Growth III-Tech

Growth III-Tech - E.g., South Korea, Singapore, Taiwan...

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PRINCIPLES OF MACROECONOMICS Technology
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Technological Progress and Productivity Growth $120,000 90,000 60,000 30,000 0 Real GDP per worker (2000 dollars) $20,000 50,000 80,000 100,000 Physical capital per worker (2000 dollars) Rising total factor productivity shifts curve up
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Technology Policy Policy to encourage research and innovation - increased funding for R&D, tax credits for research
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4 • Economic stability, efficiency, and healthy growth require: – law enforcement – effective courts, – a stable constitution, and – honest government officials. Property Rights & Political Stability
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5 • Countries with inward-oriented policies have generally failed to create growth. E.g., Argentina during the 20th century. • Countries with outward-oriented policies have often succeeded.
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Unformatted text preview: E.g., South Korea, Singapore, Taiwan after 1960. Free Trade To increase the amount of capital per worker available in the economy, investment in capital must grow faster than the growth rate of the population. High population growth rates can slow down the increase in capital per worker. Population Growth Summary A number of factors influence differences among countries in their long run growth rates. These are government policies and institutions that alter: savings and investment spending. foreign investment. education. research and development. political stability. the protection of property rights. free trade Is World Growth Sustainable? Differing views about the impact of response to alleged climate change...
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Growth III-Tech - E.g., South Korea, Singapore, Taiwan...

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