The Economic Growth Of A Country 's Gross Domestic Product Essay

773 Words Nov 17th, 2015 4 Pages
Whenever economic growth is used, the implication is always the rate of change a country’s Gross Domestic Product (GDP). What this means is that economic growth is defined by the positive performance in value of inflation-adjusted commodities produced by a particular economy. Over the years, theories on economic growth have been developed. The most recent analyses are based on various factors that explain economic growth and development. These are: substantial scale economies, accumulation of human capital and pervasive externalities .
What is most intriguing about these analyses is just how their results pose very twisted and at times unfathomable overview of economies in ways that lay people would find hard to believe. The study of economic growth involves very many factors and therefore economic projections could give very intriguing results. One of the studies, Larry Summers: In China and India, Beware Asiaphoria analyses the economic situation of Asian countries and gives inferences that translates to a warning against overconfidence based on just the recent growth that has occurred in India and China.
Essentially, I agree with the author’s argument that the recent rapid growth in the economies China and India do not reflect a real GDP growth in the long-run. The fact is that the long-run theories define economic growth based on some strong factors, some of which are not entrenched in the economies of these countries. Precisely, for a country to be said to be in the…

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