Essay on economics growth

The following conditions must be satisfied for attaining technological advancement in a country: As underdeveloped countries have failed to fulfill these conditions thus their development process is neither self-sustaining nor cumulative. Thus in order to attain a higher rate of development, the underdeveloped countries should adapt only that type of technology which can suit their requirements. Developing countries like Mexico, Brazil and India have been applying technologies developed by advanced countries as per their own conditions and requirements.

Essay on economics growth

Economic growth, which reflects the overall performance of a country, is one of the most important macroeconomic goals that a country seeks to achieve and maintain.

It must be sustained in order for economic development to be achieved Desmond, et al, Besides taxes as an instrument of fiscal policy, governments might use their expenditures, as another instrument, to achieve economic growth.

In the past two decades, the Palestinian economy was going through fluctuating behavior. It was affected by different social and political situations.

Gross domestic product GDP the most important indicator of economic growth varied with different percentages over these two decades. Moreover, GDP started and continued to decrease as a result of Israeli military measures during the years of the second intifada Therefore, it can be said that Palestine, as an occupied small country, has a very fragile and sensitive political, economical and social situation due to the Israeli occupation.

Much attention should be paid to the Palestinian economy, in particular to the governmental policies used in order to analyze the reasons and effects of such a fragile economy on the other aspects of life.

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Theoretical Background and Literature Review: This study uses the definition of economic growth as an increase in real GDP. Economic growth can be measured by comparing real GDP for different years.

Government spending expenditurewhich Essay on economics growth be the main focus of the study, is the acquisition of goods and services either for current use, to directly satisfy individual or collective needs of the members or for future benefits such as infrastructure investment.

It includes all government consumption and investment but excludes transfer payments made by a state Barro and Grilli, There have been several schools of thoughts regarding the impact of government expenditure on the economic growth.

The classical school viewed that countries with higher government expenditure would experience lower economic growth Ricardo, While the Keynesians viewed that the increase in government expenditure leads to higher economic growth Keynes, However, the neo- classical viewed that there is no long run impact of government expenditures on the economic growth rate Solow, Moreover, Economists of Endogenous Growth Theory such as Barro suggested that government expenditure induces economic growth.

There have been several studies interested in the impact of government expenditure on economic growth. For example, Mohammadi, Maleki and Gashti analyzed the effect of governmental expenditure composition on the Economic development of economic cooperation organization countries ECO: They focused on three types of government expenditures: The real per capita of GDP in period t was the dependent variable where real per capita of GDP in period t-1, government expenditure on health to GDP ratio in period t, government expenditure on education to GDP ratio in period t, government expenditure on defense to GDP ratio in period t, the investment in period t, total of Population growth rate, technological growth and the depreciation rate in period t and other financial variables as a share of GDP in period t formed the independent variables.

The dynamic panel data method, the generalized method of moments GMM and the Sargan test were conducted. The results showed that the health expenditure has significant and negative effect on growth, educational expenditure has significant and positive effect and the governmental defense expenditure has significant and positive effect on the economic development of ECO countries.

The dependent variable in this study was per capita GDP growth while the growth of per capita public health expenditure in the GDP, growth of per capita public spending on education in the GDP, population growth, growth of the share of total health expenditure in the GDP and the share of gross capital formation in the GDP formed the independent variables.

Data for all variables were obtained from the World Development Indicators and Least square multiple regression analysis and t-test were used to estimate the specified model. Results showed that the share of gross physical capital formation in the GDP is not significant, developing countries in which the government continues to increase per capita spending for health care and education relative to income are expected to grow faster and that the growth of the share of total health expenditure in the GDP also influences per capita GDP growth of countries included in this study.

Also, Yu, Fan and Saurkar assessed the impact of the composition of government spending on economic growth in 44 developing countries 44 developing countries The aggregate national GDP were used as the dependent variable while the explanatory variables included labor, gross capital stock, and capital stock of various government expenditures.

Results showed that the various types of government spending have different impact on economic growth. In Africa, government spending in human capital was particularly strong in promoting economic growth. In Asia, capital, agriculture, and education expenditure promotes economic growth.

In Latin America, none of the government spending items has any significant impact on economic growth. The main question that will be answered: This will be achieved by answering the following sub-questions: The Objectives of the Study: The main objective of the study will be to analyze the impact of government expenditures as a total and its components on the Palestinian economic growth.

Moreover, the specific goals to be achieved are: The Importance of the Study: However, government expenditures and taxes are two tools of fiscal policies that can be used to achieve the desired economic growth in Palestine.

Essay on economics growth

Government expenditures are more controlled by the Palestinian authorities, which give them the preference over the other instruments of fiscal policy in this study.In this essay we will discuss about the Economic Development of a Country. After reading this essay you will learn about: feelthefish.comic Growth and Economic Development feelthefish.cominants of Economic .

ECONOMICS CHAPTER 1 ECONOMIC WAY OF THINKING SCARE RESOURCES WEALTH OF THE NATIONS ECONOMICS: ADAM SMITH STAR CITY Scarcity Scarcity is the basic and central economic problem confronting every society.

Amartya Sen defines economic development in terms of personal freedom, freedom to choose from a range of options. While economic growth may lead to an increase in the purchasing power of people, if the country has a repressed economy, there is lack of choice and hence personal freedom in restricted.

Essay on Economic Growth And Development Of Australia - Economic growth is an increase in capacity of an economy to produce goods and services, compared to from one period of time to another. Essay on Economic Growth - Economic growth is the most important study in economics today. The first book on economics was by Adam Smith The Wealth of Nations the full title was the Inquire Into The Nature And Sources Of The Wealth Of Nations.

feelthefish.comic Growth and Education. Education plays an important role on the road to economic growth of an economy. It could vary from education of employees to new technologies to education of the children, the future generation.

Literacy is important nowadays anywhere, because it helps communicate easily and if needs be in different languages.

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