economic growth is the change of the results of the functioning of economics. Economic growth is divided into intensive and extensive according to the methods and principles of the development. The extensive economic growth is observed when the process of production involves more and more resources for the improvement of its rates, while the intensive growth is the involvement of the latest achievements and discoveries in science and technology and improvement the new forms of the organization of the production. The macroeconomic factors which influence the economic growth are factors of supply, demand and distribution. The factors of supply are: the quantity of and quality of natural resources, the quality and quantity of the labor force and the quantity of the main capital. These factors influence the economic development, because the quality of the labor force and the available resources and capital are able to make the process of production intensive due to the hard work of the employees and their top qualification which can influence the results of the work and increase the success of the company. The factors of demand are very important for the gradual economic growth, because if no one requires the chosen production or if no one is able to spend money on it, the production will be useless and the growth will not occur.

The problem of economic growth is quite important for understanding but at the same time the factors important for it are quite easy. The only thing which is essential for the intensive and rapid economic growth is the cooperation of all the factors simultaneously. Economic growth is the natural process which occurs in economics and it is associated with the reduction of the rates of unemployment, the increase of the income and quality of life.

The student is able to prepare a quality research proposal which would observe the issue on economic growth from the alternative and personal point of view. The young professional should present his own vision of the problem and suggest the new research approach and choose the core questions for the research. The student is expected to use the adequate methodology and choose the most useful sources to collect information about the economic growth and its types. The student is able to learn to construct his research proposal in the right way if he takes advantage of the internet help and looks through a free example research proposal on inflation and economic growth analyzed by an expert. The student has the chance to understand the manner of standards of writing following the quality advice of a free sample research proposal on local economic development suggested for the student’s advantage in the web. at essaylib.com writing service you can order a custom research proposal on economic growth topics.

Do People Drop Out High School Essay

We hire top rated phd and masters writers only to provide students with professional research proposal help at affordable rates. Just visit our website and fill in the order form with all proposal details: enjoy our professional research proposal writing service! nber working paper no. 19895 issued in february 2014 the united states achieved a 2.0 percent average annual growth rate of real gdp per capita between 1891 and 2007. This paper predicts that growth in the 25 to 40 years after 2007 will be much slower, particularly for the great majority of the population. Future growth will be 1.3 percent per annum for labor productivity in the total economy, 0.9 percent for output per capita, 0.4 percent for real income per capita of the bottom 99 percent of the income distribution, and 0.2 percent for the real disposable income of that group. The primary cause of this growth slowdown is a set of four headwinds, all of them widely recognized and uncontroversial.

Demographic shifts will reduce hours worked per capita, due not just to the retirement of the baby boom generation but also as a result of an exit from the labor force both of youth and prime age adults. Educational attainment, a central driver of growth over the past century, stagnates at a plateau as the u.s. Sinks lower in the world league tables of high school and college completion rates. Inequality continues to increase, resulting in real income growth for the bottom 99 percent of the income distribution that is fully half a point per year below the average growth of all incomes.

A projected long term increase in the ratio of debt to gdp at all levels of government will inevitably lead to more rapid growth in tax revenues and/or slower growth in transfer payments at some point within the next several decades. There is no need to forecast any slowdown in the pace of future innovation for this gloomy forecast to come true, because that slowdown already occurred four decades ago. In the eight decades before 1972 labor productivity grew at an average rate 0.8 percent per year faster than in the four decades since 1972.

While no forecast of a future slowdown of innovation is needed, skepticism is offered here, particularly about the techno optimists who currently believe that we are at a point of inflection leading to faster technological change. The paper offers several historical examples showing that the future of technology can be forecast 50 or even 100 years in advance and assesses widely discussed innovations anticipated to occur over the next few decades, including medical research, small robots, 3 d printing, big data, driverless vehicles, and oil gas fracking. The attempt to search for a common set of general stages in the historical development of nations and their economies goes back to adam smith, who defined four stages of societal organization: the original stage of hunters, a second stage of shepherds or nomadic agriculture, a third stage of feudal farming agriculture, and a fourth and final stage of commercial society. The most commonly accepted set of stages are those postulated by walt whitman rostow, who in the stages of economic growth 1960 proposed the stages as a general model of economic change.

