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A Supply Factor in Economic Growth Would Be: Understanding the Drivers of Production
Author: Dr. Eleanor Vance, PhD in Economics, Professor of Macroeconomics at the University of California, Berkeley. Dr. Vance has published extensively on economic growth, focusing on the role of supply-side factors and their impact on long-term prosperity.
Publisher: Oxford University Press, a leading academic publisher with a strong reputation in economics and related fields.
Editor: Dr. David Chen, PhD in Economics, Senior Editor at Oxford University Press, specializing in macroeconomic theory and policy.
Keywords: supply factor in economic growth, economic growth, supply-side economics, production function, productivity, capital accumulation, human capital, technological progress, infrastructure, resource availability, economic development, long-run economic growth, sustainable growth
Abstract: This article explores the critical role of supply factors in driving economic growth. We will examine various methodologies used to analyze these factors, including production function analysis, growth accounting, and econometric modeling. We’ll delve into key supply-side elements such as capital accumulation, technological progress, human capital development, and resource availability, demonstrating why a supply factor in economic growth would be crucial for sustained prosperity.
1. Introduction: The Importance of Supply in Economic Growth
Economic growth, defined as a sustained increase in a nation's output of goods and services over time, is a complex phenomenon influenced by a multitude of factors. While demand-side factors play a role, understanding the supply side is paramount. A supply factor in economic growth would be the key driver of the economy's potential output – the maximum amount it can produce given its available resources and technology. Without adequate supply, even robust demand cannot lead to sustained growth. This article focuses precisely on identifying and analyzing these vital supply factors.
2. Methodologies for Analyzing Supply-Side Factors
Several methodologies are employed to analyze the contribution of supply factors to economic growth:
Production Function Analysis: This approach models the relationship between output (GDP) and inputs like labor, capital, and technology. The Cobb-Douglas production function is a commonly used framework, allowing economists to quantify the contribution of each input to overall output growth. A supply factor in economic growth would be reflected as an increase in the productivity of these inputs or an increase in the quantity of these inputs.
Growth Accounting: This technique decomposes economic growth into contributions from different sources, including capital accumulation, labor force growth, and total factor productivity (TFP). TFP captures the effects of technological progress and improvements in efficiency not directly attributable to changes in capital or labor. A significant increase in TFP signifies a potent supply factor in economic growth.
Econometric Modeling: More sophisticated econometric models, often employing panel data analysis or vector autoregression (VAR), can examine the relationships between various supply-side factors and economic growth across countries or over time. These models can control for other factors influencing growth, providing more accurate estimations of the individual contribution of a supply factor in economic growth.
3. Key Supply Factors in Economic Growth
Several factors contribute to the supply side of the economy, impacting its potential for growth. A supply factor in economic growth would typically fall under one of these categories:
Capital Accumulation: Investment in physical capital (machinery, equipment, infrastructure) is crucial. Greater capital stock enhances productivity and allows for greater output. A supply factor in economic growth would be a significant increase in investment and capital deepening (increase in capital per worker).
Technological Progress: This is arguably the most significant driver of long-run economic growth. Technological advancements increase productivity by improving efficiency, creating new products, and expanding production possibilities. A supply factor in economic growth would involve substantial investments in R&D, fostering innovation and adoption of new technologies.
Human Capital Development: A skilled and educated workforce is essential. Investing in education, training, and healthcare improves labor productivity and allows for the adoption of more advanced technologies. A supply factor in economic growth would include policies promoting education, skills development, and a healthy population.
Resource Availability: Access to natural resources, including land, minerals, and energy, is critical for many economies. However, sustainable resource management is essential to avoid depletion and environmental damage. A supply factor in economic growth, in this context, would involve efficient resource allocation and the development of renewable energy sources.
Infrastructure Development: Efficient infrastructure, including transportation networks, communication systems, and energy grids, is crucial for facilitating production and distribution. Improved infrastructure reduces transaction costs and increases productivity. A substantial investment in infrastructure represents a powerful supply factor in economic growth.
4. Policy Implications: Fostering Supply-Side Growth
Understanding the role of a supply factor in economic growth has significant policy implications. Governments can implement policies to promote supply-side growth by:
Encouraging Investment: Tax incentives for businesses, deregulation, and macroeconomic stability can boost private investment in physical capital.
Promoting Innovation: Government funding for research and development, intellectual property protection, and fostering a competitive business environment can spur technological progress.
Investing in Human Capital: Increased spending on education and training, along with initiatives to improve health outcomes, enhance human capital.
Sustainable Resource Management: Policies promoting efficient resource use, environmental protection, and development of renewable energy sources are essential for long-term sustainable growth.
Improving Infrastructure: Public investment in infrastructure projects can significantly enhance productivity and reduce transaction costs, stimulating economic activity.
5. Conclusion
A supply factor in economic growth is not merely one element but a combination of factors working in synergy. Understanding and promoting these factors—capital accumulation, technological advancement, human capital development, resource availability, and robust infrastructure—is crucial for achieving sustained economic growth. While demand-side policies have their place, a focus on strengthening the supply side is the key to unlocking an economy's long-run potential for prosperity and improved living standards. Focusing on these aspects is vital for achieving inclusive and sustainable development goals. Neglecting any one of these elements significantly limits the potential for sustained economic progress. Therefore, a comprehensive approach focusing on all key supply factors is essential for driving long-term economic growth.
