Running head: CAUSES OF ECONOMIC GROWTH 1

Causes of Economic Growth

Ajender Anugu

Kanagarajan Mahalingam

Kinjal Mudgal

Mahesh Panguluri

Sarika Sadulla

Zil Shah

Campbellsville University

Residency Group Project Section I & II

Day 1 - 24 January 2020

CAUSES OF ECONOMIC GROWTH 2

Ajender Anugu

Article 1 Summary

Bibliography

Pollin, R. (2010). Economic Prospects. New Labor Forum (Sage Publications Inc.), 19(3), 82–

85.

Economic Prospects. New Labor Forum

The author is an American economist. He is a professor of economics at the University of

Massachusetts Amherst and founding co-director of its Political Economy Research Institute.

The article is targeted on Economic Prospects U.S. foreign policy and the Jobs Crisis the U.S.

has been commerce quite it exports for cardinal straight years. an outsized range of analysts,

together with several progressive economists, suppose that we tend to might so deliver major

employment advantages within the U.S. through a shift in our trade policies. One approach

would be merely to impose new tariffs on imports returning into the U.S. this might increase the

costs of foreign merchandise within the U.S., creating them less enticing to customers. Another

would be to lower the worth of the dollar by, say, twenty % relative to the monetary unit,

Japanese yen, and Chinese yuan. presumptuous this might be accomplished, the cheaper dollar

would mean that the costs of foreign-made merchandise would rise within the U.S. market,

whereas the costs that foreigners would get hold of U.S. merchandise would fall. the simplest

thanks to build these problems easier is for the U.S. to plan to a group of policies capable of

delivering economic condition. If the U.S. with success enforced economic condition policies,

then a very important further result would follow: the prices to U.S. employees would fall

sharply from gap the economy to imports. From the workers’ position, trade advocator policies
CAUSES OF ECONOMIC GROWTH 3

are literally a variety of social protection. however, trade advocator measures area unit a poor

substitute for direct varieties of social protection, together with particularly economic condition.
CAUSES OF ECONOMIC GROWTH 4

Article 2 Summary

Bibliography

DeNicco, J., & Laincz, C. A. (2018). Jobless Recovery: A Time Series Look at the United

States. Atlantic Economic Journal, 46(1), 3.

Jobless Recovery: A Time Series Look at the United States

The author is a professor at Mihaylo College of Business and Economics, California State

University at Fullerton. He won the best article award from The Atlantic Economic Journal in

2017.

The following article is fascinating as a result of the author uses the vector motor vehicle

regression models that controls log variations in gross domestic product (GDP), the pct., and

changes within the pct. to point out that following a recession, the speed of decrease within the

pct. considerably slowed . The phrase “jobless recovery” became fashionable within the U.S.

throughout the 2000 recession, once it took seven straight quarters of gross domestic product

(GDP) growth to end in decreases within the pct. With the 2008 recession, the out of work

recovery found a replacement life within the starting stages of the recovery. The post-

recessionary amount is considered as a out of work recovery if the speed at that the speed of state

declines is statistically and considerably slower than previous recessions. The applied

mathematics proof found during this paper lends credence to the relevancy of the phrase once

describing changes within the U.S. labor dynamics over time. we discover that as U.S. value

growth recovers once a recession, the scale of decreases within the pct. have lessened over time.

Using volt-ampere models and dominant for log variations in value, the pct. and changes within

the pct. shows that the U.S. entered Associate in Nursing era of out of work recoveries. With the

rise in proportion of girls within the hands and the redoubled proportion of employment within
CAUSES OF ECONOMIC GROWTH 5

the service sector play the foremost distinguished roles in explaining the structural break for

changes in state.

Article 3 Summary

Bibliography

Marginson, S. (2016). High Participation Systems of Higher Education. Journal of Higher

Education, 87(2), 243–271.

High Participation Systems of Higher Education

The author is a Professor at International Higher Education at the UCL Institute of Education,

University College London, UK, and Director of the ESRC/HEFCE Centre for Global Higher

Education.

The article is interesting because the author specifies the global dimension of higher education

and its importance. This article reviews the dynamics of high participation systems (HPS) of

higher education, including the implications for social stratification and inequality. As measured

by the UNESCO Gross Tertiary Enrolment Rate (GTER).

As the world is quickly turning into well educated at higher level, the formation and growth of

High Participation Systems of upper education is incredibly a lot of common to each nation that

achieves minimum wealthiness and coherence. In nearly all countries with per capita GDP of

over regarding $5,000 every year there's a semi-permanent tendency to growth of participation.

The tendency to high participation systems (HPS) is common to countries that adjust wide in

rates of process, education system structures, and finance arrangements, however, share the

tendency to urbanization. There was a worldwide tendency to High Participation Systems (HPS)

in educational activity. many various scientific discipline theorizations and analytical and

empirical strategies are often wont to illuminate social phenomena like the tendency to HPS.
CAUSES OF ECONOMIC GROWTH 6

History combines semi-permanent evolutions and transformations with nativized and episodic

events; and combines world phenomena with local and regional articulation and variation. World

tendencies have native motors, also as cross-border and world motors. The formation and growth

of High Participation Systems of upper education is common to each nation that achieves

minimum wealthiness and coherence. this is often extremely important. The precise styles of

HPS, system structures and rhythms of enlargement, and therefore the finance of scholars, vary

from country to country. The tendency of aggregate economic demand is fragmented, variable,

and seems meager to elucidate the iniquitousness and dynamism of HPS growth. The exceptional

undeniable fact that distinguishes this era in history is that the ambition for educational activity

currently seems unbeatable, virtually all over, whereas the time span for the belief of ambition is

shrinking

Article 4 Summary

Bibliography

Gh. H. Popescu, E. Nica, R.-O. Ștefănescu-Mihăilă, & G. Lăzăroiu. (2016). The United States

(U.S.) Steel import crisis and the global production overcapacity till 2016. Metalurgija, (3), 538.

