Economic Growth and Challenges in Low-Income Countries

Economically-Challenged Countries

Countries lacking economic and legal stability.

Market-Oriented Institutions

Structures needed for economic growth and investment.

Macroeconomic Policies

Strategies differing between low and high-income economies.

Political Instability

Frequent changes in government affecting economic conditions.

Human Capital Investment

Funds allocated for education and skill development.

Capital Accumulation

Building savings for future investments.

Foreign Aid

External financial assistance to support economies.

Cyclical Unemployment

Job loss due to economic recession.

Natural Rate of Unemployment

Baseline unemployment rate in an economy.

Barter System

Trading goods without using money.

Social Benefits

Financial support programs for unemployed individuals.

Labor Market Connection

Linkage of workers to job opportunities.

Inflation Causes

Factors leading to rising prices in economies.

Budget Deficits

When government spending exceeds its revenue.

Monetary Policy

Central bank actions to control money supply.

Converging Economy

Country catching up to technology leaders.

Trade Barriers

Regulations restricting international trade.

Trade Surpluses

When exports exceed imports.

Trade Deficits

When imports exceed exports.

Capital Inflows

Investment money entering a country.

Infant Industry Argument

Protection for new industries until established.

Environmental Concerns

Issues related to ecological impacts of trade.

Unfair Labor Practices

Exploitation of workers in trade agreements.