FAQs:
1. What is the difference between supply-side and demand-side economics? Supply-side economics focuses on increasing the productive capacity of the economy, while demand-side economics focuses on stimulating aggregate demand through government spending or tax cuts.
2. How can we measure the contribution of a specific supply factor to economic growth? Growth accounting and econometric modeling techniques can be used to quantify the contribution of individual supply factors.
3. What are some examples of government policies that promote supply-side growth? Tax incentives for investment, deregulation, education reforms, and infrastructure spending are examples of supply-side policies.
4. Why is technological progress so important for long-run growth? Technological progress drives productivity improvements, leading to greater output with the same or fewer inputs.
5. What role does human capital play in economic growth? A skilled and educated workforce is essential for adopting new technologies and increasing overall productivity.
6. How can sustainable resource management contribute to economic growth? Efficient resource use and the development of renewable energy sources ensure long-term sustainability and avoid resource depletion.
7. What is the impact of infrastructure on economic growth? Efficient infrastructure reduces transaction costs, facilitates trade, and improves productivity.
8. What are some challenges in measuring total factor productivity (TFP)? TFP is difficult to measure accurately because it captures residual growth not explained by changes in capital and labor.
9. How can we ensure that supply-side growth is inclusive and benefits all members of society? Policies should focus on equitable access to education, healthcare, and job opportunities to ensure that the benefits of growth are shared widely.
Related Articles:
1. The Role of Capital Accumulation in Economic Growth: This article explores the relationship between investment in physical capital and economic growth, examining different investment models and their implications.
2. Technological Progress and its Impact on Productivity: This article delves into the mechanisms through which technological advancements improve productivity and contribute to economic growth.
3. Human Capital Development: A Critical Factor in Economic Growth: This article examines the importance of education, skills training, and healthcare in enhancing human capital and driving economic growth.
4. The Impact of Natural Resource Abundance on Economic Growth: This article analyzes the relationship between natural resources and economic growth, considering both the positive and negative effects.
5. Infrastructure Investment and its Contribution to Economic Development: This article explores the role of infrastructure in facilitating economic activity and boosting productivity.
6. The Importance of Institutional Factors in Supply-Side Growth: This article examines how strong institutions and good governance contribute to a favorable environment for supply-side growth.
7. Measuring Total Factor Productivity (TFP) and its Significance: This article explains the methods for measuring TFP and discusses its importance in understanding economic growth.
8. Sustainable Development and Economic Growth: A Balancing Act: This article explores the challenges and opportunities in achieving sustainable economic growth while protecting the environment.
9. The Role of Government Policy in Promoting Supply-Side Growth: This article reviews various government policies aimed at stimulating supply-side growth, including tax policies, deregulation, and investments in education and infrastructure.
| a supply factor in economic growth would be: Long-Run Economic Growth Steven Durlauf, John F. Helliwell, Baldev Raj, 2012-12-06 One of the most enduring questions in economics involves how a nation could accelerate the pace of its economic development. One of the most enduring answers to this question is to promote exports -either because doing so directly influences development via encouraging production of goods for export, or because export promotion permits accumulation of foreign exchange which permits importation of high-quality goods and services, which can in turn be used to expand the nation's production possibilities. In either case, growth is said to be export-led; the latter case is the so-called two-gap hypothesis (McKinnon, 1964; Findlay, 1973). The early work on export-led growth consisted of static cross-country com parisons (Michaely, 1977; Balassa, 1978; Tyler, 1981; Kormendi and Meguire, 1985). These studies generally concluded that there is strong evidence in favour of export-led growth because export growth and income growth are highly correlated. However, Kravis pointed out in 1970 that the question is an essen tially dynamic one: as he put it, are exports the handmaiden or the engine of growth? To make this determination one needs to look at time series to see whether or not exports are driving income. This approach has been taken in a number of papers (Jung and Marshall, 1985; Chow, 1987; Serletis, 1992; Kunst and Marin, 1989; Marin, 1992; Afxentiou and Serletis, 1991), designed to assess whether or not individual countries exhibit statistically significant evidence of export-led growth using Granger causality tests. |
| a supply factor in economic growth would be: A Tea Reader Katrina Avila Munichiello, 2017-03-21 A Tea Reader contains a selection of stories that cover the spectrum of life. This anthology shares the ways that tea has changed lives through personal, intimate stories. Read of deep family moments, conquered heartbreak, and peace found in the face of loss. A Tea Reader includes stories from all types of tea people: people brought up in the tea tradition, those newly discovering it, classic writings from long-ago tea lovers and those making tea a career. Together these tales create a new image of a tea drinker. They show that tea is not simply something you drink, but it also provides quiet moments for making important decisions, a catalyst for conversation, and the energy we sometimes need to operate in our lives. The stories found in A Tea Reader cover the spectrum of life, such as the development of new friendships, beginning new careers, taking dream journeys, and essentially sharing the deep moments of life with friends and families. Whether you are a tea lover or not, here you will discover stories that speak to you and inspire you. Sit down, grab a cup, and read on. |