THE UNITED STATES (U.S.) STEEL IMPORT CRISIS AND THE GLOBAL PRODUCTION

OVERCAPACITY TILL 2016

The author is a professor at Dimitrie Cantemir Christian University, Bucharest and General

Director of the Saint Pantelimon Emergency Hospital, Bucharest, Romania.

This article contributes to the literature by providing evidence on the mechanisms forming the

foundation of the first-rate productivity growth in the U.S. steel industry, models of growth in the

international steel supply chains, and the advantages of adequate trade remedy implementation

for the U.S. steel sector.

CAUSES OF ECONOMIC GROWTH 7

The u. s. (U.S.) steel sector is in import crisis that developed from the convergence of forces that

compromise the expansion in international steel capability and an increase in dishonesties import

competition. Dishonest exchange steel product generated crisis within the steel sector which can

bring shake-up or destruction of U.S. steel capability. The rising imports of below the belt listed

steel displace the inner steel makers and it'd abate the links between steelworkers and steel-

consuming industries. The damage of the U.S. steel producing base might raise the liability of

U.S. production to produce disturbances and cause sharply greedy practices in steel and a broad

vary of steel-using sectors. The insulating material economic improvement has sealed out request

for steel within the U.S. and intense the vulnerability of internal makers to escalations of drop

and sponsored imports of steel and steel product. Substantial government backing for and

participation within the international steel sector, related to stimulants to export drop steel in

periods of economic decline, create the steel sector structurally vulnerable to persistent rises in

exports of below the belt listed steel. The U.S. market, with its extended magnitude and open-

market necessities, may be a main objective for steel exports once the international business

undertakes a crisis amount.

CAUSES OF ECONOMIC GROWTH 8

Kanagarajan Mahalingam

 Article 1 Summary

Bibliography

Thomas W. Lester was the Dean, College of Engineering, University of Lexington, KY from

1991 to 2008.

Nikhil Kaza is an associate professor, City & Regional Planning, Environment, Ecology and

Energy Program, University of North Carolina, Chapel Hill.

Sarah Kirk is an associate Dean in the Willamette University.

Journal of the American planning association, 79(4), pp.295-313.

Making room for manufacturing: Understanding industrial land conversion in cities.

In the article, the authors have spoken about the restructuring of urban economies. The main

concern of the article is that he manufacturing sector is overshadowed by the rise of service

sector jobs due to which number of blue-collar jobs are declining. The problems that are

associated with this change are rise in price of housing, over crowdedness in urban area; chances

of revival or establishment of new manufacturing units is fading and along with that the

possibility of investment from manufacturing companies are lowering (Rose, 2018). The article

addressed this problem and analyses industrial land conversion. By analyzing the problem of

lowering amount of manufacturing industries, this the article provided solution for the concerned

problem and thus suggested planners to identify strategic industries and find the effectiveness of

such industries so that policies can be made accordingly.

CAUSES OF ECONOMIC GROWTH 9

Article 2 Summary

Bibliography

The author of the article works in Department of Nursing, national and

Nursing Kapodistrian University of Athens, Athena

Archives of Hellenic Medicine / Arheia Ellenikes Iatrikes. Nov/Dec2011, Vol. 28 Issue 6, p767-

776. 10p. Language: Modern Greek

Medical, social and economic implications of computed tomography and the evolution

of multislice computed tomography scanners.

The authors in the article have pointed the effect of computed tomography (CT) technology on

medical, social and economic factors. It has been observed that the radiation of CT

adversely affects the human health. From the article, it can be observed that due to the radiation

of CT 3000 patients were diagnosed with cancers. Consequently, a 10% social cost burden is

imposed on the country. However, the technology is efficient in diagnosing various medical

conditions. The only drawback is its radiation (Meltzer, 2018). It has been estimated that the use

of this technology will increase in the coming years and thus the chances of cancer will increase

too. Thus, it is suggested that the cost benefit analysis should be done before using the

technology. To control health hazards from CT a law has been passed in California in 2012 in

order to penalize clinics if patients receive wrong radiations.

Article 3 Summary

Bibliography

William K. Bellinger is an associate professor of economics at Dickson College,

Pennsylvania. Jue Wang is an assistant professor at Leiden University Institute for Area Studies,
CAUSES OF ECONOMIC GROWTH 10

the Netherlands. Review of Black Political Economy. Sep2011, Vol. 38 Issue 3, p253-270. 18p. 4

Charts.

Poverty, Place or Race: Causes of retail gap in smaller US cities

The article studies about the cause of retail gap in relatively smaller cities in the US. The factors

on which the study was based were inner city, relatively low income, central location and

percentage of minority resident. The study was conduct over 39 small and mid-sized cities and

neighborhoods. The study was based on various products to diversify the study in order to avoid

maximum errors. However. All the result found to provide the same result, which indicates that

the reason of retail gap in inner cities is due to the minority residents (Scott, 2017). The retail gap

is more where percentage of African American resident are more in number. The article does not

provide any solution for the problem but identifies it and is the main objective of this article.

Thus, from the article one can understand that reducing this retail gap would develop the urban

retail sector too.

Article 4 Summary

Bibliography

The Author Ben Shalom Bernanke is an American economist and is associated with Brookings

Institution. Issues in science and technology, 27(4), 37-41.

