Financial Crises and Economic Growth Robert A. Jarrowy August 22‚ 2011 Abstract This paper constructs a simple yet robust model of …nancial crises and economic growth where …nancial markets a¤ect real economic activity. Financial markets increase real output by facilitating investment through the borrowing/lending of capital. However‚ the borrowing of capital is risky due to randomness in the …rms’production. Financial crises occur when output and liquid capital are insu¢ cient to meet required
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1. INTRODUCTION Despite its overwhelming small physical size and lack of natural resources‚ the Singapore economy has experienced rapid economic development since its independence in 1965. Within those few decades‚ Singapore has metamorphosed from a third world country to one of the countries with the highest GDP globally (292% of global average in 20131). GDP grew with an average of 7.7% since independence; and topped 9.2% in the first 25years. Per capita GDP over the same periods grew by 5.4%
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working in the process industry should not have the same subjective attitude about risks in the industry. Generally‚ the people making the risk decisions (e.g.‚ engineers) are usually not the ones faced with the eventual risk (e.g.‚ workers or nearby residents). The companies that had industrial accidents did not go out of business the next day. Therefore‚ the losses must have been considered “tolerable.” This brings back into question: how many accidents might the industry be willing to consider
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POPULATION GROWTH AND ECONOMIC DEVELOPMENT The consequences of population growth on economic development have attracted the attention of economists ever since Adam smith wrote his Wealth of nations. It was only Malthus and Ricardo who created an alarm about the effect of population growth on the economy. Population and Economic Development However‚ the consequences of population growth on the development of LDCs are not the same because the conditions prevailing in these countries are quite different
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Define what is meant by a ‘demographic transition’‚ and examine whether such a transition might have benefits for economic growth in developing countries. The demographic transition model refers to the transition from high birth and death rates to low birth and death rates as a country
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TITLE OF CASE: Stagnation in Growth of Kantha Industry STATEMENT OF PROBLEM: Whether the organization should go out of the village for marketing or organize exhibitions within the village. THE CASE: * 50 year old small scale industry in West Bengal. * Main products: Leather‚ textile and other handworks like Kantha stitch. * Employs 350 workers‚ out of which 72 are women. They work in groups of ten with monthly income of 400-800 Rs. * Products perceived as a luxury goods and not
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Economics 515 AU11 Midterm 1 Review 1. Explain the difference between economic growth and economic development. Define extensive growth. Define intensive growth A) Economic growth is defined by increases in GDP. B) Whereas‚ economic development is more of a vague measure usually incorporating social measures such as literacy rates or life expectancy as a means of measuring a country ’s level of development. C) Extensive Growth‚ is based on the expansion of the quantity
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processing Sector : Growth prospects BACKGROUND While the Indian economy’s growth in the recent years‚ has been propelled by the growth of the service and manufacturing sectors‚ agriculture still plays a significant role by contributing 17% of the GDP and providing employment to 60% of the population. With the increasing focus and investments from the large national and international food and retail companies‚ the sector is bound to grow much faster in the coming years. As this sector has a strong
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Pakistan Economic Growth (2000-2010) A: Agriculture: “Agriculture growth rate over the last seven years: Table 1.1: Agriculture Growth (Percent) Year Agriculture Major Crops Minor Crops Livestock Fishery Forestry 2003‐04 2.4 1.7 3.9 2.9 2.0 ‐3.2 2004‐05 6.5 17.7 1.5 2.3
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ECONOMIC GROWTH and DEVELOPMENT PAPER CONCESSION AND OPERATING COMPANIES of NORTH LUZON EXPRESSWAY (NLEX) A. Significance of Toll Road Industry and the North Luzon Expressway (NLEX) Concession in the Philippine Economy Viewed from the perspective of the total road network of the Philippines having 202‚000 km.‚ the current length of all tolled expressways (about 320 km.) in the country represent a mere 0.16%. At the same time‚ all are operating and located in the Mega Manila area traversing
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