Question

Discuss some of the characteristics of emerging economies. Why do they grow faster than more advanced economies?

please i need a different answer than the ones already presented

Answer 1

Emerging economies exhibit distinct features and can be identified with following features:

• These economies have relatively lower per capita income.
• High growth rate,: low per capita income drives these economies to high growth trajectory. For example, India is posting over 7 % growth rate per year which is unprecedented. while developed countries do not exhibit such high growth rate.
• These economies are undergoing major social changes which sometimes lead to social unrest.
• These economies are investing heavily in infrastructure development. Education and skills developments are key investment areas.
• These economies are vying for Foreign Direct Investment (FDI) to fund huge developmental projects.

India, China, Brazil, Turkey, Indonesia, South Africa etc are called emerging economies. More advanced economies have exhausted their capacities or saturation points have reached, thus there are few outlets to make investment and accomplish rapid growth rate. Thus, both types of economies are likely to catch up in near future. Advanced economies are even finding difficult to keep their growth rates positive. During the financial crisis of 2007-08, many developed countries found their economic growths in negative zone.