Promoting Research and Development the Government’s Role

In the article the author speaks about the support from government is required in the field of

R&D is important. The author has provided evidence that in the United States (US) the support

of government in innovation has developed communication and transportation technology in

20th century. R&D is the heart of promotion of technology in a country (Kim et al., 2016). The
CAUSES OF ECONOMIC GROWTH 11

economic growth of a country is only achieved if basic technological development is attained. It

is certain that private organizations would not invest significantly in such R&D programs as

those does not provide profits. The importance of government’s role in R&D is addressed by

most of the countries and it is evident from rising spending of emerging economies on R&D. The

promotion of R&D can be done by funding research facilities directly, private researchers and

tax incentives (Hu & Yongxu, 2019). However, it should be noted that only funding would not

help the cause but involving a greater number of skilled researchers is required to have

successful R&D outcomes.

CAUSES OF ECONOMIC GROWTH 12

Kinjal Mudgal -

 Conference Proceedings: Dairy Nutrition, An Engine for Economic Growth. 

Whitsett-Morrow, D. (2018). Conference Proceedings: Dairy Nutrition, An Engine for Economic

Growth. Food and Nutrition Bulletin, 39(2_suppl). doi: 10.1177/0379572118763628 

SUMMARY 1

The Author of this paper is currently a Director at US Dairy Export Council. She has a massive

experience in working at dairy education industries. She is skilled in business strategy,

management and international market regulatory affairs, child nutrition and nutrition research in

whole. This source is reliable because her expertise, education and skills are related to the dairy

nutrition and one can vouch for her knowledge and research regarding the topic. Also, it was

published by Food and Nutrition Bulletin which seems to be a great source to trust on.  

This article is interesting because something like Dairy nutrition affecting the economic growth

of the country is something one can hardly know. This made the read through of the

journal possible and interesting points, a gist of the journal is stated below.  

This conference was conducted to find out the ways dairy products can help reduce malnutrition

and increase the economy along with improving the health of people globally. The researchers

from varied disciplines had come together to find ways to fight malnutrition and stimulate the

economy. According to the author and the researcher's conclusion, using ingredients from dairy

products in the supplemental foods improves nutrition, decreases malnutrition, and grows
CAUSES OF ECONOMIC GROWTH 13

economy. These ingredients are very cost effective and great for investing long term. (Whitsett-

Morrow, 2018) 

The shortcomings that I feel in this article is that the author was received no financial funding for

such an important research which plays a major role growing economies. 

 Disruptive Technology: Economic Consequences of Artificial Intelligence and the

Robotics Revolution. 

King, Brett A; Hammond, Tyler; Harrington, Jake. (2017). Disruptive Technology: Economic

Consequences of Artificial Intelligence and the Robotics Revolution. Journal of Strategic

Innovation and Sustainability, 12(2). doi: 10.33423/jsis.v12i2.801 

SUMMARY  2

There are three authors of this journal who jointly did a great amount of research and analysis in

order to give us enough knowledge about how disruptive a technology can be, through this

journal. The authors are well educated and skilled in their fields. Brett King is an amazons best-

selling author, a futurist and a speaker at number of radio shows. Hammond Tyler, as well known

as Philip Hammond is a chancellor of the ex-chequer. Philip is interested in expressing and

predicting years ahead for the economic and technological growth and their relation.  

This journal was published in 2017 and the authors goal was to focus on the impacts of tax

revenues and lost wages caused by the technologies like Artificial intelligence as well as machine

learning on the economic growth of the country. It is extremely prominent that these

technologies training the robots and computers to do human jobs will definitely take away the
CAUSES OF ECONOMIC GROWTH 14

jobs from people. The employee displacement also causes the losses in tax revenue causing

subsequent decrease in economy. (King, Brett A; Hammond, Tyler; Harrington, Jake, 2017) 

 Government spending and the distribution of economic growth.  

Mayer, S. E., Lopoo, L. M., & Groves, L. H. (2016). Government spending and the distribution

of economic growth. Southern Economic Journal, 83(2), 399–415. doi: 10.1002/soej.12148 

SUMMARY  3

Susan E. Mayer is an author of a well-known book What money can't buy. She is a former dean

and professor at university of Chicago and has written number of articles and books related to

behavioral economics. Leonard M Lapoo has a PhD from university of Chicago and has a

specialty in economic demography. Lincold Groves has a MA in Applied Economics. This source

is trusting and reliable because of the high skilled authors having expertise in economics from a

well-known university.  

Information: According to the authors, the government spending's has increased since last 50

years and are having great effects on the economic inequality of the country. The inequality is

increased. Authors state the policy makers, politicians and economists are accountable to these

changes. Family income growth can be improved by social spending's and not nonsocial

spending's by the government is something that the authors concluded based on the historical

data and current government analysis. (Mayer, Lopoo, & Groves, 2016) 

This journal is interesting because it is imperative to focus on the core issue of the economy and

it is government who controls almost everything in this country including the finance. 
CAUSES OF ECONOMIC GROWTH 15

 National Health Expenditure Projections: Modest Annual Growth Until Coverage

Expands and Economic Growth Accelerates. 

Keehan, S. P., Cuckler, G. A., Sisko, A. M., Madison, A. J., Smith, S. D., Lizonitz, J. M., …

Wolfe, C. J. (2012). National Health Expenditure Projections: Modest Annual Growth Until

Coverage Expands And Economic Growth Accelerates. Health Affairs, 31(7), 1600–1612. doi:

10.1377/hlthaff.2012.0404 

SUMMARY  4

There are total 7 authors who worked on this journal. Sean Keehan has been teaching macro,

health and microeconomics at Loyola University and published various health affair articles.

Along with Mr. Keehan, other authors are also highly skilled in the fields of economics and

health affair and has posted multiple articles related to these fields.  

This journal is a reliable journal for this assignment because of the big names who participated

together which means a great level of expertise.  

