In economics, growth is mean by the increases of long-term capital per output of a country. Changing in technology is one of the major factors that impact the economic growth. In the growth of long-term, the economic environment of improving the technology can affect the productivity by more or lesser efficiency. Technology is defined as the production, qualification, utilization, and instruments of information, machines, strategies, frameworks, and techniques for association to solve the issue, enhance a previous answer for an issue, or accomplish a goal (Boundless, 2016b). The government of a developing country attempts to guarantee that the advances, aptitudes, learning, and strategies for assembling are tried and grown with the goal that
Increasing taxes, especially on the rich, generates more money for the government to spend on public healthcare, education, etc. These benefits can thus be extended to a larger section of the population and the skill sets of the population rise. This spur in productivity leads to economic growth in the long run. The government can also invest in the Research and Development sector to give an impetus to innovation. The increased revenues from taxes can be utilized on infrastructure projects.
Definition Entrepreneurship, economists, politicians, community leaders and citizenship are usually interested in the economic growth of a country and how it affects business cycles in the end. Mohr et al. (2015:410) define economic growth as the annual rate of increase in the total production or income in the economy while Noel, T. P. (2012) refers economic growth as an increase in the productive capacity of an economy as a result of which the economy is capable of producing additional quantities of goods and services. The importance of economic growth From economists’ perspective, economists must be able to analyze a country’s current economic environment. Mohr et al.
Economic analysis is important in order to understand condition of an economy. The level of economic activity has an impact on investment in many ways. If the economy grows rapidly, the industry can also be expected to show rapid growth and vice versa. The degree of economic growth is directly proportional to the stock price i.e. when the economic activity is high, the stock prices are also high indicating the prosperous outlook for sales and profit of the firm.
This involves various facet of the economy which includes, for example, the discovery of more natural resources, investment in physical capital, growth in population, investment in human capital and most importantly, technology. To determine economic growth in a country is to calculate its Growth Domestic Product rate. With a promising economic growth,
His ‘dash for growth’ led to the Barber boom. Unfortunately, it also led to inflation and unsustainable growth (BBCNEWS, 1999). 3.3. Supply Side Policies Supply side policies refer to the policies that are design to increase the rate of the economy growth in a long run by improving the productivity and efficiency of the
The GDP growth rate and employment rate peak up during the expansion phase while the economy reaches its low point during the contraction phase. These business cycles help an economy to get rid of companies that have lost their relevance. The central banks around the world try to moderate economic cycles through various policy tools to maintain the trend growth rate of countries. The IT bubble of 1997--2001 and housing led economic boom of 2003-2008 are two recent examples of global business cycles. The economic landscape of the world includes extremely wealthy countries whose per capita GDP is almost 60 times more than that of bottom 10% countries.
As the economy grows, banks increase their loans to meet the growing needs of the economy, such as paying wages or remunerating other factors of production. The creation of money is thus parallel to the creation of income. As is argued by Joan Robinson (1956) and by post- Keynesians in general, the supply of money increases with the needs of production, in response to expectations of aggregate demand, through the banking system (see Arestis and Eichner, 1988). There are three distinct theories of money supply endogeniety: those presented by Accommodationists‟, Structuralists‟ and the Liquidity Preference School (see Kaldor, 1970; Basil Moore,1988; Palley, 1996; Arestis and Howells,
Increasing the cash-deposit ratio, the use of special deposits, use of directives, moral Suasion and funding. 2. The use of a Fiscal Policy: A fiscal policy involves the use of government tax (or income) and expenditure policies to regulate the economy. It includes: i. Tax Policy: The government could increase taxes on income.
INTRODUCTION One country, increasing the amount of scarce resources or to have their limit the expansion of production facilities by improving their quality or production technology go to higher production levels and changing the institutional framework "Economic growth" is expressed. Economic growth, but also to raise real GDP per capita can also be defined as the continuous increase of production factors. Resources have greatly improved and highly industrialized the first and most important issue is to ensure the full operation of those resources for the country. Undeveloped industrialized countries achieving economic growth comes first of all problems and their positive whether you can connect to the solution is greatly affected. However,