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Terrorism Affecting The World Economy - Essay Example

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Summary to essay on topic "Terrorism Affecting The World Economy"
Terrorism has been a menace in more than one ways and has severely affected the world economies all over. If we look at economically, terrorism has had 4 main affects globally. Firstly, it has severely impacted the capital stock. We look at the impact of terrorism from China's point of view, which has been the biggest market leader in world economy in more than one ways.
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Download file "Terrorism Affecting The World Economy" to see previous pages... To trigger development, it encouraged the formation of rural enterprises, liberalized foreign trade and investment, introduced education reforms, and invested heavily in industrial production. In several peak years, the GDP hit as high as 13 % and today the per capita income has quadrupled compared to what it was 15 years and if the predictions by various analysts hold true,
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the Chinese economy will cross that of United States in another 20 years. (Khan 2007)
According to a research conducted by IMF in an attempt to find the key sources of its growth, it was found that the increase in the number of Chinese workers has been one of the major factors of its growth. At the same time capital accumulation through the growth in the overall assets of the country, new factories, manufacturing machinery and development in its communication systems have also marked its growth.
According to most theoretical and empirical analysis conducted, more than 42 percent of china's growth has to do with productivity gains since 1979-94 but after 1994 capital took over as the most significant and primary source of growth. This marks an avid departure from the more traditional views on development wherein capital investment takes the lead.
In most cases, economists studying Chinese Growth have faced lots of theoretical and empirical issues most of which cr...
It elaborates over the link between productive factors such as capital and labour to output. This model is mostly applied to market economies but can also be used for command economies. In addition, finding from such empirically modelled data has led to the conclusion that in recent year's capital investment in goods and technology have led to increase in productivity. (A Measurement of the Contribution Made by Foreign Investment 2005)
India has shown remarkable economic growth for the past three years of its running. For a decade, it has been registering an economic growth of 7% plus which has led to reduction in poverty by 10 %. However 60% of India's population continues to thrive on agriculture which makes a poverty alleviation a major economic channel. The fact that droughts and floods are still common in the nation, does not sit too well with the agents of economic growth.
According to a hypothetical analysis that was recently conducted, one main reason behind India's economic growth has been the structural transformation that has been adopted by the national government.
India's economic growth has been oft conceived as directly related to that of its performance in the service sector in particular. Its growth rate was above 11 % in 2007 and contributes to 53 % of GDP today. Investment in industrial sector has been another key component of its growth and it contributes to 29% of its GDP where as agriculture is 17 % of its economy. Manufacturing sector has emerged rapidly and has shown remarkable progress between 2005 and 2006. It grew by 12 % during this time where as communication and storage sectors grew by 16 %. (Indian Economy overview ...Download file "Terrorism Affecting The World Economy" to see next pagesRead More
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