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Impact Of Economic Factors On The Economic Growth Of New Zealand And Australia
Impact Of Economic Factors On The Economic Growth Of New Zealand And Australia.
Name
Institution
Introduction
Economic growth is the process of increasing national income, primarily through macroeconomic indicators such as the Gross domestic product through per capita income. According to the theory of modern economic growth, political, cultural, and modern factors influence the development of economic growth ina country. These factors are fixed and cannot be changed hence used in the study of economic factors. It is appropriate to supervise the influence of the various geographical, political, and cultural factors on the economy to evaluate the extent of the impact on economic variables. In the report, the macroeconomic indicators of New Zealand will be analyzed. Australia and Ne Zealand have a similar geographic location, political and cultural factors, which made it an appropriate nation for analysis and contrast based on the same grounds. Therefore, a comparison of the two countries will provide an analysis of the impact of economic factors on economic growth.
Empirical Analysis
Australia’s and New Zealand measure their economic Growth through GDP, which shows the market value of final products in an economy over some time. The gross domestic product changes due to the influences that develop in the economy. The international monetary fund bases GDP on the per capita income level and diversification of export and the degree of incorporation into the world’s financial system. According to the national bank, countries’ gross income determines the growth structure of a nation. The level of the revenue leads to the bank classifies countries into low, lower-middle, upper-middle, and high-income levels. Infrastructure also contributes to income. For example, Australia’s infrastructure is considered a critical factor for economic growth and development (Baker, 2015). Strategic infrastructure such as airports is essential in increasing GDP due to its feature of connecting countries. In the two countries, trade is among the main activities affecting national income. Also, financial flows play an essential role in enhancing economic growth.
According to data from the world bank, the gross domestic product for the last 20 years has been fluctuating over time. In comparison to the two countries, consideration will be made on a substantial money percentage in GDP, Foreign development investment net outflows, GDP per capita growth, and GDP growth. The comparison is shown in the graphs below:
3200400126365
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-590549126365
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The figures for broad money show the measure of cash in circulation in an economy. For New Zealand, some years did not record the amount of money hence decreasing to zero and rising again.
3009900104775
0
-609600104775
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Cointegration and error correction methods, which use the balance of forces to produce long-term levels in the variables. This relationship is caused by other factors that influence the gross domestic product and also the national economic growth. Through the methods, the relationship between the gross domestic product and the factors influencing the increase and decrease of the revenue can be determined. The causal relationship is essential to identify the influencers of economic growth. In Australia, tourism, airports, and air transport contribute a lot to the level of gross domestic product attained by a nation (Baker, 2015). Airports provide directly through the creation of employment and chain of suppliers. The income and employment generated by the airport act as a driver of productivity growth and encourages new investments.
Such infrastructures enhance trade, both internal and external. These activities lead to foreign direct investments, which also contribute to the increase in the gross immediate product in a nation. This occurs in both New Zealand and Australia. Financial development and trade in exports and imports in Australia have a high contribution to the revenues of the country hence increased economic Growth (Rahman et al., 2015). The trades lead to foreign direct investments, which is an income to the country. The comparison of the foreign direct investment of the two countries is represented in the graphs below:
41910079375
00
The economic growth of Australia and New Zealand represented by their gross domestic product have shown a reduction in the local product within the last year. However, the flow of the income of the two countries has almost the same stream of revenue. The disparity is very low. In the growth of broad money, Australia is showing a higher amount of money in circulation. This indicates that the economic activities in the country are more compared to New Zealand. Australia identifies the causality of economic growth to energy consumption (Rahman & Mamun, 2016). Energy consumption tends to contribute more to the Gross product of the country since it is one of the main activities in the country. In research to find the correlation between education and economic growth (Khan & Bashar, 2015). In New Zealand, the causal relationship for education to economic growth is negative. Therefore, gross domestic product is influenced by investment trade.
The contribution of foreign direct investment contributes directly to the growth of the economy. Also, a positive relationship is reported between financial savings and the growth of the economy. This relationship is because increased savings stimulate economic growth through an increase in investment (Li, 2019). The increased investment is also contributing to the growth of the economy. Natural resource-abundant economies attract investors who contribute to the per capita income in both countries. More investments raise economic growth due to increased revenues in the country (Anderson, 2017). The data gathered show that there are fewer investments in the states; hence the GDP is not rising at higher rates. Also, the manufacturing industries and foreign trade that involve exports and imports are high-income activities that enhance high contributions to the gross domestic product of a country.
