Essay On Economic Growth

Essay on Economics and Growth
Causes of increase in equilibrium price
Equilibrium price is the price at which the quantity demanded in the market by consumers balances
with the quantity supplied in the market by the suppliers (Gillespie 2007). Apparently, there are a
range of factors that determines a specific commodity's supply and demand at the market place.
Consequently, changes in these factors influences the shifts in the equilibrium price of that
commodity (Sloman, 2007, p. 51–182). For instance, assuming the supply of a commodity is
invariable, if there is a positive change in buyers' income sources causing its increment or if tastes as
well as preferences of the consumers shift in regard to the particular commodity under consideration.
In essence, the effect...show more content...
With a decrement in supply, the supply curve shifts inwards along the demand curve, causing a new
equilibrium price as well as equilibrium quantity to be achieved. In this case, the equilibrium price
will increase, whereas the equilibrium quantity will decline (Gillespie 2007, p.72–99).The diagrams
below illustrate causes of increase in equilibrium price:
Market Demand and equilibrium price (Market Demand and equilibrium price cited in Gillespie
2007, p.72–99)
As an illustration, considering the graphs above, where P typifies the price, D stands for Demand,
Q represents quantity, and S denotes supply. Therefore, with an increase of demand as a result of
changes in factors that favour a given commodity, the demand curve D1 will move along the
supply curve to a new position, which is D3. This movement leads to a new and higher equilibrium,
which in this case is P3. Again, a new equilibrium quantity is attained. On the other hand, the
opposite effects will take place if there is an inward change of demand (Gillespie 2007, p.29–101).
Market supply and equilibrium price (Market supply and equilibrium price cited in Gillespie 2007,
p.72–97)
According to (Begg, Fischer, and Dornbusch, 2003, p.16–89), the inward movement of the supply
curve reduces the supply level in the market of the commodity under consideration. As shown in the
graph above, there is a will be shift inwards along the demand curve D2. This will cause the supply
curve to shift position from S1
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Development is one of the most important factors of human life and one of the abilities which
distinguish humans from animals. Over time, humans have realized their power to gain whatever
they want from the environment. However, it has not taken too long for people to understand that
this trend can end up with a disaster. Over consumption of limited natural resources can cause
environmental degradation in an environment that humans are depends on it for living. This essay
will look into the concept of economic growth and the effects of economic growth on the
environment. Then, by analyzing the current situation, this essay will attempt to answer the question
"how and how much can humans reduce environmental degradation?" The concept of...show more
content...
*Therefore, it is more accurate to not consider development just as economic growth. Also, consider
the other aspects of the development such as social changes and technological development. Is
environmental degradation an inevitable consequence of economic growth? Some specialists believe
that inevitable consequence of economic growth is environmental degradation and humankind's
future will doom. Although this is a negative and unrealistic projection of future, economic growth
can be harmful to the nature in many ways such as: global warming, effects of pollution growth,
extinction of species and consuming natural resources. However, if other side of development (social
and technological development) is considered, there are many ways to prevent environmental
degradation. Experience shows that technology can prevent or reduce many aspects of
environmental degradation. For example replace toxic materials with eco–friendly biodegradable
materials. The detergents which are used in industries and houses made foamy sewage and it
pollute entire cities coast. On 1964 synthetic detergents that can be destroy by microorganism in
the soil was founded. From then it was only a one year task to solve this problem for ever
(Cubane, 1964). Recycling is another method of using technology to prevent the environmental
degradation. In Pacific Ocean there is an area with size of Texas which is covered by plastic wastes.
Plastic is not a biodegradable

