscal crises in Greece: the 1989-1993 crisis, and the ongoing crisis. In both crises deficits exceeded 15% of GDP. In between, Greece entered the Economic and Monetary Union and adopted the Euro. To facilitate discussion the 20 year period will be divided into two parts: the 1989-1999 period, and the 2000-2009 period.
In the final part of the presentation, solutions and remedies to overcome the crisis are suggested.
Colin Hamilton's presentation at SteelOrbis Spring '12 Conference & 66th IREP...steelorbis
Colin Hamilton's, from Macquarie Capital, presentation on the macro environment and the effect on steel at SteelOrbis Spring '12 Conference & 66th IREPAS Meeting
Fincor- Sociedade Corretora, S.A. provides brokerage services including receiving, executing, and transmitting orders. The document discusses weekly market perspectives and does not constitute investment advice. Fincor will not accept responsibility for any use or effects of the content. It summarizes discussions on Greece requesting a delay in austerity measures, opposition from some European leaders to more delays, and economic data from Greece, Spain, Germany, France, and the Eurozone.
Taiwan's economic situation and outlook , june 2012tuagu79
The document summarizes Taiwan's economic situation and outlook in June 2012. It finds that Taiwan's real GDP grew at an annualized rate of just 0.39% in Q1 2012 due to contracting exports and weak domestic demand. While the global economy is expected to modestly grow in 2012, Taiwan's export and GDP growth will likely be muted at around 3% due to uncertainties from Europe and China. Taiwan ran a trade surplus in April 2012 as exports declined 6.4% and imports rose 2.1% year-on-year. China remains Taiwan's largest export market while Japan is still its biggest import source.
The weekly market perspectives document provided an overview of the global financial markets and key economic indicators. It noted that Spain has yet to formally request external financial support and discussed the potential impact of such a request. It also summarized recent economic data from Europe, the US, and other regions that continued to point to ongoing recession pressures. The preview section outlined some of the major economic reports and events to watch in the coming week.
Software and Systems Quarterly Market UpdateMMMTechLaw
This document provides a quarterly market update on macroeconomic conditions, the technology sector, and valuation metrics. Some key points:
- IT spending remains correlated with economic growth and is a leading indicator of improvement, though unemployment remains high.
- Access to capital markets and record corporate cash balances are fueling productivity-enhancing IT investments.
- Historically low interest rates are powering record corporate debt issuance in 2011 across investment grade, high yield, and loan markets.
- Since 2009, technology stocks have outperformed the broader market, with enterprise applications and SaaS companies showing the strongest gains.
- Valuations are highest for companies exhibiting above-average revenue growth and profit
This document summarizes the global economic outlook from Swedbank. It notes that global GDP growth forecasts for 2012 and 2013 have been revised downward to 3.0% and 3.1% respectively, due to slowing growth in developed economies and emerging markets. While some countries saw upward revisions to 2012 growth due to strong early year results, growth is expected to weaken further in 2013, especially in the eurozone and US. Potential global growth is now estimated around 3.8%, lower than previous estimates, due to issues like high debt levels, weak financial systems, and insufficient reforms. Downside risks to the outlook are seen as more probable than upside risks.
The document provides an international and domestic macroeconomic outlook. Key points internationally include concerns over Greek debt maturing in March and potential impacts on stock markets. Domestically, industry figures in January are expected to remain weak year-over-year. Recent inflation estimates show a slowing trend towards the 5.5% target for 2012. The current account deficit is expected to widen further in coming months.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
The document provides an economic assessment of the impact of Mongolia's proposed new mineral law. It discusses:
1. The role of mining in Mongolia's economy and its contributions to GDP, exports, investment, and government revenue.
2. The proposed new mineral law and the methodology used for the economic analysis.
3. The implications of the proposed law on Mongolia's economy based on modeling insights.
4. Conclusions from the analysis of the economic impact of the proposed new mineral law.
The document summarizes the political challenges around addressing the European debt crisis. It identifies 12 key players and maps out who each believes should bear the costs of past and future bailouts. The main factions are: 1) struggling peripheral countries who want more ECB support; 2) conservative German parties opposed to large transfers or Eurobonds; and 3) countries like Finland pushing for bailouts to reflect actual exposure levels rather than ECB capital weights. The endgame depends on Germany deciding how much cost it is willing to socialize through permanent fiscal transfers or Eurobonds.
The document discusses the ongoing European debt crisis and risks to the US economy. It analyzes the positions of various players in the European crisis including Germany, the ECB, and affected countries. There are disagreements around who should bear the costs of bailouts. The document also notes weakness in US data but argues against an imminent recession, though growth is expected to remain weak. More quantitative easing by the Fed is anticipated but benefits are uncertain. Low valuations reflect high recession probabilities priced into markets.
The document summarizes Israel's economic highlights for the second quarter of 2011. It provides key economic indicators such as GDP, exports, imports, unemployment rates, inflation rates, and compares Israel's economic growth to other advanced economies. GDP grew by 4.7% in the first quarter of 2011, exports made up 44.6% of GDP, and unemployment was at 6%.
The document provides an economic update for February 2011. It summarizes economic performance in the final quarter of 2010, noting a revival in risk appetite as fears of a double-dip recession faded. It then discusses factors influencing this such as quantitative easing in the US and concerns over sovereign debt in Europe. The document analyzes economic data for the UK specifically, noting that GDP contracted by 0.5% in Q4 2010, and inflation rose to 4% in January 2011 due to increases in VAT and oil prices. It concludes by outlining some forecasts for global and UK growth in 2011-2012.