Conclusion
Economic growth is increased by the amount of income received by a country. The causal factors that influence economic growth are such as gross economic growth, investments, per capita income, and exports and imports. Australia and New Zealand’s economic growth is reliant on the commercial activities of the country, such as investments. The GDP of the two countries is almost the same due to the political, cultural, and geographical factors that are similar. Therefore, if investments in the countries fail to increase, the revenues of the country reduce, which affects economic growth. Also, to improve future incomes, other economic activities such as employment opportunities need to be created to increase per capita revenue hence leading to a rise in economic growth.
References
Park, J. (2013). Korea and Australia in the New Asian Century. International Journal of Korean Unification Studies, 22(1), 139–158.
Baker, D., Merkert, R., & Kamruzzaman. (2015). Regional aviation and economic growth : cointegration and causality analysis in Australia. Journal of Transport Geography, 43, 140–150.
Rahman, M. M., & Mamun, S. A. K. (2016). Energy use, international trade and economic growth nexus in Australia: New evidence from an extended growth model. Renewable & Sustainable Energy Reviews, 64, 806–816.
Rahman, M. M., Shahbaz, M., & Farooq, A. (2015). Financial Development, International Trade, and Economic Growth in Australia: New Evidence From Multivariate Framework Analysis. Journal of Asia-Pacific Business, 16(1), 21–43.
Anderson, K. (2017). Sectoral Trends and Shocks in Australia’s Economic Growth. Australian Economic History Review, 57(1), 2–21.
Sheng, Y., Drysdale, P., & Chen, C. (2017). ECONOMIC GROWTH IN CHINA AND ITS POTENTIAL IMPACT ON AUSTRALIA–CHINA BILATERAL TRADE: A PROJECTION FOR 2025 BASED ON THE CGE ANALYSIS. The Singapore Economic Review, 64(4), 1745005.
Li, C. (2019). Analysis of domestic saving and economic growth in Australia and Korea. The Frontiers of Society, Science and Technology, 1(4).
Khan, H., & Bashar, O. K. M. R. (2015). Social expenditure and economic growth: Evidence from Australia and New Zealand using cointegration and causality tests. Journal of Developing Areas, 49(4), 285–300.
Impact Of Economic Factors On The Economic Growth Of New Zealand And Australia.
Impact Of Economic Factors On The Economic Growth Of New Zealand And Australia.
Name
Institution
Introduction
Economic growth is the process of increasing national income, primarily through macroeconomic indicators such as the Gross domestic product through per capita income. According to the theory of modern economic growth, political, cultural, and modern factors influence the development of economic growth in a country. These factors are fixed and cannot be changed hence used in the study of economic factors. It is suitable to administer the influence of the various political, geographical, and cultural factors on the economy to evaluate the extent of the impact on economic variables (Li, 2019). In the report, the macroeconomic indicators of New Zealand will be analyzed. Australia and New Zealand have a similar geographic location, political and cultural factors, which made it an appropriate nation for analysis and contrast based on the same grounds. Therefore, a comparison of the two countries will provide an analysis of the impact of economic factors on economic growth.
Empirical Analysis
Australia’s and New Zealand measure their economic Growth through GDP, which shows the market value of final products in an economy over some time. The gross domestic product changes due to the influences that develop in the economy. The international monetary fund bases GDP on the per capita income level and diversification of export and the degree of incorporation into the world’s financial system. According to the national bank, countries’ gross income determines the growth structure of a nation. The level of the revenue leads to the bank classifies countries into low, lower-middle, upper-middle, and high-income levels (Li, 2019). Infrastructure also contributes to income. For example, Australia’s infrastructure is considered a critical factor for economic growth and development (Baker, 2015). Strategic infrastructure such as airports is essential in increasing GDP due to its feature of connecting countries. In the two countries, trade is among the main activities affecting national income. Also, financial flows play an essential role in enhancing economic growth.
