Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

One of the core objectives of the government is to achieve a useful andeffective economy, whichwill
improve and maximise quality of people’s life within the country
...
“Economic growth is an increase in the output of a country’s goods and
services” (Grant, 1999: 3)
...
In addition to that, Begg et al
...
Lord Adonis
(2014: 19) claims that in UK regional economic growth is imbalanced and concentrated only in London
and South
...
7% growth in London and 2
...
5% for West Midlands and 2
...
The main purpose of
this coursework is to examine the economic growth and analyse to what extent regional growth affects
national UK growth
...
After that, this
coursework will examine types and causes of economic growth
...
Finally, it will consider the usefulness of the
existing government policies in stimulating the economic growth
...
Measuring the economic growth of
the country is a very complicated process (Mankiw and Taylor, 2011: 525)
...
The GDP can be either nominal or real
...
As a
result, the measurement of economic growth is difference in real GDP, because it can identify the real
changes in the total output of goods and services (Harrison et al
...
Particularly, in UK, the real
GDP was increased from £1655 billion pounds in 2013 to £1698 billion in 2014, a 2
...
2% forecast for GDP in 2014 (British Chambers of Commerce, 2013)
...
It can be clearly seen that
2014 was surprising to the UK economy because there were no clear evidence of usual “North-South”

divide – a clear difference between well-developing South part of UK and less developing North (Pidd,
2015)
...
Lord Adonis suggests that to balance
the economic growth between regions, apprenticeships should be expanded, and innovation strategies
must be implemented in science and research in less-developed regions (The Huffington Post, 2014)
...

“Actual growth is the rate at which the economy is usually growing over a given period” (Gillespie, 2014:
423)
...
Vaitilingam (1994: 25) states that thebusiness cycle consists four stages: boom,
downswing, trough and recovery
...
If
actual GDP above potential there is a positive output gap and vice versa
...
Business Cycle
2
Potential
GDP

National output (GDP)

2
4

3

Actual GDP
1
1 – Trough
2 – Boom
3 – Downswing
4 - Recovery

1

0

Time
Source: Sloman, 2007: 245

The boom stage is identified by relatively high levels of output, spending and national income with a
very rapid economic growth(Vaitilingham, 1994: 26)
...

The Downswing is classified with negative economic growth, low national income,
output
...
The two consecutive
quarters of negative growth are also known as recession
...
There is a risk of deflation and high rate of unemployment
(Grant, 1999: 96)
...

The recovery stage occurs when spending, output and incomes start to rise again (Gillespie, 2014: 429)
...

The main cause of actual economic growth is due to demand-side factors
...
It directly connected
with circular flow of income, where AD = G (Government spending) + I (Investment from firms) + C
(Consumers expenditure) + (X (Exports) – M (Imports))
...
(1992: 185-186) propose that a
change in one component results in changes in AD, consequently, in GDP and economic growth
...

Furthermore, with inflation rate 0
...


Another type of growth – potential, demonstrates the possible economy outcome if all its resources are
employed fully
...
The main cause of potential growth is arise in supply-side factors
...
Either of options
willshift the aggregate supply to the right, what is shownon the figure 6 below:

6
6
...

The economy situation in UK seems to be very optimistic, however, the situation in particular regions is
controversial
...
London always
stays at the top of UK economic growth
...
More income means more Consumer Spending resulting in anincrease in AD of
London (Smith, 2015)
...
The peak of job created was in London, a 17%
increase in 2013, while other regions, especially North, saw around 5% fall in ajob created (BBC, 2015b)
...
3%, comparing to only 5
...
9% in UK in 2013 (Centre for Cities, 2015: 14)
...
Finally, a leakage of higher
educated labour force in South and London regions attracts more attention from the businesses with
increase in firms number by 26
...
7% in North and Midlands (Centre
for Cities, 2015: 16)
...

Despite that, more mineral resources have regions such as North East, Midlands and Scotland (British
Geological Survey, 2005)
...
This
trend can exist due to better-working perspectives in South and London regions
...
Coyne (2015) states that London is
approved to be the best place to life in UK, the second place belongs to second largest town in UK –
Birmingham
...
Environmental damage, such as the air pollution and noise are maximised in these regions, whereas
North and Midlands are considered to be cleanest regions in UK (The Guardian, 2014)
...
Moreover, the
aggressive using of resources will lead to the depletion of theglobal resource base and extinction of
biological species (Riley, 2014)
...
With a relatively high population growth,
these regions try to reduce migrants from other cities by introducing the insane prices for houses
(Boyce, 2014)
...
000, almost twice higher than UK
average £272
...
Also, economic growth leads to theincrease in income and
wealth inequality gap
...

