Three essays on growth and the world economy

The authors have declared that no competing interests exist. Conceived and designed the experiments: Received Nov 5; Accepted Jan 2.

Three essays on growth and the world economy

Gross domestic product The economic growth rate is calculated from data on GDP estimated by countries' statistical agencies. The rate of growth of GDP per capita is calculated from data on GDP and people for the initial and final periods included in the analysis of the analyst.

Determinants of per capita GDP growth[ edit ] In national income accounting, per capita output can be calculated using the following factors: Productivity improving technologies economic history Economic growth has traditionally been attributed to the accumulation of human and physical capital and the increase in productivity and creation of new goods arising from technological innovation.

Increases in productivity are the major factor responsible for per capita economic growth — this has been especially evident since the midth century.

Most of the economic growth in the 20th century was due to increased output per unit of labor, materials, energy, and land less input per widget.

The balance of the growth in output has come from using more inputs. Both of these changes increase output.

Three essays on growth and the world economy

The increased output included more of the same goods produced previously and new goods and services. During the Second Industrial Revolutiona major factor of productivity growth was the substitution of inanimate power for human and animal labor.

Also there was a great increase in power as steam powered electricity generation and internal combustion supplanted limited wind and water power.

Other productivity improvements included mechanized agriculture and scientific agriculture including chemical fertilizers and livestock and poultry management, and the Green Revolution. Interchangeable parts made with machine tools powered by electric motors evolved into mass productionwhich is universally used today.

Real food prices fell due to improvements in transportation and trade, mechanized agriculturefertilizersscientific farming and the Green Revolution. Great sources of productivity improvement in the late 19th century were railroads, steam ships, horse-pulled reapers and combine harvestersand steam -powered factories.

By the late 19th century both prices and weekly work hours fell because less labor, materials, and energy were required to produce and transport goods.

However, real wages rose, allowing workers to improve their diet, buy consumer goods and afford better housing.

New goods and services included television, air conditioning and commercial aviation aftercreating enough new demand to stabilize the work week. Productivity in the United States grew at an increasing rate throughout the 19th century and was most rapid in the early to middle decades of the 20th century.

Demographic changes[ edit ] Demographic factors may influence growth by changing the employment to population ratio and the labor force participation rate.

Women with fewer children and better access to market employment tend to join the labor force in higher percentages. There is a reduced demand for child labor and children spend more years in school.

The increase in the percentage of women in the labor force in the U. Spending wave Other factors affecting growth[ edit ] Political institutions, property rights, and rule of law[ edit ] See also: These included new laws favorable to the establishment of business, including contract law and laws providing for the protection of private property, and the abolishment of anti-usury laws.

Enforcement of contractual rights is necessary for economic development because it determines the rate and direction of investments. When the rule of law is absent or weak, the enforcement of property rights depends on threats of violence, which causes bias against new firms because they can not demonstrate reliability to their customers.

Thanks to the underlying homogeneity of its land and people, England was able to achieve a unified legal and fiscal system since the Middle Ages that enabled it to substantially increase the taxes it raised after Many of these intermediate level institutions relied on informal private-order arrangements that combined with public-order institutions associated with states, to lay the foundations of modern rule of law states.

In many urban areas the poor "invade" private or government land to build their houses, so they do not hold title to these properties. Much unregistered property is held in informal form through various property associations and other arrangements. Reasons for extra-legal ownership include excessive bureaucratic red tape in buying property and building.

In some countries it can take over steps and up to 14 years to build on government land.The economy of India is a developing mixed economy.

Three essays on growth and the world economy

It is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP). The country ranks th in per capita GDP (nominal) with $2, and nd in per capita GDP (PPP) with $7, as of After the economic liberalisation, India achieved % average GDP growth annually.

INTRODUCTION. In , when the author of the essays here assembled was elected professor of political and social science in Yale College, he was, to use his own words, “a young and untried man.” He was selected for his position, not as a specialist, but because he was what he was.

Someone in those days must have been an excellent judge of men. This growth has been sustainable and faster than all other regions of the world (see fig. 1). This region consists of twenty-three economies but it was just eight who caused most of this amazing growth.

Find essays and research papers on Economics at torosgazete.com We've helped millions of students since Join the world's largest study community. Economic growth rates are the lowest of the scenarios (particularly low in developing countries) and decrease with time, while population growth is the highest.

Adapting Mosaic – In this scenario, regional watershed-scale ecosystems are the focus of political and economic activity.

Critical Review: Reich’s Why Growth is Good. Reich argues that economic growth leads to increased prosperity in the developed, emerging and developing world.

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