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JOANNE OOI JHO YEN CEB140078

LAU SZE CHING CEB140054

YIP SIN YEE CEB140141

LECTURER: ENCIK

MOHAMED HISHAM BIN

HANIFA

CBEB 1108

MANAGERIAL ECONOMICS

CHAPTER 6: ECONOMICS GROWTH (THEORIES)



JOANNE OOICFO of

International

MonetaryFund

Organization

YIP SIN YEEChief

ExecutiveOcer!

"he Edge

#A$ S%EC&IN'(e)uty

'overnor!MonetaryAutority ofSinga)ore



Discuss the ecoo!ic"#o$th theo#ies% &hich o'

the! (o )ou !ost *"#ee$ith+ Is ecoo!ic "#o$th

*,$*)s "oo(+



Classical GrowthTheory

• The "#o$th o' #e*, GD- .e# .e#so is

te!.o#*#) %

• /susistece ,ee,2

• e3ui,i#iu! ,ee,

•

Cot*i .o.u,*tio "#o$th

Issues:

1% M*,thusi* theo#): .o.u,*tio "#o$th is

.*#t o' the .#o,e!%

4% Resou#ce ,i!ite(



% NEOCLASSICAL GRO&TH ECONOMICS% Neoc,*ssic*, ecoo!ics (ee,o.e( '#o! the c,*ssic*, ecoo!ics

(o!i*t i the 18th *( 15th cetu#ies%

- $i,, e *cco!.,ishe( $ith the .#o.e# *!outs o' the th#ee

(#ii" 'o#ces: ,*o#6 c*.it*, *( techo,o")%

- &he * e$ techo,o") eco!es **i,*,e6 the ,*o# *( c*.it*,

ee( to e *(7uste( to !*it*i "#o$th e3ui,i#iu!%

- Techo,o"ic*, ch*"e i',ueces the ecoo!ic "#o$th #*te ut ot

ice e#s*%

- the st*(*#( o' ,ii" $i,, *,, eco!e e3u*,%

- *(*ces i he*,th c*#e th*t ete( ,ies%



ISSUES:All economies !"e !ccess #o #e s!me #ecnolo$ies

!n% c!&i#!l is '(ee #o (o!m #e $lo)e* see+in$ #e

i$es# !"!il!)le (e!l in#e(es# (!#e,

-e #eo(. !($/es #!# economic $(o# ill no#

con#in/e /nless #e(e con#in/es #o )e !%"!nces in

#ecnolo$.,



New Growth Theory

* '(P )er )er+on ,ill -ecau+e of )ro.t

)ur+uit/no,ledge * increa+ing return+ * non0rivalgood &igher +tandard of livingInnovation 1uantity 21uality of .nal good+ Arti.cial re+ource -a+e 0 +carcityInve+t3ent in &u3an Ca)ital! 42(! Education Issues :-'overn3ent clo+e door )olicy * 42(! education !

innovation Innovation * negative +ocial i3)actCo)yright Infringe3ent&ard to 3ea+ure Innovation5/no,ledge *#iteracy4ate Index



&hich o' the! (o )ou !ost *"#ee $ith+ Ne$ G#o$th Theo#)

Ne G(o# -eo(. em&!si2es #!# economic $(o# (es/l#s '(om #e

inc(e!sin$ (e#/(ns !ssoci!#e% i# ne +nole%$e,

• Ko$,e("e (#ies "#o$th%

o I%e!s c!n )e in'ini#el. s!(e% !n% (e/se%* /m!n c!n !cc/m/l!#e #em

i#o/# limi#,

o -e #eo(. el&s /s m!+e sense o' #e on$oin$ si'# '(om ! (eso/(ce

)!se% econom. #o ! +nole%$e)!se% econom.,

o

Ne +nole%$e !(e c(i#ic!l #o s!&in$ #e $(o# o' n!#ions*comm/ni#ies !n% in%i"i%/!l 'i(ms,



o S.eci*, Ch*#*cte#istics o' 9o$,e("e 3nole%$e &l!.s !n im&o(#!n# (ole in m!+in$ $(o# &ossi)le,

3nole%$e is c(i#ic!l #o economic $(o#, 3nole%$e is s/)ec# #o

inc(e!sin$ (e#/(ns )ec!/se i# is ! non(i"!l $oo%,

-e. !(e no# s/)ec# #o !# economis#s c!ll %iminisin$ (e#/(ns,6

As e !cc/m/l!#e mo(e !n% mo(e i%e!s* +nole%$e !)o/# o #e o(l%

o(+s* !n% o #o e#(!c# $(e!#e( /se o/# o' #e 'ini#e se# o' (eso/(ces

i# ic #e o(l% is en%oe%* e en!)le #e econom. #o %e"elo&

'/(#e(,



Is economic growthalways good?

Yes, if it is in accordance to NewGrowth Theory which emphasize oninnoation and creatiity to !oost theeconomy proided without harming

the enironment or a"ecting thesta#eholders$

% central proposition of New Growth

theory is that, unli#e land andcapital, innoation is not su!&ect todiminishing returns$



"hat i+ all fro3u+6

"han7 You6

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