Essay on Economic Growth and Development
Economic growth is a necessary but not sufficient condition of economic development.
There is no single definition that encompasses all the aspects of economic development. The most
comprehensive definition perhaps of economic development is the one given by Todaro:
'Development is not purely an economic phenomenon but rather a multi – dimensional process
involving reorganization and re orientation of the entire economic and social system.
Development is a process of improving the quality of all human lives with three equally important
aspects. These are:
1. Raising peoples' living levels, i.e. incomes and consumption, levels of food, medical services,
education through relevant growth processes.
2. Creating...show more content...
Amartya Sen defines economic development in terms of personal freedom, freedom to choose
from a range of options. While economic growth may lead to an increase in the purchasing power
of people, if the country has a repressed economy, there is lack of choice and hence personal
freedom in restricted. Hence once again growth has taken place without any development.
While economic growth may result in an improvement in the standard of living of a relatively small
proportion of the population whilst the majority of the population remains poor. It is how the
economic growth is distributed amongst the population that determines the level of development.
Taking into consideration the trickle–down theory of economics by
Lewis, if the growth in economy is not sufficient to satisfy the needs and wants of the upper sections,
nothing or very little shall trickle down to the lower sections in the hierarchy of society. Thus, the
gap between the rich and poor widens and though economic growth has impacted a certain section of
society, this cannot be considered development. Another example is an increase in the defence
output of a nation, which accounts for an increased GDP but does not in any way contribute to
economic development.
Economic growth is not enough in itself to measure economic development as even if there has
been a leap in the income of people in a particular nation,

Economic Development And Economic Growth
To what extent should government in developing countries pun inequality in the policy agenda?
High and sustainable economic growth is the main condition for the sustainability of economic
development and increase prosperity. As the population increases each year, the consumption is also
increasing. Further more, demand, supply and population growth also require employment growth as
a new source of income, because if not so then economic growth will lead to poverty. Many
economics literatures review the correlation between income inequality and economic growth and
the results show that inequality negatively affected economic growth (Boushey and Price, 2014).
Moreover, Ravallion (2014) argued that, particularly in developing countries, initial inequality and
changes in inequality in the period of economic development influence economic growth. Economic
growth can be derived from the growth in aggregate demand and aggregate supply. For that reason,
income inequality should be at the forefront of many developing countries' policy agenda, and this
essay, on the other hand, focuses on how inequality in income affects economic growth, particularly
in the aggregate demand side. According to Oxford Dictionary of Economics (2009), aggregate
demand is define as the total of intended attempts to spend on final goods and services produced in a
country. Aggregate demand further described as the sum of consumption, investment on capital,
government spending, and net exports (McCormick,

Economic Growth and Environment
Professor: Wuu–Long Lin
Student: Yin–Chun Chou
Student ID: 11602318
Table of Content
1.Introduction
2.Review of the literature
3.The methodology used in the study – Environmental Kuznets Curves
4.Analysis
4.1 Industrial Ecology
4.2 Is Environmental Protection Too Expensive?
4.3 Does Environmental Protection Reduce Economic Growth?
5. Policy Recommendation
List of References
1. Introduction The natural environment is the foundation to economic growth. Productivity cannot
stand alone with the artificial intelligence and technology. Let's face the most important issue on the
earth–the natural resources are limited. People have to consume environmental resources in
sustainable methods – whether by improving the efficiency of resource consumption or by adopting
new techniques and product designs. It also means that do not overuse the resources to avoid the
natural assets cannot be recovered after excess economic activity. While environmentalsustainability
is the important government policy, the protection of the environment and the economic growth are
usually seen as competing aims. Some European entrepreneur claim that the environmental
regulation is hindering their growth and force them to reallocate the business outside of the Europe.
The objective of this paper is discussion on the relationship between environmental sustainability and
the economic growth. This paper will review the literature and then