| a supply factor in economic growth would be: Introduction to Modern Economic Growth Daron Acemoglu, 2008-12-15 From Nobel Prize–winning economist Daron Acemoglu, an incisive introduction to economic growth Introduction to Modern Economic Growth is a groundbreaking text from one of today's leading economists. Daron Acemoglu gives graduate students not only the tools to analyze growth and related macroeconomic problems, but also the broad perspective needed to apply those tools to the big-picture questions of growth and divergence. And he introduces the economic and mathematical foundations of modern growth theory and macroeconomics in a rigorous but easy to follow manner. After covering the necessary background on dynamic general equilibrium and dynamic optimization, the book presents the basic workhorse models of growth and takes students to the frontier areas of growth theory, including models of human capital, endogenous technological change, technology transfer, international trade, economic development, and political economy. The book integrates these theories with data and shows how theoretical approaches can lead to better perspectives on the fundamental causes of economic growth and the wealth of nations. Innovative and authoritative, this book is likely to shape how economic growth is taught and learned for years to come. Introduces all the foundations for understanding economic growth and dynamic macroeconomic analysis Focuses on the big-picture questions of economic growth Provides mathematical foundations Presents dynamic general equilibrium Covers models such as basic Solow, neoclassical growth, and overlapping generations, as well as models of endogenous technology and international linkages Addresses frontier research areas such as international linkages, international trade, political economy, and economic development and structural change An accompanying Student Solutions Manual containing the answers to selected exercises is available (978-0-691-14163-3/$24.95). See: https://press.princeton.edu/titles/8970.html For Professors only: To access a complete solutions manual online, email us at: acemoglusolutions@press.princeton.edu |
| a supply factor in economic growth would be: The plan for growth Great Britain: H.M. Treasury, Great BritainDepartment for Business, Innovation and Skills, 2011-03-25 This supporting document to Budget 2011 (HC 836, ISBN 9780102971033) sets out the Government's plan for sustainable, long-term economic growth for the UK economy. It sets out four ambitions that underpin this objective, these are: to create the most competitive tax system in the G20; to make the UK one of the best places in Europe to start, finance and grow a business; to encourage investment and exports as a route to a more balanced economy and to create a more educated workforce that is the most flexible in Europe. Growth review measures outlined in Chapter 2 cover these priority areas: planning; regulation; trade and inward investment; access to finance; competition; corporate governance; low carbon. The first phase of the review also examined eight sectors of the economy to remove the barriers to growth that affect them: advanced manufacturing; healthcare and life sciences; digital and creative industries; professional and business services; retail; construction; space; tourism. |
| a supply factor in economic growth would be: Economic and fiscal outlook Office for Budget Responsibility, 2010-11-29 The Office for Budget Responsibility was established to provide independent and authoritative analysis of the UK's public finances. Part of this role includes producing the official economic and fiscal forecasts. This report sets out forecasts for the period to 2015-16. The report also assesses whether the Government is on course to meet the medium-term fiscal objectives and presents preliminary observations on the long-run sustainability of the public finances. Since the June forecast, the UK economy has recovered more strongly than initially expected. The GDP growth was greater than expected in both the 2nd and 3rd quarters, but that unemployment levels have risen to levels that the June forecast did not anticipate until the middle of 2012. In general the world economy has also grown more strongly. CPI inflation has remained slightly higher than expected in June, whilst public finances have performed as forecast. The interest rates on UK debt are lower than in June. The OBR forecasts that the economy will continue to recover from the recession, but at a slower pace than the recoveries of the 1970s, 1980s and 1990s. The publication is divided into 5 chapters with two annexes. |
| a supply factor in economic growth would be: Education, Skills, and Technical Change Charles R. Hulten, Valerie A. Ramey, 2019-01-11 Over the past few decades, US business and industry have been transformed by the advances and redundancies produced by the knowledge economy. The workplace has changed, and much of the work differs from that performed by previous generations. Can human capital accumulation in the United States keep pace with the evolving demands placed on it, and how can the workforce of tomorrow acquire the skills and competencies that are most in demand? Education, Skills, and Technical Change explores various facets of these questions and provides an overview of educational attainment in the United States and the channels through which labor force skills and education affect GDP growth. Contributors to this volume focus on a range of educational and training institutions and bring new data to bear on how we understand the role of college and vocational education and the size and nature of the skills gap. This work links a range of research areas—such as growth accounting, skill development, higher education, and immigration—and also examines how well students are being prepared for the current and future world of work. |
| a supply factor in economic growth would be: Economic Growth, second edition Robert J. Barro, Xavier I. Sala-I-Martin, 2003-10-10 The long-awaited second edition of an important textbook on economic growth—a major revision incorporating the most recent work on the subject. This graduate level text on economic growth surveys neoclassical and more recent growth theories, stressing their empirical implications and the relation of theory to data and evidence. The authors have undertaken a major revision for the long-awaited second edition of this widely used text, the first modern textbook devoted to growth theory. The book has been expanded in many areas and incorporates the latest research. After an introductory discussion of economic growth, the book examines neoclassical growth theories, from Solow-Swan in the 1950s and Cass-Koopmans in the 1960s to more recent refinements; this is followed by a discussion of extensions to the model, with expanded treatment in this edition of heterogenity of households. The book then turns to endogenous growth theory, discussing, among other topics, models of endogenous technological progress (with an expanded discussion in this edition of the role of outside competition in the growth process), technological diffusion, and an endogenous determination of labor supply and population. The authors then explain the essentials of growth accounting and apply this framework to endogenous growth models. The final chapters cover empirical analysis of regions and empirical evidence on economic growth for a broad panel of countries from 1960 to 2000. The updated treatment of cross-country growth regressions for this edition uses the new Summers-Heston data set on world income distribution compiled through 2000. |
