Question

Let's think about production and growth for a minute. ______ is the key to increasing GDP per-capita.

• What is the term that belongs in the blank?
• What is one way to increase it in a wealthy country? (note, there may be some other policies that are effective in poor countries but not as effective in wealthy ones)
• How is economic growth potentially good for the environment?

Answer 1

Increasing total factor productivity is is the key to increasing GDP per-capita. This can be achieved with sustainable technological advancement and increase in physical and human capital.

Sound financial system is one way to increase it in a wealthy country because they have resources but if they do not have proper means to channelize them then growth can not be sustained.

With high economic growth, availability of resources will increase and more resources can be attributed to protect environment and there will be less dependency on forest produce which will help in upgrading and protecting environment.