...Economic structure and growth When the Europeans set up trading posts around the area of Bangladesh, the British dominated the region. As such, Bangladesh was part of British India until the region was split up into India and Pakistan in 1947. Pakistan was comprised of West Pakistan (current Pakistan) and East Bengal (current Bangladesh. This awkward arrangement of a two-part country with its territorial units 1,600 km apart left the Bengalis marginalized and dissatisfied. In 1971, East Bengal separated from Pakistan and was renamed Bangladesh. Ever since, economic development has been very slow, hampered by political turmoil. It is one of the poorest countries in the world with nominal GDP per head of only USD 1,483 and 36% of the population living below the poverty line of USD 1 per day. The low level of human development is also reflected in the UN’s human development index, which ranks Bangladesh 146th out of 182 countries. Economic development is also hampered by a high vulnerability to inundations. Each year, about a third of the country is flooded during the annual monsoon rains. This severely affects the agricultural sector, washing away crops. While the agricultural sector is not especially important in terms of economic size, since it accounts only for 18% of GDP, it employs 45% of the country’s labor force. The industrial sector contributes 29% to GDP and within this sector the textiles and garment sector is a key growth driver. Unfortunately, the industrial sector...
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...Regime-switching effects of debt on real GDP per capita the case of Latin American and Caribbean countries Tsangyao Chang ⁎, Gengnan Chiang Department of Finance, Feng Chia University, Taichung, Taiwan a r t i c l e i n f o a b s t r a c t In this paper, we try to investigate how the debt and real GDP per capita relationship varies with indebtedness levels and other country characteristics in a balanced panel of 21 developing Latin American and Caribbean countries over the period 1992–2006. The empirical results indicate that there exist two threshold values of 32.88% and 55.89%. The latter is lower than the Maastricht criterion and Stability and Growth Pact of a total external Debt per GDP ratio at 60% in the OECD countries. Both thresholds divide our panel into three regimes. In the middle (stimulus) regime, the Debt per GDP ratio has a positive impact on real GDP per capita, which is consistent with the stimulus view (Eisner, 1984). However, the impact becomes negative and consistent with the crowding-out view (Friedman, 1977, 1985) in the left and right (crowding-out) regimes. Based on our findings, we find no supportive evidence for Ricardian view (Barro, 1989). Therefore, our empirical results have important implications for fiscal policymakers in these Latin American and Caribbean countries. © 2011 Elsevier B.V. All rights reserved. Article history: Accepted 13 June 2011 JEL classification: C4 E6 H3 H6 Keywords: Debt per GDP ratio Real GDP per capita Stimulus view Crowding-out...
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...In normal times, a 3.2 percent GDP growth rate for the United States is good. In the 1980’s the U.S. suffered another severe recession. During that recovery, GDP grew at a 7 to a 9 percent rate for more than one year. A 3.2 percent GDP annual growth rate barely creates enough jobs to keep up with the expanding population. It does nothing for all those who lost their jobs and are looking for work. The U.S. unemployment rate is 9.7 percent and the underemployment rate, a more accurate measure of the true unemployment situation is running at the 16.5% level. What can we learn from the Bureau of Economic Analysis (BEA) report on the GDP growth rate that might be helpful to investors? Jobless growth “Okun’s rule of thumb” points toward an economy that must grow at the 3.0 – 3.5 percent level to maintain current employment levels. If the U.S. economy was operating at full employment status, a 3.0-3.5 percent growth rate works just fine. The problem is the U.S. has 9.7% unemployment and 16.5% underemployment. We will get another look at the employment situation when the Bureau of Labor statistics (BLS) releases the number for April on May 7, 2010. The chart below from the BLS report for March 2010 shows that the total employment for the U.S. is back where it was at the end of the recession that ended in January 2003. If the U.S. GDP only achieves growth at 3.0 to 3.5 percent growth rate, the level of employment will only cover the expansion of the population, leaving 7.5 million...
