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How does economic growth affect the society
Sunday, 11 May 2014 | 20:20 | 0 comments

Poverty
The impact of economic growth on poverty have been documented.The relationship is not direct.In some cases it can be positive ie economic growth leading to reduction in poverty in some cases it can be negative, ie economic growth leading to increase in poverty.The impact of economic growth on poverty depends highly on the inequalities that are prevailing in an economy.And no, i dont think it will make sense to measure poverty in a developed economy in the same way you would meausre it a developing country, because the definitions of poverty will definately differ.
Productivity and National Output
Transportation improvements affect both economic development and productivity. Economic development may be regional in nature and the result of improved access to labor pools, investment in new or expanded enterprises in a given area, or access to larger markets—without a concomitant increase in productivity.

Productivity improvements, which directly generate increased output or development without countervailing offsets elsewhere, are more difficult to isolate since the changes occur within the production process. Yet productivity is key to development—particularly if labor is already nearly fully employed—and investment in capital is key to productivity. New transportation systems are a form of capital investment that can stimulate productivity of labor and private capital.

For example, reduced transportation costs and/or easier access to materials or markets affect business location decisions. That is, decisions on location for new investments may be altered. Changes in transportation costs and ease may even induce existing enterprises to relocate and take advantage of new conditions; such shifts may be intra-regional and thus have no net effect on regional output. Or, such shifts may affect the competitiveness and scale of operations of the affected enterprises, which then achieve higher productivity and make a net positive contribution to national output.

-Charlotte lim-