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However, the index is limited in that it ignores the relationship of the attributes that are used to construct it. As such, two countries can have the same HDI but have different levels of education standards or health care. In order to eliminate the limitations of the HDI and traditional models that are used to measure human development, the article proposes a new model. The model is constructed based on stochastic dominance.
The stochastic model used compares different variables according to the preferences of rational economic decision makers and ordering them in a stochastic manner. The model has not been used because it can only be tested pair-wise. The article contends that the stochastic model weights are explicit which leads to the creation of the scenario that represents the most optimistic development. The model gives more weight to the dimension that is realized much higher in the countries than other dimensions. The article uses the HDI index as a benchmark and uses the stochastic dominance model to get weights that are assigned to the sub-indices. The article asserts that this move helps to maximize the distribution distance which occurs between the used indices. As such, the article uses stochastic dominance to measure the factor that has the major contribution to the development using the HDI index.
The article uses the biased literature review which reveals the weakness of the traditional methods of measuring development. GNP and GDP are cited as the main traditional methods of measuring development. The articles espouses that GDP and GNP per capita uses the income to analyses development while there are other factors that cannot be owned or produce by individuals that lead to the development. HDI was development to remedy these shortcomings, however, HDI is criticised in using poor source of data to construct its constituents. There is also a lack of conserves
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Economic growth is one of the major macroeconomic objectives. Economic growth is regarded as a necessary and desirable feature of modern economies . Economic growth is widely defined as ‘the sustained increase in real per capita incomes’ .
To create value, unmet needs and opportunities are identified and ways to meet these needs are developed. There is a strong link between entrepreneurship, innovation, and economic development. This link arises from the fact that less entrepreneurship means fewer innovations, which in turn business development negatively.
Most of the countries around the world, that have shown rapid economic progress, have achieved this progress usually during the reign of a single leader e.g. Dubai’s economic growth in particular and that of the UAE’s in general primarily happened in the past three to four decades which was the reign of Sheikh Mohammed bin Rashid Al Maktoum and his father.
Although it is true that economic growth alone can not bring sufficient changes in the average level living standard of people living in a particular country, it is an important component for obtaining higher quality of life. So, one of the major aims of any country across the world is to attain higher level of economic growth.
However, the real GDP per person in the country more than doubled between 1963 and 2003 (Parkin 425). In the rest of the world, specifically Asia, the growth in real GDP was even greater.
Specifically, a look at the world's seven biggest economies (United States, Japan, Canada, France, Germany, Italy and United Kingdom) shows that real GDP per person has grown steadily from 1963 to 2003.
A brief background of the country is provided. Macroeconomic indicators and market development changes are discussed. The paper includes a brief analysis of future economic trends in Indonesia. Implications for the future of economic development in Indonesia are
Percentages encompassed in 1980 sum to less than 100 owing to the explanation that contributors depicted meager values. For instance, population in 1980 encompassed undersized statistics. This expounds
Negative growth is when the economy is in recession and depression and vice versa and that is, the reason and features the article covers effectively. I suggest that an increase in economic growth is associated with improvement in the living standards of people.
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