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...analysis of the data - GDP growth: recessions and cycles. GDP Growth: Recessions and Cycles Figure 1 - US Real GDP 1930 – 2014 with 2009 as the Base Year Source: (Shiller, 2015); (Federal Reserve Bank of St. Louis, 2015) Figure 1 above shows the real Gross Domestic product (GDP) of the United States for the years 1930 to 2014. Real GDP is essential and important as it shows the general soundness of the economy. Thus, when real GDP is high it means other macroeconomic factors such as employment and economic growth are positive and vice versa. This is because real GDP is substantially correlated to these macroeconomic factors. Therefore, the chart above shows that America’s GDP has been growing steadily over the years. This consistent growth has seen to it that America’s real GDP hit a high of 16.16 trillion U.S. dollars up from a low of around 1.06 trillion U.S. dollars in 1930. It is also apparent that the steady growth in the real GDP has led to many significant improvements in the economy and standards of living. Thus, it is evident that the standards of living and other macroeconomic factors are better now than in the mid nineteen hundreds (OpenStax College, 2014). Further, statistical and economic analysis shows that the real GDP of America has an average median and mean of approximately 6.34 and 7.20 trillion dollars respectively (Shiller, 2015). This is caused by the various cyclical changes in the economy. Despite the steady growth in real GDP the U.S. economy has...
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...Research project: The relationship between: the annual growth rate of GDP per capita and the public expenditure in Latin America. F29 F33 F43 O19 My goal for this research project is to examine the relationships that exists in between the annual growth rate per capita and public expenditure in Latin America. What I wanted to see is if a higher growth rate of GDP meant that a higher percentage was spent in the public sector. Data was gathered from the ECLAC, The World Bank and also the International Monetary Fund. Introduction The reason I was very attracted in this research is because as someone born in South America and lately Latin America has been doing better than before, and visiting South America the past year I have seen how infrastructure has improved lately so I was very interested in seeing how big of a role public expenditure plays in countries that are developing. Expenditure on welfare, health and education are an essential part of what governments do to enhance the quality of life of their citizens and the human capital base of their societies. My focus on public and social expenditure in Latin America is mainly guided by the concern of how Governments utilizes existing policies and seeing how these theories and policies have helped increase Latin America’s GDP. In Latin America we find a great variation in social policy regimes; ranging from Uruguay and Argentina, where a large majority of the population is covered by social policy and has decent...
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...Presentation design. T+D, 63(3). Retrieved from Academic Search Premier database. Assignment Type: Individual Project Deliverable Length: Research Paper + at least 15 PowerPoint slides Points Possible: 110 Due Date: 1/20/2013 11:59:59 PM CT You are the newly appointed President of the local Chamber of Commerce. You are making your first presentation to the Chamber and want to make a good first impression. Your presentation will be based on the following topic, purpose, and audience. Topic: Expected U.S. GDP growth rate going forward Audience: Local chamber of commerce Purpose: To give business leaders an idea of what the economy may look like based on recent history and expected future conditions Part I Write a 600-750 word research paper given the topic, purpose, and audience information above. In addressing GDP, consider the following: Trends, forecasts, and statistics How GDP is determined Interpreting GDP Part II Prepare a PowerPoint presentation, consisting of at least 15 slides, to supplement your research paper and be presented to the Chamber of Commerce of an area of your choice. As with any effective presentation, the PowerPoint should be in color, have at least one chart, and clip art on other slides. PowerPoint - Presentation Guidelines The following guidelines for your PowerPoint presentation will be used to grade your work as well: Limit...
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...Research Paper The United States began its roots in domestic trade products in three different centuries. By forming thirteen farming colonies, the economies made a living in which they could survive. Though, in 1776 the colonies felt the need to join together to form the United States and thus became an industrialized world by manufacturing coal, iron, and oil (Chitwood, 1961). Over the centuries the United States has been able to maintain high wages for jobs because of their assurance materials and social principals. This paper will entail some trends, forecasts, and statistics for the expected growth rate of the United States’ gross domestic products (GDP). It will detail how the GDP is determined and how it can be interpreted. Every month the Bureau of Economic Analysis (BEA) updates the trend, forecasts, and statistics for the GDP. It announces the growth of the GDP and depicts how quickly the economy has flourished from the last quarter. The BEA suggests that the quarterly yield should be 2-3% because this steady trend will assist the economy in job production without causing inflation (Chitwood, 1961). The only time the BEA would suggest a higher quarterly yield would be when there is a recession because it will keep the economy’s unemployment rate to a minimum. Trends portray the magnitude in which a country will survive depressions and recessions. Every...
