Question

Sustained economic growth

can be achieved with growth rate over 8% to rapidly boost an economy.

has not been achieved by most countries in the 20th century.

is key because over a long period of time small yearly growth rate compound

China had special economic zones originally in places such as Hong Kong and Shenzhen set up back in the 1980s. Why would the Chinese government support these areas with different rules like no tax on trade or different economic laws?

To increase the number of programs where national taxes can be excised.

To contribute to economic health and growth by keeping more money in government.

To facilitate a healthy economic environment and grow international trade.

Important sources that influence a nation’s economic growth in the long run include(s):

zero rate of population growth.

low college graduation rates.

high rate of labor force growth.

Answer 1

Sustained economic growth is considered to be the key to development because over a long period of time small yearly growth rate compound and make a huge difference in the growth levels and the degree of living standards. The similar arguments was also given by economist like Solow in his growth model.

GDP inital * (1 + g )^n = GDP final

where

g: growth rate of GDP

n: Number of years.

This is the reason why the US and the UK though having a meagre 3-5% growth rates of GDP are higeher on the ladder of growth and level of economic development and why fast growing nations like Brazil and China are still lagging behind.