Economic growth rates vary greatly from country to country L

Economic growth rates vary greatly from country to country. Look at the experiences of the United States, Japan, Ethiopia, and China over the last twenty years.

-Find the average growth rate for each country over that period.

-What are some of the differences between those countries that have led to their different growth rates?

-Identify at least two important and distinct government policies for each country that has helped lead to their unique experience.

Solution

USA 1.6%

Japan 2%

Ethiopia 7%

China 7.7%

The difference is of total population and existing GDP.

In Euthiopia, population is increasing @2.89% while in Japan it i sdecreasing @-0.13%. In USA it is 0.44 while in China it is 0.77. Those countries where population is more, even this increase in real GDP will not result in increase in real per capita.

Secondly this is calculated as a percentage of previous year\'s GDP. hence 2% of USA will actually be much more than 7.7% of China.

USA\'s unique policies:

Exceptional technological growth

Attraction ot best of human capital from all around the world

Japan\'s exceptional policies:

Exceptional technological growth

Curruption free political system

China\'s exceptional policies:

One child norm

growth of SSI in each family

Euthopia\'s Exceptional Policies:

Cultural performances

Export of ethnic items