| a supply factor in economic growth would be: Wage-Led Growth Engelbert Stockhammer, 2013-12-03 This volume seeks to go beyond the microeconomic view of wages as a cost having negative consequences on a given firm, to consider the positive macroeconomic dynamics associated with wages as a major component of aggregate demand. |
| a supply factor in economic growth would be: The Global Trade Slowdown Cristina Constantinescu, Aaditya Mattoo, Michele Ruta, 2015-01-21 This paper focuses on the sluggish growth of world trade relative to income growth in recent years. The analysis uses an empirical strategy based on an error correction model to assess whether the global trade slowdown is structural or cyclical. An estimate of the relationship between trade and income in the past four decades reveals that the long-term trade elasticity rose sharply in the 1990s, but declined significantly in the 2000s even before the global financial crisis. These results suggest that trade is growing slowly not only because of slow growth of Gross Domestic Product (GDP), but also because of a structural change in the trade-GDP relationship in recent years. The available evidence suggests that the explanation may lie in the slowing pace of international vertical specialization rather than increasing protection or the changing composition of trade and GDP. |
| a supply factor in economic growth would be: Measuring Economic Growth and Productivity Barbara Fraumeni, 2019-11-06 Measuring Economic Growth and Productivity: Foundations, KLEMS Production Models, and Extensions presents new insights into the causes, mechanisms and results of growth in national and regional accounts. It demonstrates the versatility and usefulness of the KLEMS databases, which generate internationally comparable industry-level data on outputs, inputs and productivity. By rethinking economic development beyond existing measurements, the book's contributors align the measurement of growth and productivity to contemporary global challenges, addressing the need for measurements as well as the Gross Domestic Product. All contributors in this foundational volume are recognized experts in their fields, all inspired by the path-breaking research of Dale W. Jorgenson. |
| a supply factor in economic growth would be: Economic Policy and the Great Stagflation Alan S. Blinder, 2013-09-11 Economic Policy and the Great Stagflation discusses the national economic policy and economics as a policy-oriented science. This book summarizes what economists do and do not know about the inflation and recession that affected the U.S. economy during the years of the Great Stagflation in the mid-1970s. The topics discussed include the basic concepts of stagflation, turbulent economic history of 1971-1976, anatomy of the great recession and inflation, and legacy of the Great Stagflation. The relation of wage-price controls, fiscal policy, and monetary policy to the Great Stagflation is also elaborated. This publication is beneficial to economists and students researching on the history of the Great Stagflation and policy errors of the 1970s. |
| a supply factor in economic growth would be: Enough Is Enough Rob Dietz, Daniel W. O'Neill, 2013 This powerful book sets out arguments and an agenda of policy proposals for achieving a sustainable and prosperous, but non-growing economy, also known as a steady-state economy. The authors describe a plan for solving the major social and environmental problems which face us today on a finite planet with a rapidly growing population. |
| a supply factor in economic growth would be: General Theory Of Employment , Interest And Money John Maynard Keynes, 2016-04 John Maynard Keynes is the great British economist of the twentieth century whose hugely influential work The General Theory of Employment, Interest and * is undoubtedly the century's most important book on economics--strongly influencing economic theory and practice, particularly with regard to the role of government in stimulating and regulating a nation's economic life. Keynes's work has undergone significant revaluation in recent years, and Keynesian views which have been widely defended for so long are now perceived as at odds with Keynes's own thinking. Recent scholarship and research has demonstrated considerable rivalry and controversy concerning the proper interpretation of Keynes's works, such that recourse to the original text is all the more important. Although considered by a few critics that the sentence structures of the book are quite incomprehensible and almost unbearable to read, the book is an essential reading for all those who desire a basic education in economics. The key to understanding Keynes is the notion that at particular times in the business cycle, an economy can become over-productive (or under-consumptive) and thus, a vicious spiral is begun that results in massive layoffs and cuts in production as businesses attempt to equilibrate aggregate supply and demand. Thus, full employment is only one of many or multiple macro equilibria. If an economy reaches an underemployment equilibrium, something is necessary to boost or stimulate demand to produce full employment. This something could be business investment but because of the logic and individualist nature of investment decisions, it is unlikely to rapidly restore full employment. Keynes logically seizes upon the public budget and government expenditures as the quickest way to restore full employment. Borrowing the * to finance the deficit from private households and businesses is a quick, direct way to restore full employment while at the same time, redirecting or siphoning |
| a supply factor in economic growth would be: The Economic and Fiscal Consequences of Immigration National Academies of Sciences, Engineering, and Medicine, Division of Behavioral and Social Sciences and Education, Committee on National Statistics, Panel on the Economic and Fiscal Consequences of Immigration, 2017-07-13 The Economic and Fiscal Consequences of Immigration finds that the long-term impact of immigration on the wages and employment of native-born workers overall is very small, and that any negative impacts are most likely to be found for prior immigrants or native-born high school dropouts. First-generation immigrants are more costly to governments than are the native-born, but the second generation are among the strongest fiscal and economic contributors in the U.S. This report concludes that immigration has an overall positive impact on long-run economic growth in the U.S. More than 40 million people living in the United States were born in other countries, and almost an equal number have at least one foreign-born parent. Together, the first generation (foreign-born) and second generation (children of the foreign-born) comprise almost one in four Americans. It comes as little surprise, then, that many U.S. residents view immigration as a major policy issue facing the nation. Not only does immigration affect the environment in which everyone lives, learns, and works, but it also interacts with nearly every policy area of concern, from jobs and the economy, education, and health care, to federal, state, and local government budgets. The changing patterns of immigration and the evolving consequences for American society, institutions, and the economy continue to fuel public policy debate that plays out at the national, state, and local levels. The Economic and Fiscal Consequences of Immigration assesses the impact of dynamic immigration processes on economic and fiscal outcomes for the United States, a major destination of world population movements. This report will be a fundamental resource for policy makers and law makers at the federal, state, and local levels but extends to the general public, nongovernmental organizations, the business community, educational institutions, and the research community. |