The document discusses comparisons between Japan's economic crisis in the 1990s and the current Eurozone crisis. It analyzes similarities in the build-up and direct consequences to banking sectors. Both regions saw credit booms, rising asset prices, and deregulation. When the crises hit, banks in both areas faced increased impairments, declining collateral, and higher funding costs. The response of central banks and governments is also compared, looking at monetary easing, liquidity injections, and fiscal stimulus measures enacted in each situation. Major differences between the national Japanese crisis and the regional Eurozone crisis are also outlined.
1. Most economic indicators show signs that the recession has bottomed out in major OECD economies. GDP growth is projected to return in the third quarter of 2009 for the US and Eurozone.
2. However, unemployment has continued to rise sharply in many countries. Inflation remains low, reflecting falling oil and commodity prices.
3. Central banks have expanded their balance sheets significantly through large bond purchase programs. Government bond rates have stabilized after substantial declines.
4. While recovery appears to have started, the outlook remains uncertain depending on the strength of the upturn in private demand. Policy support will be needed to foster job creation and sustainable growth.
The document provides general marking guidance for examiners evaluating answers on a GCE Economics exam. It outlines several key principles:
1) All candidates should receive equal treatment and rewards for what they show they can do rather than being penalized for omissions.
2) Examiners should mark according to the mark scheme and award all marks that are deserved according to the level of response.
3) Unclear cases should be referred to the team leader for guidance.
This document provides an introduction to a trial unit of the International Middle Years Curriculum (IMYC) for students aged 11-12. It outlines the beliefs and principles behind the IMYC, which are focused on student learning and engagement. The IMYC aims to provide an exciting, dynamic curriculum that builds on the learning approaches of the International Primary Curriculum. It was developed based on observations of 11-14 year olds and discussions with teachers to address the developmental changes occurring for students in middle school.
The root-causes of the Greek sovereign debt crisisSamant Jain
To better understand the current sovereign debt crisis in Greece, a longer view is warranted. In this paper presented at the 2nd Bank of Greece workshop on the economies of Eastern European and Mediterranean countries, the Bank of Greece covers a 2 decade history of Greece leading to current financial crisis prevailing in the country and looming large over Europe and the future of EU.
The 20 year period 1989-2009 is bounded by two major fiscal crises in Greece: the 1989-1993 crisis, and the ongoing crisis. In both crises deficits exceeded 15% of GDP. In between, Greece entered the Economic and Monetary Union and adopted the Euro. To facilitate discussion the 20 year period will be divided into two parts: the 1989-1999 period, and the 2000-2009 period.
In the final part of the presentation, solutions and remedies to overcome the crisis are suggested.
Colin Hamilton's presentation at SteelOrbis Spring '12 Conference & 66th IREP...steelorbis
Colin Hamilton's, from Macquarie Capital, presentation on the macro environment and the effect on steel at SteelOrbis Spring '12 Conference & 66th IREPAS Meeting
Fincor- Sociedade Corretora, S.A. provides brokerage services including receiving, executing, and transmitting orders. The document discusses weekly market perspectives and does not constitute investment advice. Fincor will not accept responsibility for any use or effects of the content. It summarizes discussions on Greece requesting a delay in austerity measures, opposition from some European leaders to more delays, and economic data from Greece, Spain, Germany, France, and the Eurozone.
Taiwan's economic situation and outlook , june 2012tuagu79
The document summarizes Taiwan's economic situation and outlook in June 2012. It finds that Taiwan's real GDP grew at an annualized rate of just 0.39% in Q1 2012 due to contracting exports and weak domestic demand. While the global economy is expected to modestly grow in 2012, Taiwan's export and GDP growth will likely be muted at around 3% due to uncertainties from Europe and China. Taiwan ran a trade surplus in April 2012 as exports declined 6.4% and imports rose 2.1% year-on-year. China remains Taiwan's largest export market while Japan is still its biggest import source.
The weekly market perspectives document provided an overview of the global financial markets and key economic indicators. It noted that Spain has yet to formally request external financial support and discussed the potential impact of such a request. It also summarized recent economic data from Europe, the US, and other regions that continued to point to ongoing recession pressures. The preview section outlined some of the major economic reports and events to watch in the coming week.
Software and Systems Quarterly Market UpdateMMMTechLaw
This document provides a quarterly market update on macroeconomic conditions, the technology sector, and valuation metrics. Some key points:
- IT spending remains correlated with economic growth and is a leading indicator of improvement, though unemployment remains high.
- Access to capital markets and record corporate cash balances are fueling productivity-enhancing IT investments.
- Historically low interest rates are powering record corporate debt issuance in 2011 across investment grade, high yield, and loan markets.
- Since 2009, technology stocks have outperformed the broader market, with enterprise applications and SaaS companies showing the strongest gains.
- Valuations are highest for companies exhibiting above-average revenue growth and profit
This document summarizes the global economic outlook from Swedbank. It notes that global GDP growth forecasts for 2012 and 2013 have been revised downward to 3.0% and 3.1% respectively, due to slowing growth in developed economies and emerging markets. While some countries saw upward revisions to 2012 growth due to strong early year results, growth is expected to weaken further in 2013, especially in the eurozone and US. Potential global growth is now estimated around 3.8%, lower than previous estimates, due to issues like high debt levels, weak financial systems, and insufficient reforms. Downside risks to the outlook are seen as more probable than upside risks.
