Economic Growth and Economic Development : The Questions

DIFFERENCES BETWEEN ECONOMIC GROWTH AND ECONOMIC DEVELOPMENT:

CROSS COUNTRY INCOME DIFFERENCES

This chapter reviews the literature that tries to explain the disparity and variation of GDP per worker and GDP per capita across countries and across time

INCOME AND WELFAREo There is a big relationship between cross-country

income differences because high income levels reflect high standards of living .Having insufficient money to lead a healthy life is a highly significant cause of health inequalities, there is a clear relationship between wealth and health - the wealthier you are the heathier you are likely to be.

ECONOMIC GROWTH AND INCOME DIFFERENCES

Some reasons one country is richer than another: An increased economic growth with increased capital

input. Their growth can be considered counter-productive, in

terms of employment for an economy. The correlation between growth and income is well

know. Usually measured using GDP and labour earnings. Sustainable increase in living standards. Life expectancy is positively correlated with incomes.

WHY R THEY GROWING AT A STEADY PACE?

Huge economic progress in the case of the income per capita´s evolution.

Educated people are more productive and can innovate on existing technology.

Qualifiers workers have powerful effects on individual earnings, on the distribution of income and on economic growth.

ORIGINS OF TODAY´S INCOME DIFFERENCES&WORLD ECONOMIC GROWTH

They kept an ideal annual growth to maintain effiency.

People could choose to work fewer hours. Countries that were poor not so long ago grew

rapidly. Increased economic growth with increased

capital input. Sustainable increase in living standards.

An economic inequality or the gap between rich and poor countries, income inequality, wealth and income very difference.

Growing inequality was one of the biggest social, economic and political´s challenges.

Emerging economies´s countries are more unequal than rich ones.

European countries have the smallest income disparities with a low coefficient for disposable incomes

CONDİTİONAL CONVERGENCE The idea of convergence in economics (also sometimes

known as the catch-up effect) is the hypothesis that poorer economies' per capita incomes will tend to grow at faster rates than richer economies. As a result, all economies should eventually converge in terms of per capita income.

CORRELATES OF ECONOMİC GROWTH What types of countries grow more rapidly? In other

words, we would like to learn which specific of characteristics of countries (including their policies and institutions) have a casual effect on growth.

FROM CORRELATES TO FUNDAMENTAL CAUSES

South KoreaSingaporeNigeria

THE AGENDA

The 3 major questions that have emerged from the brief discussion are;

1. -Why are there such large differences in income per capita and worker productivity across countries?

2. -Why do some countries grow rapidly while other countries stagnate?

3. -What sustains economic growth over long periods of time and why did sustained growth start 200 years or so ago?

Gizem Özçelik Erhan Sağlam Duhad Mohamed Victor van Valhenzuela