Economic growth & development

How economic growth leads to economic development? (1)

Increased household income

How economic growth leads to economic development? (2)

Fiscal dividend

What may prevent economic growth leading to economic development?(1)

Cause of growth, if done via things such as harmful gov’t spending like more military spending, no benefits for the people.

What may prevent economic growth leading to economic development?(2)

Costs of growth, if fueled by negative ext goods like primary or secondary sector production, will be harmful in long run

What may prevent economic growth leading to economic development?(3)

MNC, they can exploit and underpay labour, tax avoid and have neg ext on environment

What may prevent economic growth leading to economic development?(4)

Increase GDP isn’t equally distributed, leading to higher inequality

What curve is used for inequality?

Lorenz curve

What may prevent economic growth leading to economic development?(5)

Government instability, preventing reinvestment and better sol