Economic Growth kisi知识密集型服务业经济增长u.tr.pptVIP

ECONOM?C GROWTH ECONOM?C GROWTH Growth = Annual Growth Rate of p c Income, GDP Growth Rates across the world 65 – 95: “spectaculat”: China (8.2 %) “very good”: East Asia (5.5 %) “decent”: South East Asia “bad”: Latin America “very bad”: Sub Saharan Africa MODERN ECONOM?C GROWTH : BAS?C FEATURES Today a growth rate of 2% is no surprise! Leaders over past four centuries: 1580 – 1820: Netherlands 0.2% (real p c GDP growth), 1820 – 1890: U.K. 1.2 % (annual growth of GDP), 1890 – 1989: U. S. 2.2 % (average annual growth rate). With a 2% rate, nation’s pc GDP doubles in 35 years = shorter than a life span! THEOR?ES OF ECONOM?C GROWTH Economic growth is the result of abstention from current consumption. Economy produces variety of products = production generates income = Income buys these commodities produced (depending on distribution of income and preferences). C?RCULAR FLOW OF ECONOM?C ACT?V?TY Firms Households Consumption Expenditure Wages, Profits, Rents outflow inflow outflow inflow investment savings TWO GROUPS OF COMMOD?T?ES Consumption Goods: Produced for the purpose of satisfying human needs and preferences = Households buy Capital Goods: Produced for the purpose of producing other commodities = Firms buy SAV?NG - INVESTMENT If all income is paid out to households, and if households spend their income on consumption goods, where doest the market for capital goods come from? Households save, by abstaining from current consumption, households make available pool of loanable funds that firms use to buy capital goods. Buying power is channeled from savers to investors through banks, individual loans, governments, and stock markets. START?NG PO?NT OF ALL OF THE THEORY OF ECONOM?C GROWTH: Without the initial availability of savings, it would not be possible to invest and there would be no expansion! Macroeconomic Balance: Investment Demand = Savings Leakage SAV?NG INVESTMENT Households’ Choice Households receive income Y, can either save or c