The document provides an international and domestic macroeconomic outlook. Key points internationally include concerns over Greek debt maturing in March and potential impacts on stock markets. Domestically, industry figures in January are expected to remain weak year-over-year. Recent inflation estimates show a slowing trend towards the 5.5% target for 2012. The current account deficit is expected to widen further in coming months.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
The document provides an economic assessment of the impact of Mongolia's proposed new mineral law. It discusses:
1. The role of mining in Mongolia's economy and its contributions to GDP, exports, investment, and government revenue.
2. The proposed new mineral law and the methodology used for the economic analysis.
3. The implications of the proposed law on Mongolia's economy based on modeling insights.
4. Conclusions from the analysis of the economic impact of the proposed new mineral law.
The document summarizes the political challenges around addressing the European debt crisis. It identifies 12 key players and maps out who each believes should bear the costs of past and future bailouts. The main factions are: 1) struggling peripheral countries who want more ECB support; 2) conservative German parties opposed to large transfers or Eurobonds; and 3) countries like Finland pushing for bailouts to reflect actual exposure levels rather than ECB capital weights. The endgame depends on Germany deciding how much cost it is willing to socialize through permanent fiscal transfers or Eurobonds.
The document discusses the ongoing European debt crisis and risks to the US economy. It analyzes the positions of various players in the European crisis including Germany, the ECB, and affected countries. There are disagreements around who should bear the costs of bailouts. The document also notes weakness in US data but argues against an imminent recession, though growth is expected to remain weak. More quantitative easing by the Fed is anticipated but benefits are uncertain. Low valuations reflect high recession probabilities priced into markets.
The document summarizes Israel's economic highlights for the second quarter of 2011. It provides key economic indicators such as GDP, exports, imports, unemployment rates, inflation rates, and compares Israel's economic growth to other advanced economies. GDP grew by 4.7% in the first quarter of 2011, exports made up 44.6% of GDP, and unemployment was at 6%.
The document provides an economic update for February 2011. It summarizes economic performance in the final quarter of 2010, noting a revival in risk appetite as fears of a double-dip recession faded. It then discusses factors influencing this such as quantitative easing in the US and concerns over sovereign debt in Europe. The document analyzes economic data for the UK specifically, noting that GDP contracted by 0.5% in Q4 2010, and inflation rose to 4% in January 2011 due to increases in VAT and oil prices. It concludes by outlining some forecasts for global and UK growth in 2011-2012.
The document discusses comparisons between Japan's economic crisis in the 1990s and the current Eurozone crisis. It analyzes similarities in the build-up and direct consequences to banking sectors. Both regions saw credit booms, rising asset prices, and deregulation. When the crises hit, banks in both areas faced increased impairments, declining collateral, and higher funding costs. The response of central banks and governments is also compared, looking at monetary easing, liquidity injections, and fiscal stimulus measures enacted in each situation. Major differences between the national Japanese crisis and the regional Eurozone crisis are also outlined.
1. Most economic indicators show signs that the recession has bottomed out in major OECD economies. GDP growth is projected to return in the third quarter of 2009 for the US and Eurozone.
2. However, unemployment has continued to rise sharply in many countries. Inflation remains low, reflecting falling oil and commodity prices.
3. Central banks have expanded their balance sheets significantly through large bond purchase programs. Government bond rates have stabilized after substantial declines.
4. While recovery appears to have started, the outlook remains uncertain depending on the strength of the upturn in private demand. Policy support will be needed to foster job creation and sustainable growth.
The document provides general marking guidance for examiners evaluating answers on a GCE Economics exam. It outlines several key principles:
1) All candidates should receive equal treatment and rewards for what they show they can do rather than being penalized for omissions.
2) Examiners should mark according to the mark scheme and award all marks that are deserved according to the level of response.
3) Unclear cases should be referred to the team leader for guidance.
This document provides an introduction to a trial unit of the International Middle Years Curriculum (IMYC) for students aged 11-12. It outlines the beliefs and principles behind the IMYC, which are focused on student learning and engagement. The IMYC aims to provide an exciting, dynamic curriculum that builds on the learning approaches of the International Primary Curriculum. It was developed based on observations of 11-14 year olds and discussions with teachers to address the developmental changes occurring for students in middle school.
1. The document provides a mark scheme for an economics exam on topics including trade blocs, fiscal policy, and foreign direct investment.
2. It outlines the number of marks available for each question and the criteria to achieve marks at each level, such as the number of points and examples required.
3. Sample answer points and evaluations are provided for each question as examples that would meet the mark scheme requirements.
This document discusses price volatility in commodity markets. It provides examples of food price volatility and discusses causes of price volatility from both supply and demand-side factors. These include cyclical demand, seasonal changes, speculative demand, unstable supply conditions, and changes in actual versus planned supply. The document also discusses the consequences of price volatility for producers, consumers, and governments. It notes attempts by governments to stabilize prices through options like price controls, trade controls, and commodity price stabilization schemes.
Many developing countries rely too heavily on primary commodities whose prices fluctuate widely, causing economic instability. Diversifying industrial bases and improving agricultural productivity can help address this over-reliance. While opening markets and improving price signals can boost efficiency, developing countries face issues like market failures, externalities, and adjustment periods that harm populations. Structural adjustment policies aimed at balancing budgets and making economies creditworthy can be problematic if they raise prices, cut spending, and increase unemployment and poverty. Both outward-looking and inward-looking trade strategies carry risks and benefits that must be considered. Population control, encouraging savings and investment, and lowering the capital to output ratio are also important to economic growth.
