Glamor Economics

Chapter 183

Chapter 23 Section 2 Development Witnesses the Rise of Great Powers——Economic Growth

Development is the last word.Since the reform and opening up, my country's economy has continued to develop at a high speed, and the people's material, spiritual and cultural life has also improved significantly.One of the important measurement indicators is the economic growth rate.

Statistics show that the GDP growth rate in the first half of 2008 was about 10.4%, of which it was 10.2% in the second quarter.This means that the economic growth in the first half of 2008 still maintained a relatively fast growth rate.Judging from the data of nearly 30 years of reform and opening up, the average domestic economic growth rate is about 9.7%.Affected by the global economic crisis, the economic growth rate in 2009 decreased. According to the data from the National Bureau of Statistics, my country's economic growth rate was 7.4%.

People have never stopped paying attention to the economic growth rate.According to the state of economic growth, the government will implement different economic policies to maintain steady and rapid economic growth.

Different from the restorative growth of output in economic cycle fluctuations, economic growth is a long-term concept, and its essence is the increase of potential national output or the growth of the production capacity of the economic system.Furthermore, economic growth is also different from economic development.If economic growth is a purely quantitative concept, then economic development is a more complex qualitative concept, which measures the comprehensive political, social and cultural development of a country based on economic growth.In other words, economic growth is a necessary but not sufficient condition for economic development.

The economic growth rate is the comparison of the gross national product of the end period with the gross national product of the base period.The measurement of a country's economic growth rate is usually expressed by economic growth rate.Economic growth rate, also known as economic growth rate, is a dynamic indicator that reflects the degree of change in the level of economic development in a certain period of time, and is also a basic indicator that reflects the vitality of a country's economy.Its size means the speed of economic growth and the length of time it takes to improve people's living standards, so the government and scholars are very concerned about this indicator.

If the values ​​of the variables are all calculated at current prices, the growth rate calculated by the formula is the nominal growth rate. Conversely, if the values ​​of the variables are all calculated at constant prices (the price of a certain period is the base price), the growth rate calculated by the formula is The rate is the real growth rate.When measuring economic growth, the real economic growth rate is generally used.

The calculation of economic growth rate is divided into two types. One is the calculation of annual economic growth rate, which measures the changes in the economy between two years.The calculation of the annual economic growth rate is relatively simple, which is to subtract the economic indicators of the previous year from the economic indicators of the next year (such as GDP or GDP per capita) and then divide the economic indicators of the previous year. Multiply by 2003%. For example, my country’s GDP in 61687.9 was 1990 billion yuan (calculated at 2004 prices, the same below), while the GDP in 67548.2 was 2004 billion yuan. Therefore, the economic growth rate in 0.095 was 9.5, expressed as a percentage. [-]%.

The other is the calculation of the average annual economic growth rate, which measures the average changes in the economy over several years.The calculation of the average annual economic growth rate is more complicated. For the sake of accuracy, we use mathematical symbols and formulas to express it.

Assuming that the value of an economic variable y changes from the initial value y0 to yn after n time periods (such as years, months, days, etc.), the average growth rate of y in each time period should be g= (yn/ y0 -1)/n.

The level of economic growth rate reflects the growth rate of a country or region's economic aggregate in a certain period of time, and is also a sign to measure the growth rate of a country or region's overall economic strength.

There are several factors that determine economic growth:
One is the amount of investment.In general, investment volume is directly proportional to economic growth.

The second is the amount of labor.Under the condition that laborers are compatible with the quantity and structure of means of production, the number of laborers is directly proportional to economic growth.

The third is productivity.Productivity refers to the efficiency of resource utilization (including human, material and financial resources).Increased productivity also contributes directly to economic growth.

The contribution of the three factors to economic growth is different in countries with different degrees of economic development or at different stages.Generally speaking, in a country or stage with a relatively developed economy, the increase in productivity contributes more to economic growth.In a country or stage with a relatively backward economy, the increase in capital input and labor input makes a greater contribution to economic growth.

[links to related words]

Economic development is the process by which a country gets rid of poverty and backwardness and moves toward the modernization of economic and social life.Economic development not only means the expansion of the scale of the national economy, but also means the improvement of the quality of economic and social life.Therefore, economic development involves more than simple economic growth and is broader than economic growth.

Economic growth usually refers to the continuous increase of a country's per capita output (or per capita income) level over a long time span.Gross output is usually measured in terms of gross domestic product (GDP).

(End of this chapter)