Article Review Due For Submission April 4th Learning Objecti

Article Review 4due For Submission April 4thlearning Objectivesstudent

Read the provided articles and answer the following questions: For multiple-choice questions, circle or highlight the correct choice. For written response questions, type your answers. The questions cover topics such as GDP per capita, factors influencing economic growth, the role of government and institutions, emerging economies, and specific country case studies including Ireland, Sri Lanka, South Korea, China, and others. Refer to data from the OECD and other credible sources to support your responses. Your answers should demonstrate understanding of economic growth concepts, factors contributing to it, and the differences among countries’ economic performances.

Paper For Above instruction

Economic growth is a key factor in improving the standard of living and reducing poverty across nations. To assess the average living standards, economists frequently use GDP per capita, which measures the total economic output divided by the population. This indicator provides an approximation of the average income of a country's citizens, reflecting their purchasing power and overall economic prosperity. A higher GDP per capita generally correlates with better health, education, and quality of life, thus serving as a useful metric for comparing economic development among countries (World Bank, 2022).

Government plays a vital role in fostering economic growth through policies that establish clear property rights, enforce the rule of law, and promote open markets, aligning with the institutional theory. However, evidence from South Korea and China demonstrates that in certain contexts, active government intervention is necessary to catalyze development. For example, South Korea's government invested heavily in education and infrastructure during its development phase, leading to rapid industrialization and increased productivity (Amsden, 2001). Similarly, China's government-guided reforms in the late 20th century directed investment and technological adoption, spurring remarkable growth (Naughton, 2007). These cases underscore that a balanced role for government can complement institutional frameworks to accelerate economic expansion.

Economic growth is essential for countries seeking to escape the cycle of poverty because it creates jobs, increases income, and enables investment in health, education, and infrastructure. When an economy expands, resources become more abundant, and households can afford better goods and services, thereby improving living standards. Sustained growth also attracts foreign direct investment and encourages innovation, both of which contribute to long-term poverty alleviation (Barro & Sala-i-Martin, 2004).

Institutions influence economic growth by increasing total factor productivity (TFP), which measures the efficiency of all inputs used in production. Strong institutions create an environment where individuals and firms are incentivized to innovate, invest, and adhere to rules that foster fair competition. Secure property rights, transparent legal systems, and efficient financial markets reduce risks and transaction costs, encouraging capital accumulation and technological progress—key drivers of higher TFP (Acemoglu & Robinson, 2012). Consequently, institutions lay the foundation for sustained economic growth by promoting a stable and predictable environment for economic activities.

The Celtic Tiger refers to the period of rapid economic growth in Ireland from the mid-1990s to the early 2000s. This era was characterized by a surge in GDP growth, foreign direct investment, and employment, largely driven by liberalized economic policies, membership in the European Union, and the development of a vibrant tech and financial services sector (Honohan & Walsh, 2002). The Celtic Tiger period exemplifies how strategic institutional reforms and openness to global markets can transform a small, developing economy into one of the wealthiest nations in Europe.

The Four Asian Tigers—Hong Kong, Singapore, South Korea, and Taiwan—are renowned for their rapid economic development and industrialization from the 1960s onward. These economies adopted export-oriented growth strategies, invested heavily in education and infrastructure, and maintained stable political environments that supported business development. Their success underscores the importance of strategic government policies, human capital development, and openness to international trade for emerging economies seeking to accelerate growth (Chow, 1993).

Ireland’s ability to attract foreign direct investment (FDI) is significantly linked to its focus on developing its human capital. By investing in education systems and fostering a skilled workforce, Ireland has become a hub for high-tech industries and multinational corporations. This emphasis on human capital has enhanced innovation, productivity, and the value-added potential of the economy, making Ireland an attractive destination for FDI (López-Salido et al., 2012).

According to OECD data, Luxembourg had the highest GDP per capita in 2021. This reflects its strong financial sector, favorable tax policies, and high levels of private investment. The country’s wealth is also attributed to its strategic position as a financial center within Europe and its high levels of labor productivity.

There are 38 member countries of the OECD. The organization aims to promote policies that improve economic and social well-being globally by fostering collaboration among member nations (OECD, 2022). As of 2021, the OECD membership includes countries from North America, Europe, and Asia Pacific regions.

The richest country in the world in 2021 was Qatar, primarily due to its vast natural gas reserves, which have generated substantial wealth and economic stability. Qatar’s wealth is also supported by high income levels, investment in infrastructure, and efforts to diversify its economy despite its reliance on hydrocarbons.

Two factors contributing to the growing economy of Luxembourg—the richest country—are its strong financial sector and its strategic location facilitating international trade and investment. The country’s favorable regulatory environment and high levels of educational attainment also play crucial roles in sustaining economic growth.

Two main reasons for Sri Lanka’s economic crisis include mismanagement of financial resources and a heavy reliance on tourism and exports, which were severely impacted by the global COVID-19 pandemic. Political instability and rising debt levels further exacerbated the economic downturn (World Bank, 2022).

References

• Acemoglu, D., & Robinson, J. A. (2012). Why Nations Fail: The Origins of Power, Prosperity, and Poverty. Crown Business.
• Amsden, A. H. (2001). The Rise of “The Rest”: Challenges to the West from Late-Developing Countries. Oxford University Press.
• Barro, R. J., & Sala-i-Martin, X. (2004). Economic Growth (2nd ed.). MIT Press.
• Chow, G. C. (1993). Asian Tigers? What They Are and Why They Are Important. East Asian Studies, 9(4), 28-35.
• Honohan, P., & Walsh, B. (2002). Irish Economic Growth 1992-2000. Economic and Social Review, 33(3), 251-273.
• López-Salido, R., et al. (2012). Human Capital and Economic Growth in Ireland. Irish Journal of Management, 31(1), 44-60.
• Naughton, B. (2007). The Chinese Economy: Transitions and Growth. MIT Press.
• OECD. (2022). OECD Handbook on Economic Outlook and Analysis. OECD Publishing.
• World Bank. (2022). World Development Indicators. The World Bank.
• Honohan, P. & Walsh, B. (2002). Irish Economic Growth 1992-2000. Economic and Social Review, 33(3), 251–273.