Rostow's model assumes that it is possible that all societies during their development appear in one of five stages of economic development: the traditional society, the preconditions for takeoff, the takeoff, the drive to maturity, and the age of high mass consumption. While this discussion will only consider the economic dimension of the stages, rostow also outlined non economic social, political, cultural, and psychological factors. However, in the classification of particular countries' development, he emphasized the economic factors. Definitions of rostow's stages the first stage, the traditional economy, is characterized only by basic industries: agriculture and mining. The economy is unproductive, society is based on pre newtonian science and technology, and the labor force is unskilled. The second stage of growth, the preconditions for takeoff, finds economies in the process of transition, as the traditional society starts to exploit the results of modern science. While the society can still mainly be characterized by traditional low productivity, there are already productivity improvements in agriculture and extractive industries that create savings that can be invested in infrastructure.

During the third stage, the takeoff stage, the rates of productive investment and saving rise further and new industries grow rapidly, using new techniques of production. The process of industrialization is driven by the leading sectors of industry, such as railroads and steel, and stimulates the growth of other industries. The fast growth of productivity in agriculture is an important condition for successful takeoff.

The economy and its social and political structure are transformed so that the growth can be sustained. After the takeoff stage, as new and more advanced industries develop and modern technology is applied to all industries, the economy enters the fourth stage, the drive to maturity. The fifth and final stage of growth is that of high mass consumption, when all the leading sectors move toward durable consumer goods and services and the service sector experiences rapid growth. The most developed countries, like the united states, are now considered to be in this stage. Rostow tried to establish a general theory of development, based on a dynamic neoclassical theory of production. He did not, however, provide a formal model of the stages, but only a set of narrative descriptions, so that the result was less a theory than a language supple 1984, p.

Rostow linked theoretical constructs like production functions, capital output ratios, propensities to invest and to consume to the dynamics and narrative of historical change, and acknowledged the vital significance of sociopolitical attitudes, groupings, and discontinuities supple 1984, p. Rostow presented and described empirical and historical evidence for the most advanced countries, especially great britain, to support the view that the modern development of these countries had gone through the same stages. This work gave impetus to more careful, longer term empirical research that ultimately failed to support rostow's conclusions for example, it failed to identify a takeoff in the economic history of countries such as france crafts 2001, p. Aside from these theoretical criticisms, there were more general criticisms that may also be applied to current day economic theories of growth and development. Mason 1982 , principal flaws include an overemphasis on discontinuity in historical processes, the teleological character of the conception of development, and problematic generalizations of political processes. De oliveira campos 1982 criticizes the presumption of the universality of economic motivations and of the inevitability of growth, without any space for economic decline and reversals. Arthur lewis 1982 , what is missing is the crucial role of institutions for douglass c.

Despite all these criticisms, rostow's stages of growth undoubtedly contributed to or at least were consonant with the early thinking about economic development as a process, and concepts such as the takeoff or leading sectors have been accepted by the profession. Stages of endogenous growth rostow's stages of growth have stimulated recent attempts in the field of growth theory to construct more general formal models able to capture the behavior of developed and less developed economies. One of the first such models was developed by costas azariadis and allan drazen 1990 , who used the endogenous growth model with human capital as an engine of growth, an approach first suggested by robert lucas 1988 , but amended it by adding threshold externalities in the human capital sector. Such a model exhibited two steady states: the regime of the zero growth, underdevelopment trap, and the regime of sustained growth. When the underdeveloped economy manages to accumulate a critical amount of human capital, it reaches an area of increasing returns stimulating even more investment in human capital, and the economy takes off into sustained growth. By explicitly modeling knowledge diffusion, fabrizio zilibotti 2005 in the ak model and michal kejak 2003 in lucas's model construct a model able to exhibit different stages of growth.

Leaving Cert Economics Paper 2013

Mentioned here are only a handful of the numerous growth models with multiple steady states, as many of the others are not linked to rostow's stages of growth. Unified theory of growth and development growth theory literature on models with multiple steady states laid the grounds for the establishment of a unified theory of growth and development that aims to capture in a single unified framework the era of malthusian stagnation, the modern stage of sustained growth, and the transition between these two regimes industrial revolution. Lucas 2002 offers such a model of the industrial revolution, in which human capital serves as an engine of sustained growth. An important part of this model's mechanics is a beckerian trade off between the quantity and quality of the children responsible for demographic transition. A similar model with non homothetic preferences is presented by oded galor and david n. An alternative model of the industrial revolution in which new ideas are seen as an engine of growth can be found in the work of charles i.