Chapter 8: Economic Growth and Development

In this section

• Factors of Growth (Labor, Capital, Productivity)
  In-depth exploration of how labor, capital, and productivity interact and drive economic growth, featuring real-world examples, diagrams, and exam-focused insights.
• Growth Theories (Classical, Neoclassical, Endogenous)
  Explore the foundational frameworks of Classical, Neoclassical, and Endogenous Growth Theories, and learn how each explains long-run economic expansion, productivity, and policy implications for sustainable development.
• Human Capital, Technology, and Innovation
  Explore how education, skill development, and cutting-edge technology drive economic growth, and learn about the policies and entrepreneurial ecosystems that foster innovative capacity worldwide.
• Demographics and Growth
  Explore how changing population structures—birth rates, life expectancy, migration, and urbanization—shape labor dynamics, savings, and economic development in this comprehensive guide to demographics and growth.
• Barriers to Economic Development
  A deep dive into key obstacles like poor governance, corruption, inadequate capital, and social inequities that hinder sustainable growth—complete with real-world examples, practical insights, and exam-focused applications.
• Environmental and Sustainability Considerations
  Advanced exploration of how economic growth interacts with environmental challenges, sustainable development, carbon pricing, and ESG integration for CFA Level III candidates.
• Institutional Factors in Economic Development
  Explore how legal frameworks, governance, and political stability influence economic growth, reduce uncertainty, and encourage investment in emerging markets and advanced economies alike.
• Role of Infrastructure in Economic Development
  Explore how infrastructure—from roads to digital networks—drives economic growth and social inclusion, alongside key financing strategies and maintenance considerations.
• Absolute vs. Conditional Convergence Debate
  An in-depth exploration of whether all economies can catch up unconditionally or only under specific policy and structural conditions, including theoretical underpinnings, real-world evidence, and implications for investment decisions.
• Measuring and Comparing Living Standards (HDI, Alternative Welfare Indicators)
  Explore how living standards are measured beyond GDP, focusing on HDI and alternative welfare indicators such as MPI, Gini Coefficient, and Gross National Happiness.