| a supply factor in economic growth would be: Spanish Economic Growth, 1850–2015 Leandro Prados de la Escosura, 2017-09-04 This book is open access under a CC BY 4.0 license. This text offers a comprehensive and nuanced view of the economic development of Spain since 1850. It provides a new set of historical GDP estimates for Spain from the demand and supply sides, and presents a reconstruction of production and expenditure series for the century prior to the introduction of modern national accounts. The author splices available national accounts sets over the period 1958–2015 through interpolation, as an alternative to conventional retropolation. The resulting national accounts series are linked to the historical estimates providing yearly series for GDP and its components since 1850. On the basis of new population estimates, the author derives GDP per head, decomposed into labour productivity and the amount of work per person, and placed into international perspective. With theoretical reasoning and historiographical implications, Prados de la Escosura provides a useful methodological reference work for anyone interested in national accounting. Open Access has been made possible thanks to Fundación Rafael del Pino's generous support. You can find the full dataset here: http://espacioinvestiga.org/bbdd-chne/?lang=en ‘This book stands among the classics for the Kuznetian paradigm in empirical economics. This is the definitive study of Spain's transition to a modern economy.’ —Patrick Karl O'Brien, Emeritus Fellow at St. Antony’s College, the University of Oxford, UK, and Professor Emeritus of Global Economic History at the London School of Economics and Political Science, UK ‘The definitive account of Spanish economic growth since 1850, based firmly on a magisterial reconstruction of that country’s national accounts and an unrivalled knowledge of both Spanish and global economic history of the period.’ —Stephen Broadberry, Professor of Economic History at Nuffield College, the University of Oxford, UK |
| a supply factor in economic growth would be: Long-Term Factors in American Economic Growth Stanley L. Engerman, Robert E. Gallman, 1986-12-01 These classic studies of the history of economic change in 19th- and 20th-century United States, Canada, and British West Indies examine national product; capital stock and wealth; and fertility, health, and mortality. A 'must have' in the library of the serious economic historian.—Samuel Bostaph, Southern Economic Journal |
| a supply factor in economic growth would be: Fiscal Policy and Long-Term Growth International Monetary Fund, 2015-04-20 This paper explores how fiscal policy can affect medium- to long-term growth. It identifies the main channels through which fiscal policy can influence growth and distills practical lessons for policymakers. The particular mix of policy measures, however, will depend on country-specific conditions, capacities, and preferences. The paper draws on the Fund’s extensive technical assistance on fiscal reforms as well as several analytical studies, including a novel approach for country studies, a statistical analysis of growth accelerations following fiscal reforms, and simulations of an endogenous growth model. |
| a supply factor in economic growth would be: New Developments in Productivity Analysis Charles R. Hulten, Edwin R. Dean, Michael Harper, 2007-11-01 The productivity slowdown of the 1970s and 1980s and the resumption of productivity growth in the 1990s have provoked controversy among policymakers and researchers. Economists have been forced to reexamine fundamental questions of measurement technique. Some researchers argue that econometric approaches to productivity measurement usefully address shortcomings of the dominant index number techniques while others maintain that current productivity statistics underreport damage to the environment. In this book, the contributors propose innovative approaches to these issues. The result is a state-of-the-art exposition of contemporary productivity analysis. Charles R. Hulten is professor of economics at the University of Maryland. He has been a senior research associate at the Urban Institute and is chair of the Conference on Research in Income and Wealth of the National Bureau of Economic Research. Michael Harper is chief of the Division of Productivity Research at the Bureau of Labor Statistics. Edwin R. Dean, formerly associate commissioner for Productivity and Technology at the Bureau of Labor Statistics, is adjunct professor of economics at The George Washington University. |
| a supply factor in economic growth would be: Beyond Economic Growth Tatyana P. Soubbotina, Katherine Sheram, 2000-01-01 The book, which draws on data published by the World Bank, is addressed to teachers, students, and all those interested in exploring issues of global development. |
| a supply factor in economic growth would be: Determinants of Economic Growth Robert J. Barro, 1997 Summarizes recent research from hundreds of empirical studies on economic growth across countries that have highlighted the correlation between growth and a variety of variables. |
| a supply factor in economic growth would be: Poverty in the Philippines Asian Development Bank, 2009-12-01 Against the backdrop of the global financial crisis and rising food, fuel, and commodity prices, addressing poverty and inequality in the Philippines remains a challenge. The proportion of households living below the official poverty line has declined slowly and unevenly in the past four decades, and poverty reduction has been much slower than in neighboring countries such as the People's Republic of China, Indonesia, Thailand, and Viet Nam. Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts. This publication analyzes the causes of poverty and recommends ways to accelerate poverty reduction and achieve more inclusive growth. it also provides an overview of current government responses, strategies, and achievements in the fight against poverty and identifies and prioritizes future needs and interventions. The analysis is based on current literature and the latest available data, including the 2006 Family Income and Expenditure Survey. |