The Theory Of Economic Development Essay
The theory of economic development has equipped the underdeveloped countries with a choice
between 'balanced' and 'unbalanced' growth that has been one of the most tendentious topics. One
group advocates the theory of Balanced Growth and refutes, in almost unequivocal terms, the virtues
and utility of the doctrine of Unbalanced Growth, which the other group endorses with great
insistence. These approaches towards economic development have been expounded and interpreted in
various ways in the literature on the subject. In this discourse, I shall elucidate critically the major
features of balanced and unbalanced growth as propounded by their corresponding proponents.
Further, I shall discuss the position, potency and effectiveness of these strategies in India and South
Korea.
The doctrine of balanced growth lays emphasis primarily on the horizontal interdependence in
consumption demand. According to this conviction, in order to maneuver through the stagnant
levels of income and productivity in the underdeveloped countries to successfully initiate the process
of development, it is essential to simultaneously invest in a number of projects spread over several
supporting, mutually interdependent industries. An elaborate network of complementary enterprises
could produce inducement for further investment by providing demand for each other's output. This
aspect of balanced growth theory received considerable attention from three developmental thinkers
– Paul Rosenstein–Rodan,

TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION .................................................. 1
Background ............................................................................. 1
1.4 Climate change adaptation and mitigation ...................................... 9
1.7 Problem Statement .................................................................... 11
1.8 Objectives of the study ............................................................... 13
1.9 Research questions .................................................................... 14
1.10 Significance of the study ............................................................ 14
CHAPTER TWO: LITERATURE REVIEW ....................................... 16
2.0 Introduction ............................................................................ 16
2.1 Conceptual Framework .............................................................. 16
2.2 Empirical Literature ................................................................. 22
CHAPTER THREE: METHODOLOGY ............................................. 25
3.0 Introduction ............................................................................. 25
3.3 Model Specification ................................................................... 26
3.4 Data Analysis and Techniques ...................................................... 26
References .................................................................................... 28
CHAPTER ONE
INTRODUCTION
1.1 Background
The evidence of climate change in Kenya is undeniable, while its effects on economic growth are no
more mysterious; rather, they are rapidly unfolding to a startling reality and concern for humanity.
Accelerated emissions of green house gases (GHGs) globally, from combustion of fossil fuels and
unsustainable land use practices is the key driver of anthropogenic climate change, which is
manifested in; temperature variations, frequent and extensive droughts, intensive rainfalls and
floods, seasonal and regional pest and disease prevalence that result to conflicts for pasture and
water resources,

Economic Growth In Australia Essay
Stable economic growth is a fundamental requirement for the betterment of a country. Employment
and economic growth are interrelated. At present, immigrants of a country provoke economy to
grow by engaging themselves in jobs at the foreign country. According to the United Nations (UN)
International Migration Convention report, approximately 4 percent of the world's population is
migrants. This convention was entered into force on 1 July, 2003 and in this they have resolved
some point that would help to develop the conditions of immigrants. Now the number has increased
and there are estimated 232 million immigrants of whom 59 percent are living in developed
countries. In resolution 63/225, the General Assembly (2013) of UN hold a high level dialogue on
immigration and development to help the economic growth and employment remain stable (Anon,
2016). In ninth coordination meeting on International Migration of UNDP has contributed to the
discussion on development of global immigrants and human mobility. Australia, officially the
Commonwealth of Australia prefers immigrants as their greatest asset and granted visas based on
having skill that are useful for the economy. Its current GDP is 1340.00 USD billions and the...show
more content...
It has constructed some policy on this to maintain illegal immigration problem to ensure stability in
economic growth and employment opportunity in country. DIBP has made a Labor Agreement and
Designated Area Migration Agreement for ensuring development of immigration that will help to
establish stable economic growth through proper employment. Australia has some proposal that can
be beneficial to the world if accepted by WTO– can allow immigrants with permanent residence if
found they are resourceful, enroll in medical insurance scheme, access social security benefits after a
certain period, reducing cost of labor migration, reducing