The document discusses the four factors of production - land, labor, capital, and entrepreneurship. Land refers to not just the physical land a business uses, but also natural resources extracted from the ground like fish, oil, crops, wood, and minerals. Labor means the human workforce required to perform the work. Capital is the money needed to purchase assets and materials for the business. Entrepreneurship involves a person taking on the risk to combine and manage the other three factors of production.
This document provides the mark scheme for the 2010 summer GCE Economics exam. It outlines the questions, potential answers, and number of marks awarded for each question. The exam assessed students' knowledge of macroeconomic concepts like GDP, inflation, unemployment, fiscal and monetary policy. It also addressed topics such as the housing market, asset prices, and policies to stimulate economic growth. Evaluation of arguments and use of data from figures and extracts were important. Diagrams were suggested to illustrate transmission mechanisms of policies and shifts in aggregate demand or supply.
The document discusses various measures used to assess economic performance and well-being, including GDP, inflation, unemployment, balance of payments, exchange rates, as well as non-economic measures like quality of life, environment, health, education, and taxation. It provides details on how each indicator is defined and calculated, factors that influence the measurements, and implications of different levels.
This document provides 10 ways to improve economics exam papers, beginning with emphasizing the importance of marginal analysis in economics. It discusses unintended consequences of government policies, the role of stakeholders, incorporating different time periods, non-linear demand and supply curves, interrelated markets, how relative prices and incentives affect behavior, the role of expectations, and applying the cost-benefit principle. It concludes by noting most policy problems require multiple strategies and that diagrams can strengthen economic analysis.
This document discusses barriers to entry in markets and the types of barriers that exist. It describes three main types of barriers: structural barriers that exist due to cost advantages of incumbents; strategic barriers created by firms through actions like predatory pricing; and statutory barriers imposed by laws requiring licenses. Specific barriers mentioned include economies of scale, branding, patents, and regulations. The document also notes that barriers to entry protect incumbent firms' monopoly power and profits by making markets less contestable to new entrants.
Decision trees enable businesses to quantify decision making by placing numerical values on potential outcomes of uncertain decisions. They allow comparison of different options by calculating the expected values based on estimated probabilities and outcomes. While useful, decision trees have limitations such as how accurate the underlying data and probability estimates are. The example shows a decision tree for a business considering opening a new outlet, with branches based on economic growth probabilities and monetary outcomes. Changing the probability estimates impacts the expected values and optimal decision.
Disney acquired Marvel Comics for $4 billion, raising concerns from comic fans about how Marvel's outsider superheroes would fit into Disney's family-friendly brand. However, Disney reassured fans that the comics would not change and the acquisition makes strategic sense as superhero movies have been very successful. Disney has shown with its acquisition of Pixar that it does not destroy what it acquires but allows creative freedom, ensuring continued success.
This document provides information about Edexcel's GCE Economics exam for Summer 2010. It includes the following key points:
1) It introduces the Edexcel GCE Economics exam paper and provides the publication code and copyright information.
2) It provides contact information for Edexcel and ways to get subject-specific help from Edexcel experts regarding the content of the Mark Scheme.
3) It notes some important points about the Mark Scheme, including that candidates can achieve up to 3 explanation marks even for an incorrect option, and up to 3 marks for explaining three incorrect options.
This document provides a mark scheme for the GCE Economics exam from Edexcel. It contains three sections: 1) general marking guidance, 2) the mark scheme for exam paper 6EC01, and 3) the mark scheme for exam paper 6EC02. Each question in the schemes includes the answer, and how many marks are allocated to different parts of the answer. The highest number of marks that can be awarded for a question is 4. The mark scheme provides a detailed breakdown of the key points examiners should look for in students' answers to award marks correctly.
Unit 3 style question - Waterford/Wedgwood plcmattbentley34
Waterford Wedgwood, maker of Waterford crystal and Wedgwood china, has struggled financially in recent years due to declining formal dining trends. To cut costs and save the company, it has moved most ceramics production to Indonesia and plans to move all crystal manufacturing there as well. This will cut manufacturing costs in half and allow the company to be profitable again by 2009 or 2010. While production moves overseas, the products will still be branded as being made in England to comply with international trade law.
1. Elasticity measures the responsiveness of one variable, such as demand or supply, to changes in another variable, such as price or income.
2. There are four main types of elasticity: price elasticity of demand, price elasticity of supply, income elasticity of demand, and cross elasticity.
3. Price elasticity of demand measures how much demand changes in response to changes in price. If demand changes more than price, it is elastic; if less than price, it is inelastic.
The document discusses how international investment income flows affect Australia's balance of payments. It notes that Australia now has a deficit on net income flows that is about twice the size of the trade deficit. Higher profits for Australian companies, particularly in the mining sector due to increased commodity demand from China, have contributed significantly to the widening deficit on net income as foreign investors own a large portion of these profitable companies and income accrues overseas. While only a minority of increased mining profits have so far been paid out as dividends to foreign shareholders, retained earnings have increased and continue to widen the net income deficit.
The weekly market perspectives document provides an overview of the key events and developments from the previous week in the global financial markets. It discusses topics such as the ongoing debt crisis in Europe, economic data releases and central bank actions. The summary highlights that Spain has yet to formally request external support, uncertainty around Greece obtaining additional bailout funds, and mixed economic indicators in both Europe and the US.
The document provides an overview of Enel SpA's 2011 results and 2012-2016 strategic plan. Key points include:
1) Enel reported a 1.4% increase in EBITDA for 2011 to €17.7 billion, though net income declined 5.5% to €4.1 billion due to higher taxes.
