Economic Growth in Germany and Norway 1986-2010
A comparison of economic growth in Germany and Norway from 1986 – 2010. The impact of four key concepts: comparative advantage, culture, economic freedom and innovation progress.
Matúš Magic
Utrecht University School of Economics
Abstract
This paper explains why Germany and Norway are one of the wealthiest nations in the world by using 4 key concepts – Comparative advantage, Innovation progress, Economic freedom and Culture. These four key concepts show us what has had to be done for such economic success. Despite quite many obstacles and bureaucracy in setting up a business in Germany the entrepreneurs are still willing to start business here. This happens due to tight private property rights. In fact, it is easier to set up business in Norway than in Germany. On the other hand Germany has way much better location for an international trade, which has propelled Germany to become the second largest exporter in the world. However, the international trade in Germany and also in Norway would not be possible without people’s creativity and desire to develop innovative and new technologies. Entrepreneurs are ones who innovate and create new technologies. Innovations and new technologies are the basic elements of economic growth.
Keywords: Germany, Norway, comparative advantage, innovation progress, economic freedom, culture
A comparison of economic growth in Germany and Norway from 1986 – 2010. The impact of four key concepts: comparative advantage, culture, economic freedom and innovation progress.
In today’s world some nations are rich others are not. GDP is a measure of the output of an economy. In fact GDP is also the most common indicator for measuring wealth of nations. GDP is a total amount of goods and services produced in a country in a year. It is obvious that GDP changes over time. Usually GDP increases from one year to another, what indicates that production of goods and services increases. But this might be very
Matúš Magic
Utrecht University School of Economics
Abstract
This paper explains why Germany and Norway are one of the wealthiest nations in the world by using 4 key concepts – Comparative advantage, Innovation progress, Economic freedom and Culture. These four key concepts show us what has had to be done for such economic success. Despite quite many obstacles and bureaucracy in setting up a business in Germany the entrepreneurs are still willing to start business here. This happens due to tight private property rights. In fact, it is easier to set up business in Norway than in Germany. On the other hand Germany has way much better location for an international trade, which has propelled Germany to become the second largest exporter in the world. However, the international trade in Germany and also in Norway would not be possible without people’s creativity and desire to develop innovative and new technologies. Entrepreneurs are ones who innovate and create new technologies. Innovations and new technologies are the basic elements of economic growth.
Keywords: Germany, Norway, comparative advantage, innovation progress, economic freedom, culture
A comparison of economic growth in Germany and Norway from 1986 – 2010. The impact of four key concepts: comparative advantage, culture, economic freedom and innovation progress.
In today’s world some nations are rich others are not. GDP is a measure of the output of an economy. In fact GDP is also the most common indicator for measuring wealth of nations. GDP is a total amount of goods and services produced in a country in a year. It is obvious that GDP changes over time. Usually GDP increases from one year to another, what indicates that production of goods and services increases. But this might be very