Summary Since partition, the economic strength of the north and the south have gone into reverse. The economy of the Republic is now four times larger than that of Northern Ireland, with industrial output ten times larger than that of Northern Ireland. In other words, a worker in the Republic is typically paid half as much again as someone working in Northern Ireland.
Different models of economic growth stress alternative causes of economic growth. The principal theories of economic growth include: Endogenous growth theories — Rate of economic growth strongly influenced by human capital and rate of technological innovation.
Keynesian demand-side — Keynes argued that aggregate demand could play a role in influencing economic growth in the short and medium-term. Though most growth theories ignore the role of aggregate demand, some economists argue recessions can cause hysteresis effects and lower long-term economic growth.
Limits to growth — From an environmental perspective, some argue in the very long-term economic growth will be constrained by resource degradation and global warming.
This means that economic growth may come to an end — reminiscent of Malthus theories. Classical model Developed by Adam Smith in Wealth of NationsSmith argued there are several factors which enable increased economic growth Role of markets in determining supply and demand The productivity of labour.
Increasing returns to scale — e. This model assumed technological change was constant and increasing inputs could lead to diminishing returns. Malthus under-predicted the capacity of technological improvements to increase food yields. Therefore, increasing capital has only a temporary and limited impact on increasing the economic growth.
As capital increases, the economy maintains its steady-state rate of economic growth. It states growth rate depends on a function of the savings rate. Some growth theories place a large emphasis on increasing domestic savings. Savings provide the necessary funds to finance investment. It is this investment which creates further growth.
This has been an important factor behind the economic growth in Asia. However, it depends on how efficient the investment is. If savings is too high it leads to lower growth because people cannot afford to consume. New Economic Growth Theories Endogenous growth Endogenous growth models, developed by Paul Romer and Robert Lucas placed greater emphasis on the concept of human capital.
How workers with greater knowledge, education and training can help to increase rates of technological advancement.
They place greater importance on the need for governments to actively encourage technological innovation. They argue in the free market classical view, firms may have no incentive to invest in new technologies because they will struggle to benefit in competitive markets.
The model Places emphasis on increasing both capital and labour productivity. States that increasing labour productivity does not have diminishing returns, but, may have increasing returns They argue that increasing capital does not necessarily lead to diminishing returns as Solow predicts.
They say it is more complicated; it depends on the type of capital investment. Increased importance of spillover benefits from a knowledge-based economy.
Emphasis is placed on free-markets, reducing regulation and subsidies.
The argument is that we need to keep economies open to the forces of change.Chinese economy prior to reform. During the s, China developed a modern industrial sector, which stimulated modest but significant economic growth.
1. Introduction. Tourism is one of the leading growth sectors in international services trade. While many factors influence tourism growth, one of the more perceptible contributions – at least, in the public eye – comes from global events, or mega-events.
But despite all of these Tourism has its Positive and Negative impacts in Economic, Social, and Environmental that will be discuss Due to the size, strength and impact of the tourism industry on local economies worldwide, the debate over the positive and negative effects of tourism is little more than a mental exercise.
The Impact of Poverty on A Child’s Academic Performance Page 2 The Institute for Public Policy & Economic Development (The Institute) is a partnership of ten colleges and universities in the Scranton/Wilkes-Barre/Hazleton. Europe and Caucasus. Europe remains the region with the most international arrivals per year, thanks in part to its rich cultural resources, world-class tourism service infrastructure, strong health and hygiene conditions, and—notably with the Schengen Area—high degree of international openness and integration.
Malaria’s Impact. Malaria occurs mostly in poor tropical and subtropical areas of the world. In many of the countries affected by malaria, it is a leading cause of illness and death.