Why are national growth rates so similar

Why are national growth rates so similar? Why do some countries experience spectacular levels of growth? 1/3

Growth rates across the world 65-95:

  • “spectacular”: China (8.2% 80-95)
  • “very good”: East Asia (5.5% 65-90)
  • “decent”: South East Asia
  • “bad”: Latin America
  • “very bad”: Sub-Saharan Africa

Why are national growth rates so similar? Why do some countries experience spectacular levels of growth? 2/3

Making sense of growth figures:

  • small numbers go a long way: the number of years necessary to double income is equal to 70/growth rate
  • if the economy is growing at 5% per year, it will
  • take 14 years to double in size
  • if the economy is growing at 1% per year, it will
  • take 70 years to double in size

Why are national growth rates so similar? Why do some countries experience spectacular levels of growth? 3/3

 

USA, UK and EIRE

 

China and India

 

Brazil, S. Korea, Philippines

 

Economic growth determinants: stylised facts

1.Output per capital and capital intensity keep increasing Labour (L) measured in man-hours grows more slowly than capital (K) and output (Y)

This means that (K/L)↑ and (Y/L)↑Capital

2. Output ratio is trendless

3. Hourly wages keep increasing

4. The rate of profit is trendless

5. The relative share of GDP going to L and K is trendless

Essay writing skills: 論文代寫

2015-01-18T20:41:08+00:00 July 1st, 2014|講義|