What is Economic growth? As defined in an online guide, Economic growth is a long-term expansion of the productive potential of the economy (Riley, 2014). In other words, it is also explained as a constructive change in the entire out-turn or production of a country and an economy over time. It is essential for reduction in long-term poverty and also to improve the nations’ living conditions. 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.
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
Reports published by international donor and development agencies like USAID, JICA, GIZ, DFID, AfD, AusAID, UNIDO, UNDP, ADP and WB have also stressed on infrastructure development and private investment facilitation in diversified valued added products and markets to enhance stagnant exports with a view to achieve sustainable long term economic growth. Many of these development agencies have implemented competitiveness improvement programs in high growth sectors of the
Both demand and supply factors are important in sustaining the growth of the economy. Mohr et al. ( 2015:414) state that supply factor caused an expansion in the production capacity of the economy. Therefore, it requires an increase in both the quality and quantity of labor, capital, natural resources, and entrepreneurship. These four factors of production play an important role in the economy of each country but natural resources and capital explain the growth of the economy in many countries.
After the Second World War, economic factors became more and more important in the world. Both developed and developing countries want to improve their economic development rapidly. After, the developed countries increase economy successfully by free trade; the developing countries started to follow their steps. From that time, global economy began to burgeon. Economic globalization provides many chance
Internationalization has a form in vertical integration which would bring new operations and activities. Concept of internationalization Internationalization is the outward movement of a firms operations. Although both inward and outward is important for the growth of international firms. With many of these studies being researched a framework has been built. Internationalization is so dynamic and is continually growing it is one the most advanced and mature areas of international business.
First would be the relationship between innovation and economic development. The relationship among those two is significant since it will allow certain countries to enhance as time passes on. One major example of this would be the technological innovational advancements (Entrepreneurship, 2014). Technological innovational advancements impact economic growth. It allows certain countries to progress and improve as time passes.
What is economic growth? It is referred to as the rise in the market value of the goods and services that are provided by an economy. It is measured in terms of percentage of the gross domestic product (GDP).Economic growth helps in improving the standard of living for an individual as well as a community. In today’s competitive world it is very important to help forms of businesses carry out sale and purchase of goods and services so as to develop the economy. Seeing this ongoing development in our economy in today’s world, we have come a long way.
Capital as a factor of production plays a leading role in economic development and the function of the financial market in making funds available to the deficit units from the surplus unit, can be seen as a tool to enhancing capital formation . According to Bakare (2011), Capital formation refers to the proportion of present income saved and invested in order to augment future output and income. Economic theories have shown that capital formation plays a crucial role in the models of economic growth. Growth models like the ones developed by Romer (1986) and Lucas (1988) predict that increased capital accumulation can result in a permanent increase in growth rates. The neoclassical economists suggest that economic growth is entirely
Foreign direct investment (FDI) include foreign ownership of productive assets, such as textile factories, mines and land. Due to increasing foreign investment one country can compete an international level and hence FDI is a important measure of increasing globalization. Any shape of Investment brings a progressive outcome in an economy, May on national level or international level. Now a day’s foreign direct investment (FDI) is very important part of international economics. IN case of Pakistan where markets and economy are developing so in this case Pakistan is much need of foreign investment.