Professional Documents
Culture Documents
DEVELOPMENT
ECONOMIC GROWTH
- An increase in the capacity of an
economy to produce goods and
services, compared from one period
of time to another. Economic growth
can be measured in nominal terms,
which include inflation, or in real
terms, which are adjusted for
inflation. For comparing one country's
economic growth to another, GDP or
GNP per capita should be used as
these take into account population
differences between countries.
Economic Development
- Progress in an economy, or the
qualitative measure of this.
Economic development usually
refers to the adoption of new
technologies, transition from
agriculture-based to industry-based
economy, and general improvement
in living standards.
http://www.lewishistoricalsociety.com/wiki/tiki-read_article.php?articleId=7
2#
2.
Transitional Stage
AKA the preconditions for takeoff. Under the model, the process of
development begins when an elite group initiates innovations economic
activities. Under the influence of these well-educated leaders, the
country starts to invest in new technology and infrastructure, such as
water supplies and transportation systems. These projects will
ultimately stimulate an increase in productivity likely increasing the
GDP. There is a limited production function, and therefore a limited
output. There are limited economic techniques available and these
restrictions create a limit to what can be produced. Increased
specialization generates surpluses for trading. There is an emergence
of a transport infrastructure to support trade. External trade also
occurs concentrating on primary products.
3.
Takeoff
4.
Drive to maturity
5.
High Mass
Consumption
http://www.lewishistoricalsociety.com/wiki/
tiki-read_article.php?articleId=72#
http://reports.weforum.org/global-competitiveness-report-20142015/methodology/
Expenditure Approach
The expenditure approach utilizes four main components:
FORMULA: GDP = C + I + G + (X - M)
Where,
Regional
Gross
Output
Wages
Employment
Others