2) The strategic plan outlines macroeconomic assumptions for mature and growth markets and focuses on priorities like efficiencies in mature markets and growth in emerging markets.
3) The plan expects challenges in 2012 from declining demand in Italy, Spain, and mature markets as well as overcapacity issues, while forecasting organic growth to boost profitability in Latin America.
The WESP mid-2011 update highlights that the recovery of the global economy remains intact but uneven, with strong output growth in developing countries and a weaker economic performance in developed countries. At the same time, new headwinds have emerged, such as upward pressure on inflation rates due to higher energy and food prices and continued appreciation pressure on emerging market currencies.
The publication predicts weaker global growth in 2011 and 2012 as the recovery has lost momentum since the middle of 2010. World gross product is forecast to expand by 3.1 per cent in 2011 and 3.5 per cent in 2012, following estimated growth of 3.6 per cent in 2010. The report emphasizes that the outlook remains uncertain, surrounded by serious downside risks. It further indicates that, in the short run, more fiscal stimulus will be needed to reinvigorate the global recovery, but that it will need to be better coordinated with monetary policies and reoriented to provide stronger support to employment generation.
The Greek parliament passed additional austerity measures but Greece's debt remains unsustainable. The Troika acknowledged Greek debt is unsustainable and options like extending maturities or lowering interest rates could help. However, Greece will likely need more funds and its debt will exceed the 2020 target of 120% GDP. Further austerity has been associated with a 15% GDP decline making debt relief necessary to keep Greece in the eurozone.
The document discusses the U.S. budget situation and options for fiscal policy. It notes that while short-term deficits are not a major problem, medium-term deficits will likely require tax increases over the next decade and long-term deficits pose growing and unsustainable shortfalls. It outlines concerns about rising federal debt levels and fiscal problems in other countries as well. The document analyzes how the U.S. arrived at its current budget situation through gradual economic and policy changes as well as the Great Recession. It projects ongoing deficits and rising debt levels over the next decade under different policy scenarios and considers the long-term fiscal gap. The document discusses balancing recovery efforts with fiscal discipline in the medium and long-term.
The document discusses the U.S. budget situation and options for fiscal policy. It notes that while short-term deficits are not a major problem, medium-term deficits will likely require tax increases over the next decade and long-term deficits pose growing and unsustainable shortfalls. It outlines concerns about rising federal debt levels and fiscal problems in other countries as well. The document analyzes how the U.S. accumulated large budget deficits gradually and then suddenly due to economic changes, policy decisions, and the Great Recession. It projects ongoing large deficits and rising debt levels through 2020 under different policy scenarios and discusses the long-term fiscal challenges facing the country.
Global economic activity is picking up, but the continuing crisis in the euro area is delaying a meaningful recovery and job creation, the OECD said in its latest Interim Economic Assessment.
This document contains forward-looking statements and disclaimers about Ana Patricia Botín and Santander UK plc. It discusses Santander UK's strengths in the UK market, including its large customer base and distribution network. It notes opportunities for growth, including integrating the business acquired from RBS. The document summarizes the challenging market environment in the UK, with modest GDP growth, lower interest rates, and increasing regulatory pressures and funding costs impacting bank earnings. Santander UK will focus on commercial turnaround over the next three years to unlock its potential.
Temple Leadership Seminar Outlook Talk 2 19 2009mgala
The document summarizes the state of the US economy in early 2009. It notes that actual 2008 economic growth, employment, and inflation were significantly weaker than had been forecast the previous year. Housing prices declined substantially across most states and the sharp drops in home values and stock prices reduced household wealth. The recession caused job losses averaging 250,000 per month since late 2007, and unemployment rose significantly. Businesses reduced inventories and cut back on investment in response to weak sales and economic uncertainty.
Economic Trends, a copy of the presentation delivered by Andrew Johnson, Senior Economist at EEF from the CIM East of England Summer Marketing Conference held on 9 June 2011 at ARU, Chelmsford
The global economy is recovering, but confidence is extremely uneven across different regions, according to the OECD’s latest Economic Outlook. European governments must take greater action to ensure that the crisis in the euro area does not derail the recovery.
The Economic Survey projects India's GDP growth to increase to 7.6% in 2012-13 and 8.6% in 2013-14, however these projections are considered ambitious. Fiscal consolidation is seen as key to achieving this level of growth. Industrial output growth remains a concern, with only a marginal recovery seen and doubts about sustainability. While exports are slowing, the global situation remains difficult and could lead to increased protectionism. Overhauling FDI policy by addressing sectoral issues is recommended to boost growth.
The economy in Georgia grew by an estimated 4.6% in 2011 and is projected to slow to 3.5% growth in 2012 and rebound to 4.5% in 2013. Businesses in Georgia are more optimistic about the economy and hiring compared to the EU average, but the high cost and limited availability of long-term financing remain major constraints. The government budget was in surplus in 2011 but growth forecasts may squeeze the 2012 budget.
The document summarizes the Irish economic outlook. It notes that a narrow recovery is underway, supported by a recovering global economy. Exports are driving Ireland's recovery as competitiveness has improved due to gains in cost and price competitiveness. However, domestic demand remains weak with consumption and investment continuing to contract.
The document summarizes the global and Irish economic outlook. It notes that Ireland is recovering from recession in 2011, with GDP growth projected to be 1%. However, domestic demand is still contracting, though at a slower pace, while exports are driving the recovery. Challenges remain in restoring public finances and boosting jobs. Advanced economies are stuck in a slow growth environment.