| a supply factor in economic growth would be: Replacing GDP by 2030 Rutger Hoekstra, 2019-05-30 Proposes an new strategy for the beyond-GDP community which aims to replace the economic paradigm centred on Gross Domestic Product (GDP) by 2030. |
| a supply factor in economic growth would be: Puzzles of Economic Growth Leszek Balcerowicz, Andrzej Rzo?ca, 2014-12-03 By comparing countries like Venezuela and Chile, China and India, Dominican Republic and Haiti, and others, the book tries to answer the questions of which institutions and policies are crucial for stable long term economic growth. |
| a supply factor in economic growth would be: Finance & Development, September 2014 International Monetary Fund. External Relations Dept., 2014-08-25 This chapter discusses various past and future aspects of the global economy. There has been a huge transformation of the global economy in the last several years. Articles on the future of energy in the global economy by Jeffrey Ball and on measuring inequality by Jonathan Ostry and Andrew Berg are also illustrated. Since the 2008 global crisis, global economists must change the way they look at the world. |
| a supply factor in economic growth would be: Global Productivity Alistair Dieppe, 2021-06-09 The COVID-19 pandemic struck the global economy after a decade that featured a broad-based slowdown in productivity growth. Global Productivity: Trends, Drivers, and Policies presents the first comprehensive analysis of the evolution and drivers of productivity growth, examines the effects of COVID-19 on productivity, and discusses a wide range of policies needed to rekindle productivity growth. The book also provides a far-reaching data set of multiple measures of productivity for up to 164 advanced economies and emerging market and developing economies, and it introduces a new sectoral database of productivity. The World Bank has created an extraordinary book on productivity, covering a large group of countries and using a wide variety of data sources. There is an emphasis on emerging and developing economies, whereas the prior literature has concentrated on developed economies. The book seeks to understand growth patterns and quantify the role of (among other things) the reallocation of factors, technological change, and the impact of natural disasters, including the COVID-19 pandemic. This book is must-reading for specialists in emerging economies but also provides deep insights for anyone interested in economic growth and productivity. Martin Neil Baily Senior Fellow, The Brookings Institution Former Chair, U.S. President’s Council of Economic Advisers This is an important book at a critical time. As the book notes, global productivity growth had already been slowing prior to the COVID-19 pandemic and collapses with the pandemic. If we want an effective recovery, we have to understand what was driving these long-run trends. The book presents a novel global approach to examining the levels, growth rates, and drivers of productivity growth. For anyone wanting to understand or influence productivity growth, this is an essential read. Nicholas Bloom William D. Eberle Professor of Economics, Stanford University The COVID-19 pandemic hit a global economy that was already struggling with an adverse pre-existing condition—slow productivity growth. This extraordinarily valuable and timely book brings considerable new evidence that shows the broad-based, long-standing nature of the slowdown. It is comprehensive, with an exceptional focus on emerging market and developing economies. Importantly, it shows how severe disasters (of which COVID-19 is just the latest) typically harm productivity. There are no silver bullets, but the book suggests sensible strategies to improve growth prospects. John Fernald Schroders Chaired Professor of European Competitiveness and Reform and Professor of Economics, INSEAD |
| a supply factor in economic growth would be: The Great Inflation Michael D. Bordo, Athanasios Orphanides, 2013-06-28 Controlling inflation is among the most important objectives of economic policy. By maintaining price stability, policy makers are able to reduce uncertainty, improve price-monitoring mechanisms, and facilitate more efficient planning and allocation of resources, thereby raising productivity. This volume focuses on understanding the causes of the Great Inflation of the 1970s and ’80s, which saw rising inflation in many nations, and which propelled interest rates across the developing world into the double digits. In the decades since, the immediate cause of the period’s rise in inflation has been the subject of considerable debate. Among the areas of contention are the role of monetary policy in driving inflation and the implications this had both for policy design and for evaluating the performance of those who set the policy. Here, contributors map monetary policy from the 1960s to the present, shedding light on the ways in which the lessons of the Great Inflation were absorbed and applied to today’s global and increasingly complex economic environment. |
| a supply factor in economic growth would be: The Limits to Growth Donella H. Meadows, 1972 Examines the factors which limit human economic and population growth and outlines the steps necessary for achieving a balance between population and production. Bibliogs |
| a supply factor in economic growth would be: Introduction to Business Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt, 2024-09-16 Introduction to Business covers the scope and sequence of most introductory business courses. The book provides detailed explanations in the context of core themes such as customer satisfaction, ethics, entrepreneurship, global business, and managing change. Introduction to Business includes hundreds of current business examples from a range of industries and geographic locations, which feature a variety of individuals. The outcome is a balanced approach to the theory and application of business concepts, with attention to the knowledge and skills necessary for student success in this course and beyond. This is an adaptation of Introduction to Business by OpenStax. You can access the textbook as pdf for free at openstax.org. Minor editorial changes were made to ensure a better ebook reading experience. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution 4.0 International License. |
| a supply factor in economic growth would be: General Purpose Technologies and Economic Growth Elhanan Helpman, 1998 Traditionally, economists have considered the accumulation of conventional inputs such as labour and capital to be the primary force behind economic growth. In the late-1990s however, many economists place technological progress at the centre of the growth process. This shift is due to theoretical developments that allow researchers to link microeconomic outcomes. |
