Life expectancy has increased by years, illiteracy and fertility have been halved and democracy has taken hold throughout the region. In agreement with haller 25, 26, we make the distinction between sustainable economic development and sustainable social development, that is, the economic one is synonymous to growth. Productive capacity is defined broadly as the natural resource potential, accumulation of human capital and the institutions that facilitate inclusive and sustainable economic growth. Lets take a separate look at what indicators comprise economic. Economic growth, inflation, and unemployment are the big macroeconomic issues of our time. The development of a general theory of economic growth presupposes the existence of some discernible real phenomenon or process which we can agree unambiguously to call economic growth. The process of capital formation is cumulative and selffeeding and includes three interrelated. Nafziger explains the explanations for the current quick progress of india, poland, brazil, china, and different pacific rim nations, and the sluggish, but important, progress for a turnaround of subsaharan africa. Economic growth and development determine social progress, that is the progressive evolution of the society, which involves an improvement of the human condition, a step higher on the scale of the human beings standard 8, based on economic progress.
This paper analysis direct and indirect impact of economic growth on global competitiveness, with human development as moderator variable. Over 40 years, latin america has made giant strides in some of these social and political areas, yet lags behind in others. Economic growth and economic development and factors determining the economic growth are discussed in section 5. Thus, it presupposes agreement on a uniquely correct definition of economic growth. When the capital stock increases with the passage of time, this is called capital accumulation or capital formation. Productive capacity and economic growth in ethiopia.
There is no general agreement on what should be in. As national income increases, employment increases. Capital means the stock of physical reproducible factors of production. The increase in output per capita in economic theory is expressed as economic growth, without which no economic development, but does not have any economic growth to be a function of economic development. The book is appropriate for these with a background in economics rules. Inflation and unemployment are closely related, at least in the shortrun. Economic growth is a primary focus of macroeconomists, who rely on quantifiable metrics such as gross national product or aggregate income feldman, hadjimichael, kemeny, and lanahan, 2014.
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