Recent Economic Developments in Latvia and Medium-term OutlookLatvijas Banka
This presentation summarises recent macroeconomic developments in Latvia and outlines a medium-term outlook for real GDP and inflation. Presentation reviews ongoing economic recovery, labour market issues and includes analyses on core factors behind the path of inflation. The main focus of the presentation is on the issue of competitiveness of the Latvian economy pointing to the costs adjustment process and productivity gains, as well as presenting export performance, market shares and current account developments. Presentation also features slides on monetary and financial market developments.
The document summarizes Botswana's economic conditions in the second quarter of 2010. GDP grew 7.5% in the first quarter, the first positive growth since late 2008, led by a 10.1% increase in mining output. Non-mining private sector growth was lower at 5.5%. Business confidence improved but remains below pre-crisis levels, and businesses expect slower growth than official forecasts. While conditions are improving, Botswana still faces fiscal challenges from adverse medium-term trends exacerbated by the global crisis.
Robert Chote: Public finances and health careThe King's Fund
Robert Chote, Chairman of the Office for Budget Responsibility (OBR), shares the results of the OBR’s 2012 Fiscal Sustainability report, with a specific focus on health care spending.
Slide 1 1mm - the basic economic problemmattbentley34
The basic economic problem is that human wants are unlimited while resources are scarce. This means that societies must make choices about how to allocate scarce resources between alternative uses to best satisfy people's needs and wants. The opportunity cost of a choice is the value of the best alternative forgone, or what is given up by making that choice. Production possibility curves illustrate this problem by showing the tradeoffs involved - producing more of one good requires producing less of another since resources are limited.
This document introduces economics as a social science that studies human behavior in markets at both micro and macro levels. It then lists several current economic issues and prompts the reader to discuss the reasons for each issue and potential solutions in small groups. Some of the issues highlighted include the wealth divide, the effects of Brexit, policies to curb plastic pollution, and the future of work with artificial intelligence. The document encourages further discussion and learning about economics topics.
1. Altruism refers to humans behaving with more kindness and fairness than would be expected if they acted rationally according to self-interest.
2. Anchoring is the tendency for people to rely on irrelevant reference points or anchors when making estimates.
3. Bounded rationality recognizes the cognitive limits of humans in making fully rational decisions due to limits in information, time, and brain processing capacity.
This document provides a list of 14 online resources for learning about behavioral economics and conducting experiments. Some of the key resources mentioned include Dan Ariely's website which has video explanations of concepts and research; the Invisible Gorilla team's videos demonstrating bounded rationality; interactive experiments on the Online Psychology Laboratory website; and videos from the Behavioural Design Lab. Overall, the document serves as a guide to various online materials for studying behavioral economics concepts.
This document introduces concepts from behavioural economics, which challenges the assumption that people always make rational decisions. It discusses how social, emotional, and cognitive factors can influence choices. People have bounded rationality and use mental shortcuts like heuristics. Choices are affected by defaults, framing, norms, and biases. Behavioural economics aims to "nudge" better choices through approaches like changing defaults or using social norms, rather than mandates. However, some argue that nudges could be seen as paternalistic or that consumers are not as irrational as behavioral economics assumes.
1. ArcelorMittal, the world's largest steelmaker, made a bid to acquire Macarthur Coal in Australia in October 2011. This was likely motivated by the desire to achieve the benefits of backwards vertical integration, as ArcelorMittal uses large quantities of coal in its steel production process.
2. Sally owns a potato farm and aims to maximize profit. As she believes the market price of potatoes will not be affected by her farm's output level, she will produce at the level where marginal cost equals price in the short run to maximize profit.
3. Sally believes her individual output will not impact the overall market price. Therefore, she will produce the quantity where marginal cost equals price to
- Starbucks has had success in China but has faced criticism for high prices. It has adopted a localization strategy including store designs that reflect local culture and adding popular local flavors.
- Spotify dominates the music streaming market but faces challenges from competitors differentiating their offerings and royalty costs reducing profits despite rising revenues.
- Nissan faces uncertainty from Brexit but has cut European prices for its electric Leaf model. A UK consumer could save over £1,000 buying from France due to the weak pound.
This document summarizes factors that influence wage determination in labor markets, including supply and demand, trade unions, government intervention, and discrimination. Key points include:
- Supply and demand are primary determinants of wages, with wages rising or falling based on labor demand changes.
- Economic rent and transfer earnings also impact wages. Workers earn more economic rent the more inelastic the labor supply.
- Trade unions aim to increase member wages through collective bargaining, creating a new higher minimum supply curve. This raises wages but reduces employment.
- Government policies like minimum wage legislation and anti-discrimination laws also impact wages.
- Discrimination against groups lowers their wages below true market rates due to prejudices about their productivity
Justin King became CEO of UK retailer J Sainsbury plc in 2004 when sales and market share were falling. He implemented a strategy of recovery through sales growth including price cuts, organizational restructuring, and bonuses for higher store standards. King also focused on increasing employee engagement to improve customer service and financial performance. Following King's changes, Sainsbury's experienced 36 consecutive months of sales growth from 2010 to 2013 and increased its market share. However, in 2014 King announced he was stepping down as CEO and soon after Sainsbury's reported its first sales decline in 9 years due to continued competition.
This document provides a template for planning answers to AQA A Level Business exam questions. The template includes spaces to write the question, marks available, and multiple paragraphs to structure an answer with context, evidence, models, theory and reasoning. Each paragraph includes prompts to include an explanation of a point and opportunities to include evaluation.