This journal states that the economic growth change, population aging and medical price growth

are going to adversely affect the spending growth of national health. Authors predict that the

healthcare would be 20% of the total economy by 2025 because the spending in the healthcare

sector has been growing so fast. Also, the total health expense paid by state, local and federal

government is predicted to increase vastly by 2025 which will greatly affect the economy of the

country. (Keehan, et al., 2012) 

CAUSES OF ECONOMIC GROWTH 16

Mahesh C Panguluri

Article 1 Summary

Bibliography

Hari Nugroho, N. Haidy Ahmad Pasay, Arie Damayanti, Maddaremmeng Andi Panennungi..

(2019). Blunt Instruments: Avoiding Common Pitfalls in Identifying the Causes of Economic

Growth

The advanced understanding of human capital & Technological advancements has given

logically exceeding insights on how countries differ one from another globally. Yet there were

more reasons to consider for variations among nations. And there was 3rd reason for a nation to

expel from its terms of economic growth. This article is mostly about the institutional growth and

its impact on any given nation. If we start defining human capital this article is explaining how

the economic growth has impact on the future of our generation and our children’s generation

and the future generations to come. This is a transformation that we are starting to experience

today so on a cusp of this change. Some of these changes were present already now in everyday

life and some are yet to come in near future. This is profound transformation. It’s the first time

the humanity is moving towards the systems of both economic governance and economic

production which are human centric rather than machine centric.

Article 2 Summary

Bibliography
CAUSES OF ECONOMIC GROWTH 17

Dennison TK, Ogilvie S. (2016). Institutions, Demography, and Economic Growth. Journal of

Economic History. 2016;76(1):205-217. doi:10.1017/S0022050716000486..

if we ask ourselves as what the human thinks about human capital is to start with, we started

defining human capital as an economist in the society by vary tangible definitions. Which are

hardly human, really in their nature? First of the most we looked at the educational attainment

and formal education and skills. Both of those are embedded in terms of the years and the jobs

and the educations types of education achieved. indifferent towards we later added thigs like

work experience, that is the evident that showed us that we stayed in a position. And that some

how was reflective of our human capital, our ability and our potential. Later to this we added

more of less tangible things such aptitude to work and attitude to work. Over the recent years we

started shifting towards more individualized and more human dimension of human capital. We

started measuring and started trying to reflect in our assessment of human capital. Things like

creativity, innovative capacity of workers and individuals, risk attitudes, attitudes towards risk

attitudes, attitudes towards entrepreneurship abilities to manage risk and abilities to manage

different forms of entrepreneurship blend. If we observe here the author states that the things

have been very complex and very much not measurable. And its evident that something very

individualized and more like very human.

Article 3 Summary

Bibliography

Azam M, Shahbaz M, Kyophilavong P, Abbas Q. (2008). External Sources and Economic

Growth-The Role of Foreign Remittances: Evidence from Europe And Central Asia..
CAUSES OF ECONOMIC GROWTH 18

In more recent years we started acknowledging things like social and emotional skills, ability to

form networks, and ability to have empathy towards other human, and ability to listen what they

are expressing. Ability to lead networks and ability to carry with us cross different geographies.

Over the years we are now living in the global pattern of flows of skills and human capital, and

those flows are no longer defined just by narrow definitions of skills, they are defined instead by

talents, intrapreneurial abilities and attitude towards entrepreneurship, ability to innovate and

even an interest to pursue innovations as such. The next thing would be the geographic

distribution of human capital. Until now the traditional flow of human capital flow worldwide

was from the so called south, in other words from the emerging economies and middle-income

economies and low-income economies towards the so-called north. The advanced economies.

Ans then there was a mobility of human capital within north from the one advanced economy to

another. The next task in this journey of economic growth would be the ear of geographic

distribution of human capital, up until now the traditional form of human capital flow worldwide

was from the so called south, in other words from the emerging economies. Now what we re

witnessing today is the increase in the breakdown of this pattern and its reversal and we are

witnessing the implications of flows of human capital with in the southern. Again, the author

used inverted commas here, economies, especially middle-income economies for example

movement of human capital from chile to Argentina or from the Argentina into south Africa and

so forth. But also, we are witnessing a movement of human capital from the north into the

emerging economies and middle – income economies like Ireland is at the forefront of all of this.

Article 4 Summary

Bibliography
CAUSES OF ECONOMIC GROWTH 19

Taivan A, Nene G. (2016). Financial Development and Economic Growth: Evidence from

Southern African Development Community Countries. Journal of Developing Areas.

We are the economy which simultaneously attracts huge numbers of human capital and at the

same time ships out of the economy. And this is not just related to crisis that we are facing today.

Even though we rank as the 12th in the economic world, we still have ability to attract key talent

into the economy, yet we ranked 40th in the world in our ability to retain that capital and the

economy. In my impression this is something crucial the distinction between the ability to attract

and retain human capital is very important for steady economic growth. If we look at our

economic growth by education, in 1990’s the MBA has the most completed degree by the

economic professionals, by 2000’s the MBA was displaced by MFA master of fine arts, while the

movement from the MBA to MFA was the broadening of the education scope, because the degree

is much broader at the same time it retains its much hierarchical silent bounded structure of

formal education. It is still an MFA and it is still abutted fine arts. The next big thing in

economic education is creation of kaleidoscopic mosaics of knowledge skills. In this the

knowledge and skills acting as enablement rather than defilement in itself in terms of what

defines our human capital and in particularly the knowledge and skills were looking for will be

enabling creativity and skills based innovation, the innovation that was anchored in our

knowledge and yet same time is broad enough encompass new categories of knowledge.