In order to prevent these problems and dangers, it is usually necessary for thegovernment to intervene
by using either demand-side or supply-side policies or both of them simultaneously (Gillespie, 2014:
444-445)
...
However, particularly in UK, the government heavily relies on the supply-side policies
...
The main purpose of this Act is to provide people a
little bit more power from government
...
Furthermore, this plan will allocate “£30 billion of resources, and powers over
skills, transport and economic development to city and county regions” (Labour, 2014)
...
Such
policies are called “Growth Deals”
...
These improvements
will help to increase the economic growth of all regions and cities across UK
...

Government implements a big Transport Policy in UK in order for less-developed regionsto catch up
London and South regions
...
Therefore, to destroy such
inequality, thegovernment aims now to develop existing traffic lines outside London and create a large
railway web in North, which will help to partly reduce the unequal economic growth among regions
...
Despite that “North – South divide” has decreased, there is still imbalanced
economic growth in South and North, like Lord Adonis stated
...
It can be concluded that the main reason of unequal
economic growth is a leakage of human capital to London and South regions and malapportionment of
government budget to regions
...


Reference list
...
& Baxter, R
...
(2011)
...
8th edition
...

BBC
...
Regions to get £6bn in government funding
...
bbc
...
uk/news/business28190016 [Assessed 19 April 2015]
...
(2014b)
...
bbc
...
uk/news/uk-england27971552 [Assessed 19 April 2015]
...
(2015a)
...
http://www
...
co
...

BBC
...
Economic growth 'dramatically' diverges between North and South
...
bbc
...
uk/news/business-30869982 [Assessed 19 April 2015]
...
(2009)
...
4th edition
...

Begg, D
...
&Dornbusch, R
...
Economics
...
Maidenhead: McGraw – Hill
Education
...
(2014)
...
http://www
...
co
...
html [Assessed
19 April 2015]
...
(2013)
...
http://www
...
org
...
html [Assessed 19th April 2015]
...
(2005)
...
http://www
...
ac
...
html [Assessed 19 April 2015]
...
(2015)
...
http://www
...
org/wpcontent/uploads/2015/01/15-01-09-Cities-Outlook-2015
...

Coyne, A
...
Birmingham ranked best UK regional city for quality of life
...
thebusinessdesk
...
html [Assessed 19 April 2015]
...
(2014)
...
3rd edition
...

Grant, S
...
Studies in Economics and Business
...
Oxford:
Heinemann Educational Publishers
...
, Smith, C
...
(1992)
...
London: Macmillan Press Ltd
...
(2014)
...
http://www
...
org
...

Lord Adonis
...
Mending the Fractured Economy
...
Final Report of the
Adonis Review
...
policy-network
...

Mankiw, N
...
& Taylor, M
...
(2011)
...
2nd edition
...


NatWest
...
Regional Growth Tracker Q4
2014
...
rbs
...
pdf [Assessed 19th April 2015]
...
(2015a)
...

http://www
...
gov
...
pdf [Assessed 19th April 2015]
...
(2015b)
...

http://www
...
com/united-kingdom/consumer-spending [Assessed 19 April 2015]
...
(2015c)
...
http://www
...
co
...

Pidd, H
...
UK’s north-south divide has widened, says thinktank
...
theguardian
...

Riley, G
...
Economic Growth –
Disadvantages
...
tutor2u
...

Seery, E
...
Widening gap between rich and poor threatens to swallow us
all
...
theguardian
...

Sloman, J
...
Essentials of Economics
...
Essex: Pearson Education Limited
...
(2015)
...
http://www
...
com/patricksmith/8-ways-the-uks-north-south-divide-has-widened
[Assessed 19 April 2015]
...
(2014)
...
http://www
...
co
...
html [Assessed 19 April 2015]
...
(2014)
...
http://www
...
com/environment/2014/may/07/who-names-uk-cities-breaching-safeair-pollution-levels [Assessed 19 April 2015]
...
(2014)
...

http://www
...
co
...
html [Assessed 19 April 2015]
...
(1994)
...
London:
Pitman Publishing

---