Introduction Economic development is a new concept that came about in the early twentieth
century. Although, theorists argue that Karl Marx has alluded to the concept earlier in 1887 .
Historically, the increasing importance of the concept can be traced back to the needs approach of
the ILO , World Bank and Amartya Sen's Capability approach (Sen, 1993). Gerald Meier defines
economic development as 'the process whereby the real per capita income of a country increases
over a long period of time – subject to the stipulation that the number below an absolute poverty line
does not increase and that the distribution of income does not become more unequal'. Wherein, there
is evidently a strong relationship between economic growth and development. This essay analysis
the concept of the two terms economic growth and economic development by examining their
characteristic approaches. In turn, understanding the relationship between them. Economic Growth
Economic growth aims at removing obstacles that could come in the way of increasing an economy's
productive capacity, like removing market imperfections that exist in an economy. Supplying the
'missing components' like capital, foreign exchange, technology, skills, and management, which is
needed for improving an economy's productive capacity. Consequently, expecting that the increased
capacity of the economy would somehow reach the masses. Economic Development Economic
development, on the other hand, aims at increasing the

The Economic Growth Of India Essay
Introduction
India has experienced lopsided growth across its major sectors especially after the reform process
have been initiated in the early 1990s. Studies show that if the pre–reform period is compared with
the post–reform period, economic growth has definitely picked up in India. Given the structure of
the economy and the state of human capital availability reforms have led to the increase in share of
the services sector at the expense of industrial and agricultural sectors. On the other hand number of
people living below the poverty–line has also come down during the post–reforms period. Problem is
most of the studies showed inequality in income distribution have actually increased in the
post–reforms period.
West Bengal, with its broad customer base, rich mineral resources and large talent pool, could
emerge as one of the leading states to drive the next phase of industrialization in the country. The
state is a gateway to East and North East, the region that produce 18.38% of India's GDP. Being
strategically positioned for bilateral trade with Bangladesh, Nepal, Bhutan, Myanmar and ready
access to South East Asian countries, over and above the domestic market, West Bengal enjoys a
broader market for its products. A strong industrial base would also, in a way, help the state
economy to make a natural transition in its development quest from being primarily agrarian to
industry driven, moderating the influence of lopsided growth towards services on income

Economic Growth Essay
Economic Growth Economic growth refers to the rate of increase in the total production of goods
and services within an economy. Economic growth increases the productivity capacity of an
economy, thereby allowing more wants to be satisfied. A growing economy increases employment
opportunities, stimulates business enterprise and innovation. A sustained economic growth is
fundamental to any nation wishing to raise its standard of living and provide a greater well being
for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced
over a year. It is the total value of production within the economy. The total value of production is
the total value of the final goods or services less the cost of...show more content...
Real GDP is measured by the following formula; [(current year quantity) x (based year price)]. A
more reliable measure of economic growth is real GDP per capita; this measurement takes into
account both the total production of the nation and the total population. Real GDP per capita
measures the real income per head of the population.
This can be measured by the following formula; Per capita nominal GDP = Nominal GDP
/ Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic
growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an
essential foundation to economic growth. Combined with the other resources of capital, labor and
enterprises, natural resources can be developed and organized to increase the productive capacity if
the nation. Consequently the quality and size of the labor force is a major determinant of economic
growth. Education and vocational training are essential the growth potential of a nation. The
promotion of education and job training schemes increase the knowledge, skills and flexibility of the
workforce that contributes to potentially higher levels of productivity and efficiency. Whether from
natural increase or immigration population growth can cause a higher level of economic growth. An
increasing population requires increased public spending on housing, education and other social
needs while businesses expectations of

