Question

Why does the the theory of Robert Malthus regarding population apply to some countries and not others? What are the factors needed for economic growth? How does increased human capital contribute to economic growth?What is the catch up effect with regard to the rate of a nation’s economic growth? What role does technology and productivity play in economic growth? What is the Rule of 70?

Answer 1

Robert Malthus states that the country with enormous food production has exponential growth in population,and the country which outperform the food production in population cause shortage in food supply. as he states the population increases in a geometric ratio, the ratio should be in parallel with the food production otherwise there will cause poverty and shortage in food production.

The essential factors needed for economic growth are :-
Supply of natural resources, foreign investment,human capital, technological progress etc.
The nation need to invest in human capital so as to achieve impressive results in economic growth. The higher the skills of human resources are higher the quantity of outputs and growth will be. Skills and abilities of the human capital determines the growth of a country's economy.
It is the reflex method of developing nations to move forward towards economic growth and ultimately developed nations.

Technology and productivity plays a major role in economic growth, because when technology develops it results in more efficient and better outputs of goods and services. Foreign investors also looks for efficient outputs which leads to more investments and economic growth.
Rule of 70 is used to know, how long it would take an investment to double the given annual rate of return. it is an important rule used when it comes to the matter of investments.