The multiplier effect occurs when an initial injection of spending, such as government spending on a new infrastructure project, leads to a greater total increase in real GDP through multiple rounds of spending. The size of the multiplier effect depends on factors like the marginal propensity to consume, marginal propensity to save, marginal propensity to import, and how elastic the aggregate supply is. A higher propensity to consume and a lower propensity to save and import leads to a larger multiplier. The multiplier is calculated as 1 divided by the sum of the marginal propensities.
Nationalism and racialism are often confused concepts. Nationalism refers to a shared cultural identity among a group of people, such as a common language, religion, or traditions. In contrast, racialism asserts that humanity is divided into distinct biological groups with inherent differences. While nationalism can take liberal forms that promote self-determination and international harmony, it can also be expressed chauvinistically by asserting the superiority of one nation over others. Racialism inherently claims racial segregation and superiority. However, the concepts can overlap, such as in certain expressions of aggressive nationalism. Overall, nationalism encompasses a spectrum of doctrines from the progressive to the reactionary.
This document provides exam advice for the Edexcel A Level Economics exam. It outlines the structure and timing of Papers 1-3 and the types of questions that may be asked. For each section and question type, it offers strategies and techniques for answering questions successfully, such as using diagrams, chains of analysis, and considering different perspectives in evaluations. Students are advised to read questions carefully, show workings, use economic terminology, and relate their answers back to the questions.
The document appears to be missing content and only contains the heading "Conclusions;" without any conclusions stated. Based on the limited information, this document does not provide any summarizable content in 3 sentences or less.
Nationalism and racialism are often confused concepts. Nationalism refers to a shared cultural identity among a group of people, such as a common language, religion, or traditions. In contrast, racialism asserts that humanity is divided into distinct biological groups with inherent differences. While nationalism can take liberal forms that promote self-determination and international harmony, it can also be expressed chauvinistically by asserting the superiority of one nation over others. Racialism inherently claims racial segregation and superiority. However, the concepts can overlap, such as in certain expressions of aggressive nationalism. Overall, nationalism encompasses a spectrum of doctrines from the progressive to the reactionary.
This document discusses different voting systems used in elections, including first-past-the-post, supplementary vote, additional vote, and single transferable vote systems. First-past-the-post is used for UK House of Commons elections, where voters select one candidate and the candidate with the most votes wins. Proportional representation systems aim to allocate seats proportionally based on votes. The supplementary vote and additional vote systems allow voters to rank candidates, while single transferable vote uses multi-member constituencies and transfers votes from eliminated candidates.
This document provides an overview of key concepts related to political representation and democracy in the UK. It defines democracy, explaining that modern democracies are generally representative rather than direct, with citizens electing representatives to make decisions on their behalf. It discusses the role of manifestos in outlining party policies, and the concept of mandates for the party that wins a majority of seats. Referendums are described as a way to directly consult citizens on important issues. Finally, it outlines the different levels of government in the UK, from local to national to European Union levels.
This document discusses political participation in the UK. It outlines different forms of political participation such as voting, joining political parties, and participating in demonstrations. Younger people are more likely to engage in newer forms of participation like pressure groups, while older individuals typically participate through voting and party membership. Women are underrepresented among politicians but equally participate in other ways. Traditional participation through parties and unions has declined as issues are addressed more globally and new social and environmental movements have emerged.
This document discusses several major political ideologies including liberalism, conservatism, socialism, and others. It defines ideology as "an interrelated set of ideas that in some way guides or inspires political action." Liberalism focuses on individual freedom, equality of opportunity, and a limited government role, while conservatism emphasizes tradition, gradual change, and social order. Socialism promotes collectivism, equality, and opposition to capitalism. The document also examines post-ideological politics, where clear ideological differences are less apparent and single-issue groups are more common.
1. Where Will Growth Come From? 17/02/2011
Where will growth come from?
Notes from lecture given
by Prof John Van
Reenen (LSE)
17 February 2011
A ‘V’ shaped recovery ... For now
The Cycle: Growth in UK National Output
Annual percentage change in GDP measured at constant prices
5 5
4 4
3 3
2 2
1 1
0 0
Percent
-1 -1
-2 -2
-3 -3
-4 -4
-5 -5
-6 -6
90 92 94 96 98 00 02 04 06 08 10 12
Source: UK Statistics Commission
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2. Where Will Growth Come From? 17/02/2011
Recent growth experience
A 6.5% decline in real GDP during the first 12
months of the recession – a decline of 1930s
dimensions
But the subsequent recovery (of sorts) puts the
recent UK recession on a par with of that the early
1980s
The coalition’s fiscal austerity program is the
biggest budget cut since WWII
Austerity plan is to reduce deficit by 7% of GDP by
2015-16 with much of the pain front-loaded to
2011-12
George Osborne believes we don’t need a plan B
but Van Reenen argues that we need a Plan V if
trend growth is to be sustained
Damaging effects of recession
Has there been a permanent fall in output?
