Question

Discuss how technology has impacted and accelerated the growth of several industries in our economy. How does technology stimulate economic growth?

Answer 1

Technology plays a significant role in changing landscape and growth of several industries, if look at all the new industries around us all has shaped significantly with technological advancements Example includes Telecommunication which has been revolutionised through 3G,4G and now 5G , started by an invention from Graham Bell, the industry has changed completely from thereon wards and seen tremendous growth, same applies to ecommere e which with new technology in form of safety and security features, ease and convenience have risen exponentially in last two decades.

Technology always find the place in the growth models whether it's Solow Growth model which emphasize on Technology advancements for long term economic growth same with new new model including Total Factor productivity which provides measure of economic growth that can not be explained through labor and capital growth. Technology has enabled faster communication, faster implementation of policies, quality of products which all have fueled the growth in the society. Technology improve efiiciency of machineries improve productivity, bring economies of scale and hence increase profitability and output.