Entrepreneurship will come to the full front of education system, the reason beyond that would

be, we cannot educate entrepreneurs but we can enable them by giving tools to manage

uncertainty to look at the world from the point of view of any uncertainty present in an
CAUSES OF ECONOMIC GROWTH 20

opportunity. The current education system does not certainly provide these tools at all, not just

in the USA, all over the globe.

SARIKA SADULLA

Article One: Economic Distress and Resurgence in U.S. Central Cities: Concepts, Causes,

and Policy Levers; By Kodrzycki, Yolanda K. yolanda.kodrzycki@bos.frb.org 

Muñoz, Ana Patricia 

This article provides a comprehensive review literature concerning United States central

cities development and economic distress in the era of second half in 20th century. The article

literature exposes that growth of city appeared to be greater in metropolitan parts with

auspicious weather, advanced growth and increased human capital, on the other,

distress was intensely associated with legacy of city level manufacturing (Kodrzycki & Muñoz,

2015). Moreover, the article asserts that distress has been increasingly stubborn. Nonetheless,

that of various cities has attained resurgence basically through a combination of collaboration in

diverse institutions and sectors, strong leadership, broad-based and clear strategies, in addition

to significant investments in infrastructure.  

The article further explores measurement concerns by relating two key methodologies employed

to recognize central cities with poor performances; Comparisons within similar

CAUSES OF ECONOMIC GROWTH 21

cities with smaller samples and also across a broad general cross section of specific cities. The

article establishes out that, the employed approaches generated same assessments of

city’s prominence, apart from in various instances where progress of city’s been uneven

across period of time or regarding alternative measures.  

Article Two: Understanding Price Growth in the Market for Targeted Oncology Therapies;

By Sussell, Jesse; Vanderpuye-Orgle, Jacqueline; Vania, Diana; Goertz, Hans-

Peter; Lakdawalla, Darius 

This article analyzes and assesses the various changes concerning changes over a period of

time in level of drug revenues, count of patients in the oncology therapies based in United States.

Moreover, the article insinuates on studies if price growth could have been influenced by a

continual capability by various pharmaceutical companies in gaining profits. The article

employs a panel regression to explore diverse trends in revenues, patient counts and

prices covering U.S national data comprising of projected oncology therapies established in

varied periods.  

The article finds exposes findings in that, prices unevenly increased whereas distribution of

annual average revenue declined. However, the article proposes that, impending research

concerning the causes of quantity weakening can greatly boost insights over

pharmaceutical strategy and policies. Nonetheless, more targeted oncology therapies are

anticipated to broaden globally resulting to intensifying prevalence of price growth in the

existing markets and preferences concerning oncologists to recommend targeted drugs basically

for patients. 

Article 3: Higher Test Scores or More Schooling? Another Look at the Causes of Economic

Growth; By Theodore R. Breton 

CAUSES OF ECONOMIC GROWTH 22

The issue on the key factors determining growth of economy has increasingly been a significant

area in economic research. This article employs a dynamic improved Solow approach to

assess the impact of global investment and test scores analyUsis in tutoring and schooling

regarding growth of the economy in 55 nations (Breton, 2015). This article proposes that both

investment and test scores in school-based can enlighten rates of growth in various nations.

However, several previous researchers have analyzed the effects of education towards growth of

economy. This article affirms that, significance of human capital essentially for economic growth

has rapidly invited demands through numerous studies that failed to establish a positive

association amid economic growth and quantity of education in cross-nations analysis.  

The article highlights the significance of quality education affirming that, if level of education

quality seems low it could not generate the appropriate skills and competencies hence resulting

to economic growth. The article proposes that incorporating schools with variable quality

education can effectively be interpreted as improving for errors of measurement because years of

enrolment and schooling rates could assess schools with higher test scores and human capital

with identifiable errors.  

Article Four: Economic and Behavioral Influences on Small Businesses Bankruptcy;

By Vlad, Doina G. 

This article encapsulates on small business activities within U.S and further analysis on

behavioral and economic impacts on contemporary bankruptcy levels in businesses. The article

delineates the significance and impacts of changes in economic variables, for instance interest

rates, producer price index and business bankruptcy filings for small business development of

legal structures. The article exposes the motives concerning small business level of bankruptcy

as associated to either through borrowing of costs, manner of proprietorship, interrelated industry

CAUSES OF ECONOMIC GROWTH 23

employment factors and other factors (Vlad, 2011). The article affirms that, some of the

factors linked with failure of small businesses include scarce short-term debt levels with

moderate huge borrowing costs, undue use of debt and under capitalization specifically

for startups. The article proposes that, both the business sector and government need to provide

proper incentives far from the present levels purposely for new entrants in various businesses,

which could comprise tax incentives and also responsive regulation of fiscal policy. 

ZIL SHAH

1. Comparative Legal Aspects of Ensuring the Economic Security of Companies in

Resolving Corporate Conflicts in Ukraine and the United States 

The researchers are coming from economics area and international affairs as well. The aim of the

researchers was to identify the conflicts in the corporate and how to defeat on them with

comparison of two countries. The subject of the study was corporate conflicts caused by the

corporate relations that arise between the proprietors of corporate rights. The study was based on

general scientific and special scientific strategies and techniques of scientific information. The

researchers concluded how to increase economical growth by removing corporate conflicts.