| a supply factor in economic growth would be: The Fourth Industrial Revolution Klaus Schwab, 2017-01-03 The founder and executive chairman of the World Economic Forum on how the impending technological revolution will change our lives We are on the brink of the Fourth Industrial Revolution. And this one will be unlike any other in human history. Characterized by new technologies fusing the physical, digital and biological worlds, the Fourth Industrial Revolution will impact all disciplines, economies and industries - and it will do so at an unprecedented rate. World Economic Forum data predicts that by 2025 we will see: commercial use of nanomaterials 200 times stronger than steel and a million times thinner than human hair; the first transplant of a 3D-printed liver; 10% of all cars on US roads being driverless; and much more besides. In The Fourth Industrial Revolution, Schwab outlines the key technologies driving this revolution, discusses the major impacts on governments, businesses, civil society and individuals, and offers bold ideas for what can be done to shape a better future for all. |
| a supply factor in economic growth would be: Poor Numbers Morten Jerven, 2013-02-01 One of the most urgent challenges in African economic development is to devise a strategy for improving statistical capacity. Reliable statistics, including estimates of economic growth rates and per-capita income, are basic to the operation of governments in developing countries and vital to nongovernmental organizations and other entities that provide financial aid to them. Rich countries and international financial institutions such as the World Bank allocate their development resources on the basis of such data. The paucity of accurate statistics is not merely a technical problem; it has a massive impact on the welfare of citizens in developing countries. Where do these statistics originate? How accurate are they? Poor Numbers is the first analysis of the production and use of African economic development statistics. Morten Jerven's research shows how the statistical capacities of sub-Saharan African economies have fallen into disarray. The numbers substantially misstate the actual state of affairs. As a result, scarce resources are misapplied. Development policy does not deliver the benefits expected. Policymakers' attempts to improve the lot of the citizenry are frustrated. Donors have no accurate sense of the impact of the aid they supply. Jerven's findings from sub-Saharan Africa have far-reaching implications for aid and development policy. As Jerven notes, the current catchphrase in the development community is evidence-based policy, and scholars are applying increasingly sophisticated econometric methods-but no statistical techniques can substitute for partial and unreliable data. |
| a supply factor in economic growth would be: Global Economic Prospects 2007 World Bank, 2006 Over the next 25 years developing countries will move to center stage in the global economy. Global Economic Prospects 2007 analyzes the opportunities - and stresses - this will create. While rich and poor countries alike stand to benefit, the integration process will make more acute stresses already apparent today - in income inequality, in labor markets, and in the environment. Over the next 25 years, rapid technological progress, burgeoning trade in goods and services, and integration of financial markets create the opportunity for faster long-term growth. However, some regions, notably Africa, are at risk of being left behind. The coming globalization will also see intensified stresses on the global commons. Addressing global warming, preserving marine fisheries, and containing infectious diseases will require effective multilateral collaboration to ensure that economic growth and poverty reduction proceed without causing irreparable harm to future generations. |
| a supply factor in economic growth would be: Can Economic Growth Be Sustained? Keijiro Otsuka, C. Ford Runge, 2011-07-25 This collection of essays by Ruttan and Hayami spans their long career in the economics of technical and institutional change. At both a theoretical and empirical level, their analysis of induced innovation provides a solid foundation for understanding how and why technologies and institutions evolve in response to factors that constrain them. Can Economic Growth Be Sustained? provides a sweeping explanation of this process. As scholars, Ruttan and Hayami's abilities and experiences complemented each other. Together, they had great success in working across contexts to integrate Western models of technological change and more holistic Asian perspectives on multi-factorial interaction. Their perspectives are wide ranging, covering large geographical areas and thoroughly examining the historical development of agriculture in the United States, Japan, and many other countries. This volume collects their most influential papers, from which much can be learned. |
| a supply factor in economic growth would be: Global Economic Prospects, June 2021 World Bank, 2021-08-03 The world economy is experiencing a very strong but uneven recovery, with many emerging market and developing economies facing obstacles to vaccination. The global outlook remains uncertain, with major risks around the path of the pandemic and the possibility of financial stress amid large debt loads. Policy makers face a difficult balancing act as they seek to nurture the recovery while safeguarding price stability and fiscal sustainability. A comprehensive set of policies will be required to promote a strong recovery that mitigates inequality and enhances environmental sustainability, ultimately putting economies on a path of green, resilient, and inclusive development. Prominent among the necessary policies are efforts to lower trade costs so that trade can once again become a robust engine of growth. This year marks the 30th anniversary of the Global Economic Prospects. The Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies. |
| a supply factor in economic growth would be: The Theory of Economic Growth W. Arthur Lewis, 1970 |
| a supply factor in economic growth would be: Economic Growth and Environmental Sustainability Paul Ekins, 2002-01-04 A key area of public policy in the last twenty years is the question of how, and how much, to protect vthe environment. At the heart of this has been the heated debate over the nature of the relationship between economic growth and environmental sustainability. Is environemental sustainability economic growth or `green growth', a contradiction in terms? Avoiding the confusion that often surrounds these issues, Ekins provides rigorous expositions of the concept of sustainability, integrated environmental and economic accounting, the Environmental Kuznets Curve, the economics of climate change and environmental taxation. Individual chapters are organised as self-contained, state-of-the-art expositions of the core issues of environmental economics, with extensive cross-referencing from one chapter to another, in order to guide the student or policy-maker through these complex problems. Paul Ekins breaks new ground in defining the conditions of compatibility between economic growth and environmental sustainability, and provides measures and criteria by which the environmental sustainability of economic growth, as it occurs in the real world, may be judged. It is argued that `green growth' is not only theoretically possible but economically achievable and the authors show what environmental and economic policies are required to achieve this. Economic Growth and Environmental Sustainability will be welcolmed by students of and researchers in environmental economics and environmental studies, as well as all interested policy-makers. |