Economic Growth in the Late 19th Century Essay
From the year 1865 to 1900 the United States government was attributed to following the standards
of laissez–faire, an economic axiom in opposition of governmental moderation of or meddling in
commerce beyond the merest essential for a free–enterprise organization to function according to its
own economic regulations. The United States government took this stance of noninterference,
however, apparent within the guiding principles concerning railroad land grants, management of
interstate commerce, as well as antitrust actions we see direct governmental intervention and clear
infringement and disruption of laissez–faire ideology.
During the late 19th century many Americans advocated the fosterage of a laissez faire
administration to allow...show more content...
State regulations tended to be inadequate and ineffectual against price injustices apparent in several
Supreme Court cases in the 1860's and 1870's such as the Granger Movement, as well as others. In
response to prior faulty efforts, Congress developed the Interstate Commerce Act of 1887. This act
constructed a commission designed to overlook railway rates to make sure that they were just and
fair, as well as outlawing other inequitable practices taking place during this time. Apparent in a
declaration from the committee of interstate commerce, melancholy and disagreement progressed
amidst small farmers who believed that the government was dispensing the big dealer a favorable
position over smaller traders. As a result, Congress initiated the Interstate Commerce Commission,
which was geared toward establishing an unbiased and just economic system handling the problems
of arbitrary rates and practices. The Interstate commerce act would not stop issues involving railroad
monopolies, although it would establish the archetype of federal moderation on transportation
between states.
Imposed by congress in 1890, The Sherman Antitrust Act was created to forbid trusts and various
other limitations on trade. This new act, believed to end rivalry would prove to be a failure. In the
case of The United States vs. E.C. Knight Company (1896), the Supreme Court discharged the case,
leading to eighteen antitrust proceedings over the period of eleven years.

Essay on India China Economic Growth
ESSAY ON CRITICALLY EVALUATE THE MAIN CATALYSTS TO GROWTH IN CHINA AND
INDIA.
India with about 1.2 million populations and china with about 1.3 billon population are two big
demographic and emerging countries in the world .Over a past few decade IndiaГўв‚¬в„ўs
combination into the economic has been accompanied by remarkable economic growth (World Bank
2011Г‚В¬).India is having the 3th position on the economy in purchasing power parity (PPP) terms
(The Economic Times, 2012). IndiaГўв‚¬в„ўs total GDP (gross Domestic Product) growth was 5.5%
in 2012 and inflation rate is was .........(The Economist, 2012) .According to government of India
poverty has been decline from 37.2% in 2004 to 29.8% in 2010 (world bank 2011).The major
economic growth sectors...show more content...
ChinaГўв‚¬в„ўs domestic savings went from around 23 per cent of GDP in 1960 to 43 per cent in
2002. Both countries open the door and increased their shares of trade (Chakrabarti,

The Economic Growth Of India Essay
INTRODUCTION
The economy of India is based on a sound financial system that helps in accelerating production,
capital and economic growth of the country. One of the main objectives of every financial system
of modern economy to accumulate savings and to develop saving habits among the people. It also
helps the saving to allocate into productive usage such as trade and commerce. The efficient
utilization and allocation of the savings helps in increasing the economic growth of the country. A
well organised financial system also helps in the industrial expansion. India is regarded as one of the
big emerging market economies by the WorldBank along with china, Indonesia, Brazil and Russia.
There has been tremendous financial development in India in the year 1990. It is imperative to know
that in what manner the financial development has taken place in India and what initiatives should
be taken by the country to emerge as a country with efficient financial sectors and markets.
HISTORICAL EVOLUTION OF FINANCIAL MARKET The financial system of the country is the
outcome of its own peculiar historical evolution. The continuous interaction between the players of
the financial system and public policy interventions has given birth to the evolution of the financial
system. India began with the Central Bank and Reserve Bank of India and entrusted upon them the
duty of regulating the banking sectors, Ministry of finance were given the responsibilities of
regulating the other financial