Also, they gave idea how Ukraine government can learn from US government to gain economic

development. There is an underlying assumption with this research is the revelation of the legal

nature of corporate conflicts in Ukraine remains inadequate. Also, it is being accepted that

corporate conflict is one of the major reasons behind failing economy in Ukraine. Here, it

is  noted that organizational and managerial conflicts are causes  of conflicts and such

CAUSES OF ECONOMIC GROWTH 24

conflicts are affecting economic growth. How interesting it is! (Demianchuk & Bortsevych,

2019)

2. Determinants of Shadowing of the Economy: The Genesis of Economic and Legal

Doctrines 

The reason for the study is to identify the beginning of economic and legal doctrines, based on

which it appears to be conceivable to identify the main determinants of shadowing of the

economy. The researchers are from trade university from Ukraine and they have

multiple studies around the economical variance. The meaning of "shadow economy" and

"economic shadowing" is framed as per conditions, outcomes, and causes which separately are

a subsystem of national security. The practical significance of obtained results in this study, to

formulate a hypothesis that provides a comprehensive, standardized vision of the cause of

economic shadowing. That means the assumption made by researchers was standardized vision

of the cause of economic shadowing, which is in danger since not all countries are such logical.

The most interesting piece of information is that the uplifting attitude to the shadow economy

leads to the acknowledgment of its entitlement to exist and create.  The most interesting piece of

information is that the positive attitude to the shadow economy leads to the recognition of

its right to exist and develop. (Tylchyk, Pluhata, & Kotukha, 2018)

  

3. Technological progress, globalization and low-inflation: Evidence from the

United States 

The group of economics and management students from China performed a research on

technology and globalization which has significant cause in economic

growth. The study says that the factors ruining the achievement of inflation targets are only

CAUSES OF ECONOMIC GROWTH 25

oil supply, weakness of aggregate demand, and commodity price, so on. Also, an additional area

of exceptional research in this study was to study the causes and results of low

inflation. This is  a quantitative research. The researchers  have used empirical method and New

Keynesian Phillips  Curve (NKPC) model. Furthermore, the research was supported by National

Natural Science Foundation of China. The researchers have concluded that globalization and

technology innovations, both contribute to lowest inflation over the last five years in

United States, which helps to grow economy. The most interesting fact was mentioned by the

researchers is the amount of technology being used has been more than doubled  since the late

1990s to till date. (Lv, Liu, & Xu, 2019) 

  

4. The Institutional Foundations of Inequality and Growth 

This  study is really interesting since both of the authors are great economist and one of them

is  director at Moody’s. Their knowledge and experience are highly valuated. The

researchers started this research since they found that the key variable “the quality of economic

institutions” was missed by previous researches in last decade. This study shows a unified view

of the relationship between inequality and growth. This relationship touches the increasing

economic growth. The researchers had hypothetically interpreted that income inequality

performs a key role in economic development. However, they proved that it is correct through

this study. The  study is based on stimulation estimation and random effects estimation

methods  of quantitative research and had used previous researches for the estimation. There

is  only one risk that they had data limitations on expropriation risk. The interesting information
CAUSES OF ECONOMIC GROWTH 26

of this research is  that the researchers had to collect information from almost 50 researches,

and they thanked all of them and also six different institutions.  (Davis & Hopkins, 2011) 

  

1. Name three areas where (most of) your research agrees (each answer should be no

less than 250 words for a total minimum of 750 words

Technology 

The research papers, here studied, gives clear recognizable proof that after some time the

aggregate impact of technological change has been to build the relative demand for progressively

educated workers. This has consistently been helped countries and trade to support in the market.

Technology additionally expands productivity and defers rising inflation. Technology helps bring

down the rate of wage growth comparative with productivity. Technological development makes

very significant commitments to the economic and social-social life. One of the studies here,

says that people work more than the past; virtues like industriousness and self-discipline are

more valued. Technological change does not just mean an approach to increase the richness and
CAUSES OF ECONOMIC GROWTH 27

wealth of the country Also the other examination here says that certain countries regularly

improve the life nature of people with the help of advanced technologies. As a result of e-

commerce made on Internet, the dimensions of commerce have changed. The producers and

consumers could meet with each other in international markets through e-commerce and make

commerce. The evidence exhibited here, additionally proposes that the overall earnings of more

and less educated workers react to changes in their relative supply. This causes governments to

help policy for investment and pulls in foreign investment. Thusly it is upgrading the exports and

assorted to technology-concentrated industry, which may increment economic growth. The

impacts of trade and technology on economic growth are likewise demonstrated in long-run

estimation, utilizing the long-term system. The investigations have recognized that technology

consistently improves export performances and the productivity which helps economic growth.

Thus, our group has a common ground that technology is the first cause for the economic

growth. 

Research and Development 

This is the second area where all the group members were able to find the research and

development has significant effect on economic growth. The country having more investment in

research and development are gaining really high profit in terms of economy. One of the

researches here, says that the executives from pharmaceutical, manufacturing, and electronic

industry asks about the creative development and innovations. For such they are in favor for the

research and development despite fixing significant problems and complexities. The other study

does comparison between Ukraine and United states and asking implementation of research and

development the way united states has. Also, it says the developing economies should increase

their research and development activities, in order to achieve high economic growth. Also, for
CAUSES OF ECONOMIC GROWTH 28

developing countries, the results are steady with the across the board see that countries that are

behind develop by getting up to speed technologically. The relation between researchers utilized

in research and development departments, research and development expenditures, patents as

innovation markers, and Gross Domestic Product (GDP) as economic growth. This research

papers document that international contrasts in research and development exercises and surveys

exactly the connection among research and development and economic growth, and the

determinants of research and development differentials. The examination of the determinants of

research and development exercises shows a strong connection between these exercises and the

degree of income, recommending that research and development exercises become significant

simply after a country arrives at a specific phase of development. In this way, the baseline for the

job of research and development in economic growth of countries around the globe concur on the

huge job of various structure research and development in productivity or economic growth.

Thusly, it very well may be inferred that the developing countries should focus on research and

development to accomplish the sustained economic growth. 

