Long run economic growth and development Essay Example | Topics and Well Written Essays - 2750 words

Long run economic growth and development - Essay Example This paper presents a modern comprehensive analysis of the models of growth, explores main drivers of growth, and discover the mechanism of the influence of the financial liberalization on the long-term economic development of a country. The long term economic growth and development for any country or region in the world is an important subject for all students of sociology, economics and even history since economic development affects all systems that can be found in a political entity. Even in recent years, countries such as Japan that had been destroyed by the ravages of the Second World War and had little to go on in terms of natural resources were able to become economic giants and global economic players. However, such developments could not be emulated by other countries in Latin America and Africa for a multitude of reasons. It seems that labour, economic production output as well as national saving levels are all drivers of economic growth but the overall factor which produces these variables in different quantities is government policy and the economic system that is in place in a given country. A country may follow the practice of becoming more liberal in financial terms and having less stringent controls on the way in which entrepreneurs acquire capital but this does not necessarily mean that economic growth will happen the way the government wants it to happen. Financial liberalization has several advantages and disadvantages which are directly connected with the needs of developing countries.