| a supply factor in economic growth would be: The Sources of Economic Growth in OECD Countries OECD, 2003-02-25 This publication examines the causes of the divergence in growth across the OECD. |
| a supply factor in economic growth would be: Essential Economics Matthew Bishop, 2004-05-01 |
| a supply factor in economic growth would be: Credit Supply and Productivity Growth Francesco Manaresi, Mr.Nicola Pierri, 2019-05-17 We study the impact of bank credit on firm productivity. We exploit a matched firm-bank database covering all the credit relationships of Italian corporations, together with a natural experiment, to measure idiosyncratic supply-side shocks to credit availability and to estimate a production model augmented with financial frictions. We find that a contraction in credit supply causes a reduction of firm TFP growth and also harms IT-adoption, innovation, exporting, and adoption of superior management practices, while a credit expansion has limited impact. Quantitatively, the credit contraction between 2007 and 2009 accounts for about a quarter of observed the decline in TFP. |
| a supply factor in economic growth would be: An Inquiry Into the Nature and Causes of the Wealth of Nations Adam Smith, 1822 |
Demand and supply as factors determining economic growth
The development of a number of economic variables in the course of time is determined by the intrinsic dynamics of the system, as represented by the fundamental relations between flows …
ECONOMICS (20TH EDITION), McConnell, Brue, and Flynn
Identify four supply factors that are determinants of economic growth. Explain the demand factor as a determinant of economic growth. Describe the efficiency factor as a determinant of …
The main determinants affecting economic growth - Yola
Economic growth theories and models highlight the different ways in which the present economic activity can have an influence on future economic developments and can also identify sources …
Economic Growth: Types and Factors - avekon
The article deals with the content of economic growth as an economic category through determining its type, indicators and factors. It proposed grading factors based on the various …
Introduction to Modern Economic Growth - The IGC
Introduction to Modern Economic Growth ics in macroeconomics, but provides a thorough and rigorous introduction 7 provide a quick but relatively rigorous introduction to dynamic optimization.
14.452 Economic Growth: Lecture 13, Directed Technological …
Standard explanation: skill bias technical change, and an acceleration that coincided with the changes in the relative supply of skills. Important question: skill bias is endogenous, so, why …
Modeling and analysis of demand-supply dynamics with a …
Abstract: In this paper, to investigate the dynamic interplay between supply and demand, with a focus on collectability, a novel mathematical model was introduced via conformable operator.
Government Expenditures and Economic Growth: The Supply …
GDP is equal to the sum of its effect on the growth rate of total factor productivity and its overall effect on the investment ratio weighted by the marginal product of capital.
Money Supply, Inflation and Economic Growth in Nigeria
The study empirically investigated money supply, inflation and economic growth in Nigeria. The specific objectives were to; determine the effect of broad money supply, inflation, interest rate, …
09. Economic Growth - .NET Framework
10 Countries that have experienced modern economic growth have also tended to A adopt feudalistic institutions. B restrict women and minorities from holding certain economic and …
BIS Working Papers
In the public debate, there is so far no consensus on the relative importance of supply and demand factors in the rise in inflation.
Economics Standard level Paper 1 - dl.ibdocs.re
(b) Evaluate the view that increased investment is the most important factor in achieving a faster rate of economic growth. [15]
THE DYNAMICS OF SUPPLY AND ECONOMIC GROWTH
How can such strong beliefs in exogenous economic growth originate and persist to the extent that its explanation has been neglected in core economic theory?
Growth Drivers in Kenya – A Supply Side Analysis
We empirically assess the drivers of output growth in Kenya using a Cobb-Douglas production function within a growth accounting framework. Our results show, contrary to earlier studies …
14.452 Economic Growth: Lectures 2 and 3 The Solow Growth …
Harrod-Domar mdel emphasized potential dysfunctional aspects of growth: e.g, how growth could go hand-in-hand with increasing unemployment. Solow model demonstrated why the Harrod …
Supply and Demand: The Fundamental Forces of Economics
Factors that affect the supply of a product include production costs, technological advancements, government policies, natural disasters, and changes in input prices. For instance, if the cost of …
Economic Growth and Labour Supply - JSTOR
Growth of the economy takes place under the condition of an elastic supply of labour. We can call this phase of economic growth 'Phase 1'.
TOURISM INVESTMENT , SUPPLY AND DEMAND IN …
Tourism is one of the most significant contributors to the Indonesia growth of economy, based on data from the Indonesia Central Bureau of Statistics in 2012, the share of national tourism to …
Sources of economic growth - GOV.UK
GDP Growth can be measured in terms of demand (total expenditure on goods and services), or supply (total goods and services produced). The growth in demand can outstrip supply for a …
Demand and supply as factors determining econo…
The development of a number of economic variables in the course of time is determined by the intrinsic …
The Facts of Economic Growth - Stanford University
Questions such as these define the field of economic growth. This paper documents the facts that underlie …
ECONOMICS (20TH EDITION), McConnell, Brue, and Flynn
Identify four supply factors that are determinants of economic growth. Explain the demand factor as a …
The main determinants affecting economic growt…
Economic growth theories and models highlight the different ways in which the present economic activity can …
Economic Growth: Types and Factors - avekon
The article deals with the content of economic growth as an economic category through determining its …
