Development Economics: Nature and sources of economic growth Growth as an expansion of national productive capacity "»economic growth: increasing ability of nation to satisfy material wants of its people over period of time. *Economic growth involves expansion of national productive capacity. "»Production possibilities curve: representation of nation's productive capacity at given point in time. 1.All resources fully employed, fixed in supply, and easily transferable 2.technology is constant 3.only two goods are produced. AB = Potential growth …showed first 75 words of 2134 total…

…showed last 75 words of 2134 total…Governments should open stockmarkets to foreign investors to increase liquidity *Ross Levine & Ms Zervos: market liquidity closely related to economic growth *Had Mexico's stockmarket been as liquid as Malaysia's in 1976, its economy would have enjoyed 0.4% a year faster growth per capita until 1993. *Development and expansion of new and existing markets "»Increasing participation in international trade: specialisation, economies of scale *Resources & technology can be imported - provides capital in particular for Australia and LDCs.