According to data from the world bank, the gross domestic product for the last 20 years has been fluctuating over time. In comparison to the two countries, consideration will be made on a substantial money percentage in GDP, Foreign development investment net outflows, GDP per capita growth, and GDP growth. The comparison is shown in the graphs below:
3200400126365
00
-590549126365
00
The figures for broad money show the measure of cash in circulation in an economy. For New Zealand, some years did not record the amount of money hence decreasing to zero and rising again.
-800100104775
00
3009900104775
00
Cointegration and error correction methods, which use the balance of forces to produce long-term levels in the variables. This relationship is caused by other factors that influence the gross domestic product and also the national economic growth. Through the methods, the relationship between the gross domestic product and the factors influencing the increase and decrease of the revenue can be determined. The causal relationship is essential to identify the influencers of economic growth. In Australia, tourism, airports, and air transport contribute a lot to the level of gross domestic product attained by a nation (Baker, 2015). Airports provide directly through the creation of employment and chain of suppliers. The income and employment generated by the airport act as a driver of productivity growth and encourages new investments.
Such infrastructures enhance trade, both internal and external. These activities lead to foreign direct investments, which also contribute to the increase in the gross immediate product in a nation. This occurs in both New Zealand and Australia. Financial development and trade in exports and imports in Australia have a high contribution to the revenues of the country hence increased economic Growth (Rahman et al., 2015). The trades lead to foreign direct investments, which is an income to the country. The comparison of the foreign direct investment of the two countries is represented in the graphs below:
41910079375
00
The economic growth of Australia and New Zealand represented by their gross domestic product have shown a reduction in the local product within the last year. However, the flow of the income of the two countries has almost the same stream of revenue. The disparity is very low. In the growth of broad money, Australia is showing a higher amount of money in circulation. This indicates that the economic activities in the country are more compared to New Zealand. Australia identifies the causality of economic growth to energy consumption (Rahman & Mamun, 2016). Energy consumption tends to contribute more to the Gross product of the country since it is one of the main activities in the country. In research to find the correlation between education and economic growth (Khan & Bashar, 2015). In New Zealand, the causal relationship for education to economic growth is negative. Therefore, gross domestic product is influenced by investment trade.
The contribution of foreign direct investment is very important in growth of the economy. Also, financial savings and the growth of the economy has a positive relation. This relationship is because increased savings stimulate economic growth through an increase in investment (Li, 2019). The increased investment is also contributing to the growth of the economy. Natural resource-abundant economies attract investors who contribute to the per capita income in both countries. More investments raise economic growth due to increased revenues in the country (Anderson, 2017). The data gathered show that there are fewer investments in the states; hence the GDP is not rising at higher rates. Also, the manufacturing industries and foreign trade that involve exports and imports are high-income activities that enhance high contributions to the gross domestic product of a country.
Conclusion
Economic growth is increased by the amount of income received by a country. The causal factors that influence economic growth are such as gross economic growth, investments, per capita income, and exports and imports. Australia and New Zealand’s economic growth is reliant on the commercial activities of the country, such as investments (Li, 2019). The GDP of the two countries is almost the same due to the political, cultural, and geographical factors that are similar. Therefore, if investments in the countries fail to increase, the revenues of the country reduce, which affects economic growth. Also, to improve future incomes, other economic activities such as employment opportunities need to be created to increase per capita revenue hence leading to a rise in economic growth.
References
Park, J. (2013). Korea and Australia in the New Asian Century. International Journal of Korean Unification Studies, 22(1), 139–158.
Baker, D., Merkert, R., & Kamruzzaman. (2015). Regional aviation and economic growth : cointegration and causality analysis in Australia. Journal of Transport Geography, 43, 140–150.
Rahman, M. M., & Mamun, S. A. K. (2016). Energy use, international trade and economic growth nexus in Australia: New evidence from an extended growth model. Renewable & Sustainable Energy Reviews, 64, 806–816.
Rahman, M. M., Shahbaz, M., & Farooq, A. (2015). Financial Development, International Trade, and Economic Growth in Australia: New Evidence From Multivariate Framework Analysis. Journal of Asia-Pacific Business, 16(1), 21–43.
Anderson, K. (2017). Sectoral Trends and Shocks in Australia’s Economic Growth. Australian Economic History Review, 57(1), 2–21.