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...Shylinda Graystreete Dr.Davis - Unit 2 Individual Project 29 July 2012 Expected U.S. GDP growth rate going forward The Gross Domestic Product (GDP) is a major factor that shows how the economy will either get better or worse. The GDP is how we can measure the spending and production of the U.S. The GDP is a total measurement usually calculated quarterly (Russell, 2012). These calculations show change to the economy even if products and services increased or decreased, According to Russell, (2012) regardless of changes in the purchasing power of the currency. There are many things that affect our economy such as international debt, increase in taxes, the effect to interest rates, the rise in unemployment, the poor failing real estate market, lack of investing, lack of spending by consumers, which is directly affected because of lack of employment. Some believe that the economy will eventually recover. This may be a slow process, however. Those in the business world believe this will most likely put inflation at a standstill. (TBQ, 2012). It is predicted that the GDP will continue to go up and down for years to come as the US tries to recover from the economic slump that it has found itself in unless congress and the president can pull us out. There are three different methods of determining GDP. The first one is estimating each industry’s gross output or production (Wells and Krugman, 2009). Second would be to measure income (Wells et al). Third would be expenditures...
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...become of the United States if President Obama cannot get us out of the recession? EXPECTED U.S. GDP GROWTH RATE GOING FORWARD The gross domestic product (GDP) growth rate is an important indicator of the U.S. economic health. The slope of the yield curve – the spread between long and short - term interest rates – is a good predictor of future economic activity. As these slopes shift, you will get periods of high and low growth in GDP. There are three different methods of determining GDP. The first one is estimating each industry’s gross output and subtracts intermediate inputs from other industries to derive each industry’s residual value-added, which is sometimes called the production approach (Wells and Krugman, 2009). The second method is the income approach, which measures the income earned by the different factors of production (Wells et al). The third method is the final expenditures approach, which shows what is happening across different types of spending throughout the economy, usually done annually (Wells et al). The calculation is GDP = C (Consumption) + I (Investment) + G (Government production) + X (Exports) – I (Imports) (Wells et al). The three methods of measuring the GDP must carry out the same result, in other words the total value of the production, the total value of the incomes and total value of the expenditure must be equal. According to the Bureau of Economic...
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...Population Growth, Real GDP Per Capita and the Solow Model For this assignment, twenty developing countries with high population growth in the 1960s or at the beginning of the current century are selected, along with another twenty developing countries with lower population growth in recent years. Table 1 and Table 2 shows the selected countries’ real GDP per capita, as well as their population growth rates between 1960-2012, whereby the differences are computed by averaging out the population growth rates on a ten-year basis, except for the last fraction which is on a 13-year basis, that is, between year 2000 to 2012. For instance, the population in Romania in 1960 and 1969 is 18,406,900 and 20,009,140. The growth rate is calculated by the formula: Population Growth Rate= V Present-V PastV PastN ×100 where V Present is present or future value, V Past is past or present value and N equivalent to the number of years (Parker, 2002). Hence the growth rate of 1960-1969 is calculated as follows: Population Growth Rate 1960-1969= 20,009,140-18,406,900V Past10 = 0.87% The calculation proceeds with the 1970-1979, 1980-1989, 1990-1999, and lastly, 2000-2012 population growth rates, and final figure taken is the average of these 5 rates. Table 1 – Population Growth Rate (1960-2012) and Real GDP Per Capita in 2012 (USD) of 20 Developing Countries with high population growth rates in the early century (Source adopted from IndexMundi, 2013 Table 2 – Population Growth Rate (1960-2012)...
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...Glenda Stahl 03/13/16 Week Eight Homework What is economic growth and how do we use GDP to measure an economy? Economic growth is measured by the value of all the products manufactured and sold in a country over the course of one year along with everything people do and get paid for. There are four categories that create GDP: consumers, investments, governmental spending and other companies that buy from another country. GDP measures income, but not equality, it measures growth, but not destruction, and it ignores values like social cohesion and the environment. However, there are countries that are trying to include social cohesion and the environment because it does have an effect on economic growth. What cause or contribute to the growth of an economy? Economic growth is measured by real GDP growth where the ability of a country to increase the value if it’s production of goods and services after removing the effects of inflation. When people earn more money they buy more products which results in economic growth. Economic growth is important for a country because it leads to a better standard of living for all its citizens, even the poor. Countries with a good economy can offer better health care services, safer working conditions and spend more on insuring a cleaner environment. Also, economic growth allows countries to reinvest money into areas that will promote future growth such as education, technology, capital and infrastructure. What is the rule of 70?...
