Governments analyze national economies {macroeconomics}|.
economic growth
For economic growth, developed nations need to keep interest rates high to encourage investment. They need high capital returns to pay high interest.
Developing nations have surplus labor and high underemployment. To grow as a transition economy, they need low population growth, increased capital, increased savings, and stable wages. They mix rural subsistence economies and urban money economies, with political conflicts. They have poor markets and poor distribution systems. They export only resources and unfinished goods. They need imports but have no cash to pay for them. They have low taxes, few schools, small wealthy class, no middle class, low investment rate, untrained business class, and poor agricultural techniques. They need capital goods and investment to change these problems.
economic growth: rate
If factor pricing is competitive and costs per factor unit are constant, output growth rate is sum of technology, labor, capital, and resource increase rates, each weighted by GNP percentage. Output per worker can increase through education, skill learning, management techniques, total economic organization, economies of scale, and inventions.
Social Sciences>Economics>Macroeconomics
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Date Modified: 2022.0224