Government’s role 

All through these examinations, we have discovered that the measure of economic freedom

across nations has the trait of expanding the pace of economic advancement and improving the

circulation of market income. That economic freedom is a positive and noteworthy

macroeconomic determinant of economic growth is definitely not a dubious finding. The exact

proof here shows that economic freedom decreases income inequality. Economic growth raises

income inequality. From the results of the arrangement of income inequality share equations, it

does as such by moving the portion of market income to the most noteworthy inequality, to the

detriment of the other income inequality. Made a decision by the size of the coefficient of
CAUSES OF ECONOMIC GROWTH 29

economic growth. The measure of expanded income inequality is somewhat little for

considerable contrasts in growth rates over the example of nations used in this examination.

Once more, this finding of a positive trade-off between economic growth and income inequality

isn't without debate. The job of governments can be useful in cultivating entrepreneurship and

economic growth. Most endeavors to animate business creation and development have been as

tax incentives. While special taxation, such focused-on capital gains reductions and investment

tax credits can be useful, other, once in a while increasingly inconspicuous approach elements of

consistency. Until a progressively steady condition, based upon approaches that incite private

segment growth and investment is noticeable to the activity making framework, we can expect

trashy economic growth and botched chance. Further, examines propose measuring the effect of

contemporaneous issues in strategy vulnerability, for example, quantitative facilitating. In this

way, the administration strategies are likewise significant which can help with foreign direct

investment and economic growth. 

2. Name three places where (most of) your research disagrees (each answer should be

no less than 250 words for a total minimum of 750 words).

We have covered the journal articles which state all the factors affecting the US economy and

vice versa. After reading the journals chosen by fellow teammates, I feel the three places where

our research disagrees are: 

o One of the journal articles state about the urgency of government contribution to be

involved in research and development of the country (Hu & Yongxu, 2019) but one of our other

journal states that the newer technologies like Artificial intelligence and Machine learning would

affect the economic growth adversely and tremendously in the future. (King, Brett A; Hammond,
CAUSES OF ECONOMIC GROWTH 30

Tyler; Harrington, Jake, 2017) Technological development also has a lot of Research and

development projects which are demanding government funding. This is one of the ways our

research has conflicting opinion and disagrees. The author has given proofs that within the

United States (US) the backing of government in development has progressed communication

and transportation innovation in 20th century. R&D is the heart of innovation in a country (Kim

et al., 2016). The financial development of a nation is as it were accomplished in case

fundamental technological improvement is achieved. It is certain that private organizations

would not contribute essentially in such R&D programs as those does not give benefits. The

significance of government’s part in R&D is known by most of the nations and it is clear from

rising investing of developing economies on R&D. the authors of the 2nd journal objective was

to point out on the consequences of tax revenues and misplaced wages caused by the innovations

like Artificial intelligence as well as machine learning on the financial development of the

nation. It is amazingly noticeable that these technologies preparing the robots and computers to

do human occupations will certainly take away the employments from individuals. The worker

displacement moreover causes the losses in tax income causing consequent diminish in

economy. 

 In one of the journals we stated how Artificial intelligence and machine learning will take

people out from jobs, and the unemployment would increase. (King, Brett A; Hammond,

Tyler; Harrington, Jake, 2017) Whereas it is also important to know that these two fields won't

necessarily replace jobs but automate things. So, it won't replace jobs but tasks for sure. If the

tedious and routine jobs are automated, it would create more jobs in the knowledge sector,

and this is why everyone will be motivated to study and gain knowledge to work on these jobs.

This will promote the education industry which is always better for the economic growth and
CAUSES OF ECONOMIC GROWTH 31

jobs of the country. A lot of people and expert say and it is widely recognized that there may

moreover cause displace huge numbers of laborers. This plausibility challenges the conventional

benefits showcasing of tying health care and retirement investment funds to employments. In an

economy that utilizes drastically less laborers, we got to think about how to provide benefits to

unemployed laborers. Experts oppose this idea on the estimate of the impact that robotization

innovations will have on the workforce. Whereas a few warn of massive unemployment, others

point out that innovation may make modern work categories that will employ unemployed and

displaced laborers and employees. A third group contends that the computers will have small

impact on employment in the future. Any approach measures that address long run of

employment must account for the vulnerability of results on work. 

 One of the articles has a study which concludes saying Income inequality helps the

economic growth of the country (Davis & Hopkins, 2011) which is debatable and conflicts what

most people think that is income inequality is bad for the economic growth. Financial specialists

do agree on a few focuses, though. For case that low-income families are able to contribute less

in education, in this way decreasing their chances to discover well-paying employments. Wage

disparity has expanded in about all world regions in recent decades counting United States.

Inequality implies there's a hole between the most elevated salary earners and the least pay

workers. (imbalance can moreover relate to riches). On the one hand, you'll be able contend

inequality is essential for giving motivations in a free market economy; without a degree of

imbalance, there would be financial stagnation and lack of enterprise. On the other hand, it is

argued that inequality has numerous drawbacks and is proved of fundamental problems in

society. If someone works harder and as a result gets a better wage, then this is often not
CAUSES OF ECONOMIC GROWTH 32

advertising failure. The guarantee of a better wage is basic to empower additional effort. By

fulfilling difficult work, there will be a boost to productivity driving to a better national outcome

– so everyone can have an advantage. Inequality is essential to empower business visionaries to

take risks and set up a new business. Without prospect of significant rewards, there would be

small motivating force to take risks and contribute in modern business goals. 

3. Name one thing that was most surprising to most of the group members and why.

This should be no less than 250 words. 