Sheng, Y., Drysdale, P., & Chen, C. (2017). ECONOMIC GROWTH IN CHINA AND ITS POTENTIAL IMPACT ON AUSTRALIA–CHINA BILATERAL TRADE: A PROJECTION FOR 2025 BASED ON THE CGE ANALYSIS. The Singapore Economic Review, 64(4), 1745005.
Li, C. (2019). Analysis of domestic saving and economic growth in Australia and Korea. The Frontiers of Society, Science and Technology, 1(4).
Khan, H., & Bashar, O. K. M. R. (2015). Social expenditure and economic growth: Evidence from Australia and New Zealand using cointegration and causality tests. Journal of Developing Areas, 49(4), 285–300.
Feudalism in France
Feudalism in France
Student’s name
Institutional affiliation
Feudalism flourished between the 9th-15th centuries in medieval Europe. Feudalism was based on a convention of legal and military customs. Generally speaking, it was a system of organizing the society around relationships developed from owning the land (Bayar, 2017). All the land belonged to the monarchy and was given out to the nobles who in turn gave out the land to vassals. The fief was at the pivot of the feudalism system. Vassals obliged their services in a ceremony called the homage to the monarch in exchange for the fief and protection. Feudalism developed as a result of the decentralization of the Carolingian empire. Mounted troops were allocated land and over time they secured a system of hereditary rule. The soldiers exerted components of social, political, judicial, and economic dominance over their land. Feudalism was a repressive system that only stimulated the progress of the nobles while the peasants’ turmoil at their mercy.
Feudalism hindered development in France. The peasants essentially paid every day to live. The monarch exerted massive taxes to the peasants while the nobles paid little yet they were the ones who made huge profits from their various businesses and land. The peasants had no rights of their own except to service their masters who enjoyed luxurious lifestyles. This was the source of hatred which would in turn result in the French revolution in the future centuries. The serfs as they were commonly known received no economic incentives neither good wages. The feudal system promoted low-level farming hence there was no surplus to promote trading. Free trading and globalization were minimal hence peasants were prone to starvation. Small scale farming resulted in low development. Furthermore, the situation was exacerbated by high taxes to peasants (Cheyette, 2016). In France, feudalism led to economic instability which cost her a number of colonies. Feudalism was essentially an oppressive regime to its core. The concepts of feudalism spread to neighboring countries such as England and Germany.
On the other hand, feudalism had benefits. Feudalism benefited people at the top and also at the bottom of the hierarchy. Feudalism was quite flexible creating a system where power and decision making was delocalized. The system permitted people to decide if they wanted to fight for the monarch. It created stability and a sense of social security. The system was based on an obligation of the mighty to the weak in that they were compelled to protect them (Cheyette, 2016). It was the most common system at the time and therefore it gave everyone a chance to develop. Though most critics say it gave the 90% of the French a chance to survive in an oppressive system.
The French Revolution abolished the feudal system. The revolution occurred between 1789-1799 and was orchestrated by the national constituent assembly that unanimously abolished the feudal system. The main motivator for the change was the oppression of the majority peasant population. The peasants had been seeing how the minor monarch misused and oppressed them over the centuries and grew inpatient which led to the development of the national assembly (Blaufarb, 2018). The constituents believed that the assembly represented the cries and pleas of the people. As a result, the assembly abolished the seigneurial rights of the nobles and the tithes of the Roman Catholic clergy, favoritism in taxation, pluralities, and unwarranted pensions. The major losers were the clergy and the nobles who had supported the monarch from the beginning.
Feudalism was an oppressive system that only promoted the growth and development of the nobles and the monarch. When the system was abolished, the resulting system adopted some of the strengths of the system while scrapping off its weaknesses. Despite its decline and increased French nationalism, modern society still uses some of its practices. One major similarity with capitalism is that the rich own the means of production and the land while the peasants give them their labor.
References
Bayar, T. Ö. (2017). Feudalism. The Wiley‐Blackwell Encyclopedia of Social Theory, 1-2.
Blaufarb, R. (2018). A Reassessment of the Abolition of Feudalism, 1789-1793. La Révolution française. Cahiers de l’Institut d’histoire de la Révolution française, (15).
Cheyette, F. L. (2016). ‘Feudalism’: A Memoir and an Assessment. In Feud, Violence, and Practice (pp. 133-148). Routledge.