ECONOMIC GROWTH RATE 6
EconomicGrowth Rates
Student’sName
InstitutionAffiliation:
EconomicGrowth Rates
Economicgrowth rate can be considered as the ratio at which a nation GrossDomestic Product (GDP) increases or decreases from one year toanother. On the other hand, GDP is regarded as the total value of allservices and goods that are produced within a nation for a givenperiod. Therefore, the primary purpose of the research paper is tocalculate the average growth rate for the following countries: UnitedStates, Japan, Ethiopia, and China. Additionally, the paper alsoexamines government regulations that have resulted in differenteconomic growth rate in each nation.
TheTable Below Shows the Mean Growth Rate for Each Country for the PastLast 20 Years (%)
|
Country Year |
United States |
Japan |
Ethiopia |
China |
|
|
1997 |
6.05 |
1.73 |
3.54 |
9.20 |
|
|
1998 |
6.11 |
-1.04 |
-4.04 |
7.80 |
|
|
1999 |
6.44 |
0.67 |
6.04 |
7.70 |
|
|
2000 |
5.50 |
2.28 |
5.93 |
8.50 |
|
|
2001 |
2.19 |
-1.68 |
7.42 |
8.30 |
|
|
2002 |
3.76 |
2.19 |
1.63 |
9.10 |
|
|
2003 |
6.42 |
2.9 |
-2.10 |
10.0 |
|
|
2004 |
6.31 |
4.48 |
11.73 |
10.1 |
|
|
2005 |
6.52 |
3.82 |
12.64 |
11.4 |
|
|
2006 |
5.12 |
4.38 |
11.54 |
12.7 |
|
|
2007 |
4.40 |
4.32 |
11.5 |
14.2 |
|
|
2008 |
-0.92 |
1.84 |
10.8 |
9.7 |
|
|
2009 |
0.11 |
-1.70 |
8.8 |
9.4 |
|
|
2010 |
4.56 |
4.37 |
12.4 |
10.6 |
|
|
2011 |
3.64 |
3.09 |
11.2 |
9.5 |
|
|
2012 |
3.24 |
2.45 |
8.6 |
7.9 |
|
|
2013 |
4.31 |
2.48 |
10.6 |
7.8 |
|
|
2014 |
4.07 |
2.69 |
10.3 |
7.3 |
|
|
2015 |
3.00 |
2.63 |
9.6 |
6.9 |
|
|
2016 |
2.81 |
-1.4 |
10.3 |
6.7 |
|
|
Average Growth Rate |
4.18 |
2.00 |
7.92 |
8.77 |
|
Differencebetween Countries That Have Led to heir Different Growth Rates
UnitedStates
Thegrowth rates in the United States have been contributed by numerousfactors, and that has led to different growth rate among suchcountries such as Japan, Ethiopian, and China. For instance,population growth has been slowed down in the US in the recent years.The prime working age is estimated to range between 25-54 years, andthis population has been growing at a rate of 1.3% before therecession. Unfortunately, after the recession, there was a declinethat has considerably affected economic growth rates in the US andthat has contributed in the disparity(Lundvall, 2016).
Japan
Thegrowth rate of Japan has been significantly influenced by thetechnological development since there is an extensive application ofscientific methods and manufacturing techniques. The primary reasonwhy technology has helped to increases economic growth rate of Japanis that limited resources are required for productivity. Therefore,technology has led to rapid growth rate, and that has led todifferent growth rate compared with other countries (Lundvall,2016).
Ethiopia
Theeconomy of Ethiopia comprises of mixed and transition and the publicsector are numerous.. rom the table provided above it can beidentified that there is a different in growth rate among the otherthree nations. Such difference is due to improvements that are madeby the government in the physical infrastructure, public investmentand making the country to be manufacturing hub (Lundvall,2016).
China
Theeconomy of China has been growing at a high rate, and there areseveral factors contributing to this rapid growth. The following aresome of the reasons: maximum supply of labor, the decline inunemployment rate, and the political system has favored economicgrowth there is strong leadership, free market economy, andexport-led growth among others (Lundvall,2016).
GovernmentRegulations for Each Country
UnitedStates
Federalregulations have been formulated and implemented in the United Statesand they have reduced the economic growth of US by approximately 2%.For instance, department of transportation set an enhanced fuelefficiency mandate for cars, and that made cars to be more expensiveas if new tax was imposed. Additionally, some states in US requireanyone doing hair braiding must acquire a license and that canprevent many people from investing in such business(Greiner, Semmler, & Gong, 2016).
Japan
InJapan, environmental regulation has contributed significantly to theeconomic growth since it has helped to protect goods and services.That is because the regulation creates an appropriate mix for bothpublic and private goods. Another regulation that has beenimplemented by Japan is licensing of overseas technologies and thathas promoted growth (Greineret al., 2016).
Ethiopia
Eachand every nation has a regulation that can have an impact on economicgrowth, and Ethiopia is not exceptional. For instance, Ethiopia has apolicy where the central bank has been given powers of financialsupervision. Similarly, the Ethiopian government has liberalizedinterest rates, and these are some of the policies that influencegrowth rate (Greineret al., 2016).
China
Economicgrowth in China has been rapid, and that has been affected by thepolicies that are implemented by the government such as balancedregional economic growth as opposed to rapid economic development.Similarly, another regulation that has helped China to expand hiseconomic growth is lowering enterprise income tax (EIT)(Greiner et al., 2016).
Conclusion
Growthrate varies from one country to another, and that is influenced byvarious strategies that are employed by a nation. Similarly, the kindand nature of policies formulated and implemented by a country cangreatly influence economic growth (Greineret al., 2016).
References
Greiner,A., Semmler, W., & Gong, G. (2016). Theforces of economic growth: a time series perspective.Princeton University Press.
Lundvall,B. Å. (2016). Is there a technological fix for the current globalstagnation?: A response to Daniele Archibugi, Blade Runner economics:Will innovation lead the economic recovery?. ResearchPolicy.
By