One thing that was most surprising to most of the group members is healthcare cost has grown

up big and it is going to bring up a drastic change to the economy. People in the United States

spend a lot of money in Healthcare and it is estimated that healthcare contribution might be

reaching about 20% of GDP by 2025. According to a recent survey, healthcare is the largest

employment sector in this decade, and it is constantly growing big. Based on prices for large

components of Healthcare, there are big spiking on drug prices have risen 60 percent these days

since 2000. People in the United states spending double on health care compared to other

countries in the world and it makes negative implications on the economy. The main reasons

behind this economy difference are a large number of the aging population and the rising cost of

healthcare components such as drugs, hospitals, Insurance.  This cost raise impacts negatively
CAUSES OF ECONOMIC GROWTH 33

with consumption of household accounting 70 % of annual economic and It affect the economy

in other areas in the Federal budget. The healthcare sector has seen a lot of changes in the last

two decades. There were so many new regulations such as HIPAA. We certainly believe that the

changes will continue to take place with demand and government policies. All these changes

come with a cost. This will be a ripple effect starting on a policy level from government bodies

to insurance providers, healthcare providers, and the patients. Although this might not be a huge

surprise considering the boom, this change will have to be monitored carefully on a lot of levels.

Healthcare is not just a national factor; it is an international market. The products, medicines, and

equipment could come from different countries and there are so many international laws that

play a vital role. 

4. Name the one thing that was most interesting to most of the group members and

why. This should be no less than 250 words

Have you ever watched a baby learning not crawl? Because as any parent knows

its gripping, first they wriggle about on the floor, usually backwards, but then they drag

themselves forwards and then they pull themselves up to stand, and finally we all clap. That

simple motion of forwards and upwards it’s the most basic direction of progress we humans

recognize, we tell it in our story of evolution as well from our lolloping ancestors to homo

erectus, finally upright to homo sapiens, depicted always a man, always mid-stride.  

So, no wonder we so readily believe the economic progress we take this very same shape this

ever-rising line of growth. But as group we personally believe that it's time to think again to

reimagine the shape of progress, because today we have economies that needed to grow whether

they make us thrive. And ideally, we need that in richest countries. These countries that make

their economies thrive whether they grow. We find it as a little flippant word that hide a profound
CAUSES OF ECONOMIC GROWTH 34

shift in mindset. But we believe this is the shift we need to make if we, as humanity are going to

thrive here together in this century 

So, it’s time to question we as where this GDP came from. Well GDP, gross domestic

product, it’s just the total cost of goods and services sold in an economy in a year. It was

originally invented in 1993, but it’s very soon became the overriding goal of policy making. So

much so that even today, in the richest of countries, governments think that the solution to their

economic problems lies in more growth. But we believe, its best told through the 1960 classic by

(W.W. Rostow, The Stages of Economic Growth; A Non-Communists Manifesto). The Rostow

tells us that all economies need to pass through five stages of growth:  

First: Traditional Society - where a nation’s output is limited by its technology, its institutions

and mindset, but then the preconditions for takeoff where we get the beginnings of a banking

industry. And the mechanization of work and the belief that growth is necessary for something

beyond itself like national dignity or a better life for the children then take off, where compound

interest is built into the economy’s institutions and growth becomes the normal condition. Fourth

is the drive to maturity where you can have any industry you want no matter your natural

resource base; and the fifth and final stage, the age of high-mass consumption where people can

buy all the consumer goods they want, like bicycles and sewing machines. All of this is coming

from 1960, you can hear the implicit airplane metaphor in this story, but this plane is like no

other, because this can never be allowed to land. These concepts left us flying into the sunset of

mass consumerism, and the others of these articles were knowing it as they wrote. Ans then the

question beyond, where history offers us only fragments. What to do when the increase in real

income itself losses its charm? 

CAUSES OF ECONOMIC GROWTH 35

So finally, here we are, flying into the sunset of mass consumerism over half a century on, with

economies that have come to expect, demand and depend upon unending growth. Because we are

financially, politically and socially addicted to it. We are financially addicted to growth because

today’s financial system is designed to pursue the highest rate of monetary return, putting

publicly traded companies under constant pressure to deliver growing scale, growing market

share and growing profits. And because banks create money as debt baring interest. We are

politically addicted to growth because politicians want to raise tax revenue without raising taxes

and growing GDP seems a sure way to do that. And no politician wants to lose their pace in the

G-20 family photo. But if their economy stops growing while the rest keep going, they will be

booted out by the next emerging powerhouse. And we are socially addicted to growth, because

thanks to a century of consumer propaganda which fascinatingly created by Edward Bernays the

nephew of the Sigmund Freud. Who realized that his uncle’s psychotherapy could be turned in to

very lucrative retail therapy?  

If we could be convinced to believe that we transform ourselves every time we buy something

more. None of these addictions are insurmountable. But they all deserve far more attention than

they currently get. Global GDP is ten times bigger than it was in 1950. And that increase has

bought prosperity to billions of people. But the global economy has also become incredibly

divisive, with the vast share of returns to wealth now accruing to a fraction of the global one

percent. And the economy has become incredibly degenerative in this delicately balanced planet

on which all our lives depend.  

So, we urgently need financial, political and social innovations that enable us to overcome this

structural dependency on growth. So that we can instead focus on thriving and balance with in

the social and the ecological boundaries of the doughnut. And if the mere idea of boundaries
 CAUSES OF ECONOMIC GROWTH 36

makes you feel, well bounded, think again, because world’s most ingenious people turn

boundaries into source of their creativity.  from Mozart on his five-octave piano, Jimi Hendrix on

his six-string guitar, Serena Williams on her tennis court. It’s the boundaries that unleash our

potentials and the doughnut’s boundaries unleash the potential for humanity to thrive with

boundless creativity, participation, belonging and meaning. It’s going to take all the ingenuity

that we have got to get there. 

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