ECONOMY
DIFFERENCES BETWEEN ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT: - This chapter reviews the literature that tries to explain the disparity and variation of GDP per worker and GDP per capita across countries and across time
INCOME AND WELFARE - There is a big relationship between cross-country income differences because high income levels reflect high standards of living .Having insufficient money to lead a healthy life is a highly significant cause of health inequalities, there is a clear relationship between wealth and health - the wealthier you are the heathier you are likely to be.
Economic Growth and Income Differences - Some reasons one country is richer than another:
- An increased economic growth with increased capital input.
- Their growth can be considered counter-productive, in terms of employment for an economy.
- The correlation between growth and income is well know.
- Usually measured using GDP and labour earnings.
- Sustainable increase in living standards.
- Life expectancy is positively correlated with incomes.
Why r they growing at a steady pace? - Huge economic progress in the case of the income per capita´s evolution.
- Educated people are more productive and can innovate on existing technology.
- Qualifiers workers have powerful effects on individual earnings, on the distribution of income and on economic growth.
Origins of today´s income differences&world economic growth - They kept an ideal annual growth to maintain effiency.
- People could choose to work fewer hours.
- Countries that were poor not so long ago grew rapidly.
- Increased economic growth with increased capital input.
- Sustainable increase in living standards.
An economic inequality or the gap between rich and poor countries, income inequality, wealth and income very difference. - An economic inequality or the gap between rich and poor countries, income inequality, wealth and income very difference.
- Growing inequality was one of the biggest social, economic and political´s challenges.
- Emerging economies´s countries are more unequal than rich ones.
- European countries have the smallest income disparities with a low coefficient for disposable incomes
- The idea of convergence in economics (also sometimes known as the catch-up effect) is the hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies. As a result, all economies should eventually converge in terms of per capita income.
Correlates of economic growth - What types of countries grow more rapidly? In other words, we would like to learn which specific of characteristics of countries (including their policies and institutions) have a casual effect on growth.
From Correlates to Fundamental Causes - South Korea
- Singapore
- Nigeria
The Agenda - The 3 major questions that have emerged from the brief discussion are;
- -Why are there such large differences in income per capita and worker productivity across countries?
- -Why do some countries grow rapidly while other countries stagnate?
- -What sustains economic growth over long periods of time and why did sustained growth start 200 years or so ago?
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