Long-Run Economic Growth by Krugman and Wells – Article Example
The paper "Long-Run Economic Growth by Krugman and Wells" is a perfect example of an article review on macro and microeconomics.
This journal entry seeks to give a thoughtful account of how the topic on “Long-Run Economic Growth” impacted on my point of view. In this chapter, it is appreciated that small changes in the rate of growth could result in a large difference over a long period of time (Krugman & Wells, 2012). The emphasis of this measurement on the Gross Domestic Product, GDP at the expense of other commonly referred to aspects of quality of life and human development to determine this growth made me appreciate the importance of quantitative measures as the basis for determining the growth of an economy. This is contrary to my previous perception of economic growth where the qualitative aspects mattered more. Even so, long-run economic growth would basically be determined by the improvement in people’s living standards, a qualitative measure.
Nonetheless, this chapter has affirmed the importance I perceived of knowledge among citizens to the performance of an economy. Krugman and Wells (2012) articulate this argument when discussing technology as a critical determinant of long-run growth. Here, these scholars define technology as the sum total of the knowledge of using the other two determinants, labor and capital, to influence production. To me, therefore, technology stands out as the most critical determinant of long-run growth in an economy. With knowledge, then an economy would be able to engage the other factors of production to grow the economy for a long period of time. This was also important in appreciating why some countries such as China took long to achieve economic growth, but now ranks together with earlier economically endowed countries.