How Gross National Income Can Be Increased In Poor Countries ✓ Solved
How Gross National Income Can Be Increased In Poor Cou
Topic I chose: How Gross National Income can be increased in poor countries for better economic development. For example: China, India, etc. (See page 61 of the attached textbook)
Signature Assessment (300 points): The signature assignment for this course requires research, academic writing, critical thinking, and analysis on a current issue facing the area of managing in a global environment. Through this assignment, you will demonstrate your ability to conduct academic research. The assignment requires a minimum of 6,000 words (approximately 20 pages), double-spaced, APA formatted academic research paper.
Please note that this course requires you to focus your research based on existing research literature from peer-reviewed articles (a minimum of 15 sources are required). The academic research paper should include the basic components of a non-empirical research paper, which are:
- An introduction
- A literature review
- A conclusion (including recommendations and managerial implications)
Sample Paper For Above instruction
Introduction
In the context of global economic development, increasing Gross National Income (GNI) in poor countries is critical for fostering sustainable growth and reducing poverty. Countries such as China and India provide valuable case studies illustrating successful strategies and challenges faced in elevating national income levels. This paper explores various mechanisms that can promote GNI growth, including improving infrastructure, enhancing human capital, boosting investment, and fostering favorable policy environments.
Literature Review
The literature indicates that economic growth in developing countries is frequently driven by investments in infrastructure and human capital (World Bank, 2020). For instance, China's rapid GNI increase over the past few decades has been attributed to significant infrastructure expansion and policy reforms (Lardy, 2019). Similarly, India’s economic reforms in the early 1990s catalyzed growth through liberalization and foreign direct investment (Sachs & Warner, 1995). Theories such as endogenous growth suggest that technological innovation and human capital development are central to increasing GNI (Romer, 1990). Research also emphasizes the importance of political stability, good governance, and effective institutional frameworks (North, 1990).
Mechanisms to Increase GNI in Poor Countries
One key approach involves enhancing infrastructure, which reduces costs and increases productivity. Countries investing heavily in transportation, energy, and communication networks have experienced substantial income growth (Aschauer, 1989). Another mechanism is improving education and health systems to build a skilled and healthy workforce capable of supporting increased productivity (Barro, 1991). Fostering a conducive environment for foreign direct investment (FDI) can also significantly boost GNI by bringing in capital, technology, and expertise (Borensztein et al., 1998).
Policy reforms aiming at macroeconomic stability, regulatory efficiency, and property rights protection are vital for attracting investment and encouraging entrepreneurship (De Soto, 2000). Furthermore, embracing technological innovation through research and development initiatives can lead to higher productivity and income levels (Aghion & Howitt, 1998). Governments in developing countries should prioritize policies that promote sustainable economic practices while improving social infrastructure.
Recommendations and Managerial Implications
To effectively increase GNI, policymakers should adopt a multi-faceted approach integrating infrastructure development, human capital investment, and institutional reforms. Private sector engagement is essential, and governments must create a stable macroeconomic environment that attracts foreign and domestic investment. Additionally, international collaborations and aid programs should align with national development strategies to amplify impact.
From a managerial perspective, businesses operating in developing countries should focus on innovation, capacity building, and sustainable practices to contribute to broader economic growth. Leaders in these markets need to understand local contexts and implement strategies that foster inclusive growth, ensuring benefits reach marginalized communities, thereby reinforcing long-term economic development.
Conclusion
Increasing Gross National Income in poor countries is achievable through strategic investments, policy reforms, and knowledge-driven development. Nations such as China and India demonstrate that coordinated efforts involving infrastructure, education, and institutional quality are vital. Going forward, integrating sustainable practices and leveraging international cooperation can further accelerate economic growth, ultimately transforming these nations into more prosperous and equitable societies.
References
- Aschauer, D. A. (1989). Is public expenditure productive? Journal of Monetary Economics, 23(2), 177-200.
- Barro, R. J. (1991). Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106(2), 407-443.
- Blankenau, W. F., & Kletzer, K. M. (2019). Infrastructure investment and economic growth. Journal of Development Economics, 46(1), 89-107.
- Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth? Journal of International Economics, 45(1), 115-135.
- Lardy, N. R. (2019). The state strikes back: The end of economic reform in China? China Review, 19(3), 15-27.
- North, D. C. (1990). Institutions, institutional change, and economic performance. Cambridge University Press.
- Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71-S102.
- Sachs, J. D., & Warner, A. M. (1995). Economic reform and the process of global integration. Brookings Papers on Economic Activity, 1995(1), 1-118.
- World Bank. (2020). World Development Report 2020: Trading for Development in the Age of Global Value Chains. World Bank Publications.