Economic Growth

Economic Growth Economic growth is the growth rate of the total output of goods and services in the economy. Economic growth is improving the productivity of the economy, so more demand is being met. Evolving economies have increased employment opportunities and stimulated business and innovation. Sustained economic growth is important for countries that want to improve living standards and provide more profits to all countries. Gross Domestic Product (GDP) is the monetary value of all final products and services produced in a year.

First, we need to determine the meaning of economic development or economic growth. A general understanding of economic growth is defined as economic growth. This is the growth of the country's average productivity over the specified period, measured by the country's GDP. GDP is "Investopedia of all finished goods and services produced within the border within a certain period" and is a function of consumption expenditure + government expenditure + investment + net export - import. As pointed out in the preamble, there are more articles on this topic, and it is difficult to compress them all into such pretty narrow pieces. But the core model of these works is that people can discuss and analyze in more detail. In this book, Becker established the theory of human capital.

Human capital is one of the determinants of the literature on economic growth. In most studies investigating the relationship between accumulation of human capital and economic growth, we adopt two approaches, an accounting framework and an endogenous model. The framework of growth accounting suggests that education supports economic growth by increasing individual human capital stock and improving productivity. The endogenous growth model thinks that the creation of innovative ideas is a direct function of human capital, which is expressed in the form of scientific knowledge. Therefore, investment in human capital will promote the growth of physical capital, which in turn will promote economic growth. Accumulation of human capital may promote growth through adoption of catalyst technology. Alternatively, human capital may be necessary for technical use.

Understanding of current economic growth is mainly based on the neoclassical growth model developed by Robert Solow (1956). In the Solow model, capital accumulation is the main factor driving economic growth. The increase in productivity measured by the increase in production per worker is caused by the increase in capital per capita or the accumulation of capital (Fagerberg 1994) The deepening of capital is a state where the economy is stable We will continue until net investment, labor growth rate and capital labor ratio have not changed. The economy is even below steady state and should be faster (see Jones 1998). In steady state, per capita income growth is all due to extrinsic technical change. We assume that the speed of the technical process is constant and not affected by economic incentives

Industrial Development and Economic Growth: Effects on Poverty Reduction and Income Disparity