Essay on Causes and Effects of Economic Growth
Discuss the causes and effects of Economic Growth
Economic Growth
Before discussing the causes and effects of economic growth, I will define what economic growth
actually is and distinguish between the two types of growth in the economy; actual and potential. On
the whole, economic growth may be defined as 'a long–run increase in an economy's productive
capacity and trend output'. The long–run output growth trend an economy achieves is indicated by
the path of trend Gross Domestic Profit (GDP) and is usually calculated as a percentage average
annual output growth over a large number of years. This is because, given long enough, the phases
of the business cycle averages out so that increases in the economy's real GDP are largely...show
more content...
–Labour
This is measured in the number of hours worked.
–Capital
This includes machinery and other productive assets which could increase the marginal productivity.
–Entrepreneurial skills
i.e. the business skills which the population has.
If the supply potential is to grow then one or both of the above bullet points must take place. For
this growth to be sustained over the long–term there then must be an increase in potential output, i.e.
the economy capacity to produce must increase.
A low stable inflation and steady growth in aggregate demand is required to produce the type of
macroeconomic situation which encourages economic growth. This is the aim of the governing
bodies that can control this. However, there are various effects of economic growth to economies.
These can either be positive or negative.
Effects of Growth
Benefits of Growth
There are four main benefits of growth to an economy. These are;
Increased levels of consumption
A high level of consumption of goods and services is linked back to a higher real income per head.
This in turn will happen if economic growth outstrips population growth. Overall, if human
wellbeing is related to the level of consumption, then growth provides an obvious advantage to the
society.
It can help avoid other macroeconomic problems

It is only human for people to have wants and wishes of a higher living standard. Without a growth
in productive

The Effect of Education on Economic Growth
The Effect of Education on Economic Growth
Abstract
Education is one of the primary factors of development. Countries can't achieve economic
development without investment in human capital. Vocational training and higher education equip a
worker to perform certain jobs or functions .It improves the quality of their lives and leads to social
benefits to individuals and society like improving income distribution. Education increase people's
productivity and creativity and promotes entrepreneurship and technological advances.
Technological progress reflects the growth of human knowledge.
The purpose of this paper is to examine the role of investment in human capital in promoting
economic growth and...show more content...
This function is not accurate because it doesn't take into account the quality or type of education an
individual has. Human capital is also an important variable in the variation wage function which is
hard to measure too. Human capital includes some feature such as education, work experience, and
health. To estimate human capital, scholars Suggested quantitative measures of quality include
"costs per student, library expenditures, number of earned doctorates among Faculty and
administrators, and student–faculty ratios." However, this estimation of human capital is not
accurate too. Some scholars argue pupil –teacher ratio is alternative measure of resources invested in
education which measure the quantity of education but not the quality. Further more, some research
didn't use the system approach (input, throughputs, and output.) which made some scholar to believe
it underestimate the effect of education spending by failing to observe the possible indirect effect on
economic growth. All these inaccurate measures and disagreements make it difficult to compare the
findings of empirical studies to determine how strong the effect of investment in human capital to
promote growth rates of the economy, but macroeconomists in many research stressed the
importance of education to promote growth.
Theory and previous research
Many previous researches have asserted that education effect economic growth positively. The main
resource of this

Economic Growth Of America Essay
The root of America's economic growth can be traced back to the early settler's ability to farm
there fertile soils producing cash crops such as tobacco and cotton. As the young nation's
population grew, so did the need for supplying its citizens with food. With cities overcrowding the
United States government enacted the Homestead Act of 1962 where millions of acres of
farmland in the Great Plains were given to anyone who wished to go to this area and grow crops
and raise livestock. Within time American farmers in the Great Plains were thriving. However
though by the late 1920s the landscape of American farming was about to change. During the 1920s
many people invested their money into the stock market, a place where shares of public...show more
content...
Since the land value was plummeted most schools couldn't even pay their teachers. Students sat in a
one room school with teachers not much older than them. The bizarre weather like dust, heat, and
snow they made it hard for the students to concentrate on their work. Some teenagers had to quit
school to help maintain their parent's farm in rural America, there was no electricity. Many people
lived in un–healthy conditions, with no form of heat little running water, and little place to store
their food. President Roosevelt decided to present to Congress the Rural Electrification Act. (REA)
On May 20, 1936 Congress passed the REA. This act allowed people from rural America to
modernize their farming equipment. (The Impact of the Stock Markets Crash on Rural

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