1 Answer - Sort by: Date | Rating
Increasing the growth of output in open economies involves more than just waving a magic wand that will attract investors or savers. The saving and investing climate involves a wide array of policies, including a stable macroeconomic environment; secure property rights, and above all a predictable and attractive climate for investment. We view some of the ways that open economies can improve their rates by using the global marketplace to their best advantage.
Over the long run the single most important way of increasing per capita output and living standards is to ensure that the country adopts best practice techniques in its production processes. It does little good to have a high investment rate if the investments are in the wrong technology.
This point was abundantly shown in the last years of Soviet central planning, when the investment rate was extremely high but much investment was poorly designed, left unfinished or made in unproductive sectors. Moreover, individual small countries do not need to start from scratch in designing their own turbines, machinery, computers and management systems.
Over the long run the single most important way of increasing per capita output and living standards is to ensure that the country adopts best practice techniques in its production processes. It does little good to have a high investment rate if the investments are in the wrong technology.
This point was abundantly shown in the last years of Soviet central planning, when the investment rate was extremely high but much investment was poorly designed, left unfinished or made in unproductive sectors. Moreover, individual small countries do not need to start from scratch in designing their own turbines, machinery, computers and management systems.
0
0
- What Is Macroeconomic Activity Diagram?
- What Is The Definition Of Wealth According To Adam Smith?
- List Five Differences Between Economics As A Social Science And Economics As A Physical Science?
- Explain The Importance Of Food Industry For Economy Of Pakistan?
- Government Plays Important Roles As An Entrepreneur, Regulator, Planner And Promoter. Explain Its Impact On Firms In Malaysia?
- 2. Government Plays Important Roles As An Entrepreneur, Regulator, Planner And Promoter. Explain Its Impact On Firms In Malaysia?
- How Did France Set Up Trade?
- What Is The Full Employment?
- What Are The Basic Problems Of Command And Mixed Economics?
- When Was Stagflation Appered?
- How Does Inflation Affect Borrowers And Savers?
- What Are The Difficulties That Economists Encounter While Carrying Out National Income?
- What Is Price Effect On Consumer Equilibrium's In Case When Good Is Normal?
- Why The Short Run Total Product Curve Is S Shaped?
- What R The Factor Of Demand Curve?
- What Is Normative Economics Give An Example?
- Which Quantity Is Measured In Seconds?
- How Economy Affects Your Decisions?
- What Is The Free Enterprise System?
- What Was The French Economy Like In The 1800's?
- What Dose Command Economy Mean?
- Where Do Businessmen Work?
- How Do I Respond To Me Too?
- Describe The Three Factors Of Persuasion?
- What Are The Characteristics,advantages & Disadvantage Of Market,mixed & Centrally Planned Economies?
- How A Country Gets Economic Growth In The Open Economy In Long Run?
- What Is An Economic Stability And Growth In Mixed Economy?
- How Can I Promote The Growth Of My Hair?
- Will Green Jobs Promote Employment Growth?
- Will Mixing Vit E And Pure Aloe Vera Together With Water Promote Hair Growth?
- What Are The Different Theories Of Economic Growth?
- What Are The Different Assessments About Economic Growth?
- How Can Economic Growth Be Increased?
- Why Is Economic Growth Important?

New Comment - Comments are editable for 5 min.