Lots of uncertainty about this and the size of the output gap
Loss of output could be anywhere between 2-10% of GDP
Trend growth rate will have diminished – 2% may be the new
normal for the UK due to hysteresis effects:
◦ Scrapping of human capital / people leaving the labour force
◦ Long term unemployment now 1/3rd of the total
◦ Scrapping of fixed capital / steep decline in capital spending
◦ Increased risk aversion of the financial system
Micro policies of the Coalition may also be undermining trend
growth e.g. Universities and immigration caps
But recession and business shake-out may have lifted
efficiency
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3. Where Will Growth Come From? 17/02/2011
A fall in trend growth estimates
UK - Potential GDP and Trend Growth
Source: OECD World Economic Outlook
4.00 4.00
Estimated UK Trend Growth Rate
Per cent per year
3.00 3.00
2.00 2.00
1.00 1.00
0.00 0.00
Real GDP £ (thousand billions)
1.40 1.40
thousand billions
Potential GDP
1.30 1.30
1.20 1.20
1.10 1.10
00 01 02 03 04 05 06 07 08 09 10 11 12
Source: OECD World Economic Outlook
And high long term unemployment
UK's Long Term Jobless Problem
Millions, seasonally adjusted, using Labour Force Survey data
1.6 1.6
1.4 1.4
1.2 1.2
Unemployed for up to six months
Persons (millions)
1.0 1.0
millions
0.8 0.8
Unemployed for over 12 months
0.6 0.6
0.4 0.4
0.2 Unemployed for over 24 months 0.2
0.0 0.0
92 94 96 98 00 02 04 06 08 10
Source: Reuters EcoWin
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4. Where Will Growth Come From? 17/02/2011
Investment and Productivity
Investment and Productivity in the UK Economy
Quarterly value of capital spending at constant 2003 prices, index of labour productivity
102.5 102.5
100.0 100.0
2006=100 (millions)
97.5 97.5
millions
95.0 95.0
92.5 92.5
90.0 90.0
87.5 87.5
85.0 85.0
65 65
60 60
Real value of capital spending, £bn per quarter
55 55
£ (billions)
billions
50 50
45 45
40 40
35 35
30 30
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Source: Reuters EcoWin
Fiscal austerity & public sector jobs
2011 will see a big public sector jobs squeeze
UK Public Sector Employment as % of Total Employment
21.25 21.25
21.00 21.00
20.75 20.75
20.50 20.50
GBP (millions)
20.25 20.25
millions
20.00 20.00
19.75 19.75
19.50 19.50
19.25 19.25
19.00 19.00
02 03 04 05 06 07 08 09 10
Source: Reuters EcoWin
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5. Where Will Growth Come From? 17/02/2011
Relative international performance
Using data for % annual change in GDP per capita
from 1997-2010
The UK does not come out too badly!
◦ UK 1.19%
◦ USA 1.05%
◦ Germany 1.03%
◦ Japan 0.77%
Improved employment rates have helped
But key in the long run is higher productivity from
our factor inputs and productivity gap remains
Relative Productivity Improves
UK remains 13% less productive than the USA
measured by GDP per hour, $PPP
There have been some improvements in overall GDP
per capita in the UK
The GDP has closed with Germany and on some
measures we have now overtaken them
Reasons:
◦ % of UK workers with a college degree has risen by 12%
from 1997-2010 – up-skilling of labour force
◦ Increased intensity of competition in product markets
◦ Impact of foreign direct investment
◦ Better management practices from private equity boom
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6. Where Will Growth Come From? 17/02/2011
Productivity Improvements
UK Labour Productivity and the Cycle
Annual % change in output per worker for the whole economy
4 4
Real GDP
3 3
2 2
1 1
Labour productivity
0 0
Percent
-1 -1
-2 -2
-3 -3
-4 -4
-5 -5
-6 -6
04 05 06 07 08 09 10
Source: Reuters EcoWin
Output per person hour
United Kingdom Labour Productivity
Index of output per hour worked, whole economy, seasonally adjusted
105.0 105.0
102.5 102.5
100.0 100.0
97.5 97.5
95.0 95.0
92.5 92.5
Index
90.0 90.0
87.5 87.5
85.0 85.0
82.5 82.5
80.0 80.0
77.5 77.5
95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
Source: Reuters EcoWin
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7. Where Will Growth Come From? 17/02/2011
But Productivity Gap Remains (1)
1/ UK has an innovation deficit
◦ UK 2nd to US in terms of top scientific papers
cited
◦ But commercialisation of innovation is weak – i.e.
turning R&D into commercial patents with real
value
◦ R&D as a share of GDP remains low and has
actually fallen over the last 20 years despite
many tax incentives
◦ Deep-rooted failures in the market for knowledge
because ideas are promiscuous and the free-
rider effect is hard to avoid
But Productivity Gap Remains (2)
2/ Weaknesses in management practices
apparent
◦ US firms seem to use ICT more effectively in
long run
◦ UK management is mid-table by international
standards on a par with Canada, Italy & Australia
◦ US economy appears better at weeding out
weaker firms
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8. Where Will Growth Come From? 17/02/2011
Intensity of competition does influence
the quality of management
When market competition is fierce:
◦ Badly run firms more likely to exit (selection effect)
◦ Forces badly run firms to try harder to survive in
their market (effort effect)
Family-run firms which are passed on tend to be
relatively badly run
◦ Smaller pool of people to select CEO from
◦ Possible “Carnegie Effect” on future CEOs - if you
know you will inherit the firm one day
◦ Less career incentives for non-family managers
◦ Might also be a lack of fundamental dynamism
especially in small to medium sized family run
enterprises
Britain needs a Plan V (Viagra!)
Get the conditions right for long term growth
Stronger commitment to trade and competition
Incentivise R&D as social return is twice the private return
Tax reforms to remove 100% inheritance tax exemptions for
family businesses to encourage improved management
Focus human capital investment at lower skilled and
younger workers E.g., expanded apprenticeships
Avoid damaging migration caps and removal of teaching
subsidies for universities – in a global war for talent
Focus on sector growth in industries where competitive
advantage can be successfully nurtured and exploited.
Namely...healthcare, niche manufacturing, green energy,
universities, bio-pharmaceuticals, creative industries
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