Economic growth manifests itself in the accumulation of factors and technical progress. Such changes create impact upon trade through the variations in the pattern of production, consumption and the international terms of trade. In this article we will discuss about the production and consumption effects of growth on trade. Production Effects of Growth: As the process of economic growth facilitates [...]
In this article we will discuss about the theory of immiserising growth. The process of economic growth may bring about an increase in level of output in the growing economy and the wealth effect may even be positive but the deterioration in the terms of its trade may be so large that it more than offsets the positive wealth effect. [...]
Following are the various factors which affect economic growth of countries: 1. Supply of Land and Other Natural Resources 2. Capital Formation 3. Human Capital 4. Technological Progress and Economic Growth. Factor # 1. Supply of Land and Other Natural Resources: The quantity and quality of natural resources play a vital role in the economic development of a country. Important [...]