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...Learaye Macroeconomics Economic Growth & GDP “Gross domestic product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of neither public debate not the integrity of our public officials. It measures neither our courage nor our wisdom, not the devotion to our country. It measures everything, in short, except that which makes life worthwhile and it can tell us everything except why we are proud to be Americans.” Quote by Robert F. Kennedy GDP GDP is not a measurement of overall prosperity of a nation and it fails to measure some aspects of a national economy. As you can gain from the quote by Robert F. Kennedy, we do not use this to measure those things which “make life worthwhile” but rather use it to judge one country from another. It helps to evaluate how societies function in different economic environments and how to use this measurement to improve conditions in a society or to keep things flowing for a healthy economy. Gross Domestic Product (GDP) is defined as the total market value of final goods and services produced by factors of production. GDP also measures markets of what is being produced or whether problems are occurring. There is a relationship presented with a circular flow model that gives us a picture of the flow of production being produced in an economy. The circular flow model demonstrations...
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...MICHELLE SUMMERS AMERICAN INTERCONTINENTAL UNIVERSITY CRIMINAL CAUSATION/INDIVIDUAL #4 MARCH 4, 2012 ABSTRACT In this presentation you will find out how much the crime rate has changed and how other countries compare. We are the highest in the rate of incarcerations and murders. The presentation should start out with some statistics from years ago. Show that with the increase in population and show how much the crime rate has went up since then. In doing some research I found a site that had statistics from 1960-2010 and you can see the increase from year to year and some decreased in certain years too. I understand the more people that live here, the more things are going to happen. It doesn’t help that the past few years have been tarnished by the recession and people are hurting. In 1960 In 2010 * Population 179,323,175 308,745,538 * Violent Crimes 288,460 1,246,248 * Murders 9,110 14,748 * Rapes 17,190 84,767 * Total of all crimes violent and non-violent 3,384,200 10,329,135 I would start out my PowerPoint presentation with telling what crimes are done. Where they are happening, how many, and how the United States compares to the rest of the world. It would be nice to see if there is any countries that compare to us at all and how they handle it. I would include the economic standings here and compare them to the other countries. This way we could see how that compares and see if this could...
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...Bangladesh GDP Growth Rate The Gross Domestic Product (GDP) in Bangladesh expanded 6.30 percent in 2012 from the previous year. GDP Growth Rate in Bangladesh is reported by the Bangladesh Bank. Historically, from 1994 until 2012, Bangladesh GDP Growth Rate averaged 5.58 Percent reaching an all time high of 6.70 Percent in June of 2011 and a record low of 4.08 Percent in June of 1994. Bangladesh is considered as a developing economy. Yet, almost one-third of Bangladesh’s 150m people live in extreme poverty. In the last decade, the country has recorded GDP growth rates above 5 percent due to development of microcredit and garment industry. Although three fifths of Bangladeshis are employed in the agriculture sector, three quarters of exports revenues come from producing ready-made garments. The biggest obstacles to sustainable development in Bangladesh are overpopulation, poor infrastructure, corruption, political instability and a slow implementation of economic reforms. This page includes a chart with historical data for Bangladesh GDP Growth Rate. Bangladesh Consumer Price Index (CPI) Consumer Price Index (CPI) in Bangladesh increased to 176.38 Index Points in August of 2012 from 173.18 Index Points in July of 2012. Consumer Price Index (CPI) in Bangladesh is reported by the . Historically, from 1993 until 2012, Bangladesh Consumer Price Index (CPI) averaged 96.51 Index Points reaching an all time high of 176.38 Index Points in August of 2012 and a record low of 51.99 Index...
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...Joanna Abele American Intercontinental University Unit 1 Individual Project BUSN300-E-1205B-02 Lowe Division Capstone 1/11/2013 Abstract This paper talks about global warming and what is really to blame. In this paper the author will give their opinion on what is to blame and why they feel this way. And if global warming is really going on or if it is just people looking to try and justify their opinions. * Climate changes * Too hot * Too cold * The sea animals * Animal population on the rise * Animal population on the down fall * Caused by humans * Why do you think humans caused global warming * why do you think it is not caused by humans * Is the theory scientifically credible * Does it pose a serious environmental and health risks Global Warming: Fact or Fiction What do we know about Global Warming? Is it man made, or is it due to the way the earth shifts naturally that causes it? Some experts say the extreme weather changes are due to the increase in the average global temperatures. Some also say the natural human activities might be one of the contributing factors for the global warming, causing an increase in the average temperatures. Let us first look at what the earth is doing in order to cause the global warming situation. Ocean heat is rising; the temperature over the oceans is also rising. Now I could say that it is caused by us taking some of the fresh oxygen out of the air by cutting the...
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