Economic Growth and Development Concepts

The idea that societies can develop by embracing scientific inquiry and challenging old ways of doing things.

A shift from traditional economic activities like farming and artisan shops to a market economy with specialized industries.

A set of laws and institutions that protect private property, create free markets, and facilitate business growth.

The growth of a country's economy measured by its total production of goods and services (GDP) per capita.

The period in British history (starting around 1760) when economic growth significantly accelerated, marked by new technologies and increased productivity.

Measurements of different aspects of a society's well-being that can include income, health, education, and living standards.

The increase in the amount of goods and services a country produces over time.

The rate at which a country's population is increasing.

The service sector experienced a significant growth fueled by the needs of industrialization, including transportation, urban development (new cities), and various transaction sectors like trade and finance.

The service sector's rate of growth in productivity lagged considerably behind that of the industrial sector during the same period.

The expansion of the cotton industry was a defining characteristic of British industrialization, with its share of total industrial output surging from less than 3% to over 20% between 1770 and 1831.

The cotton industry witnessed a remarkable average annual growth rate of 6.3%, highlighting its rapid expansion during this period.

The average annual growth rate of the cotton industry outpaced other manufacturing branches such as linen and wool, indicating its faster adoption of technological advancements and efficiency improvements.

The structural changes observed in the manufacturing sector between different industries highlight the dynamic reallocation of resources and production in response to technological advancements and changing market demands.

The data presented on the value added by different industrial branches in Britain from 1770 to 1831 provides a quantitative perspective on the sectoral transformation that propelled the Industrial Revolution.

The data reveals that the British industrial sector exhibited a notable increase in productivity, with an average annual growth rate of 2.7% from 1770 to 1831, indicating overall economic progress during this period.

The Bill of Rights (1688) granted Parliament the power to control government spending, known as the budget right. This shift in power aimed to protect property rights and create a more level playing field by establishing fair and impartial judicial processes.

Before the Bill of Rights, the government (the Crown) lacked the ability to make credible promises to repay loans due to unpredictable and potentially exploitative actions. This deterred investors from lending money, creating a vicious cycle of mistrust and limited economic growth.

With the establishment of the budget right and independent courts, lenders felt more confident in the government's ability to repay. This increased lending, leading to greater investment and economic activity.

The Bill of Rights promoted economic development by creating a more stable and predictable environment for investors. This environment facilitated lower transaction costs, encouraged innovation and industrialization, and increased overall economic activity.

The shift in power towards parliament and the establishment of independent courts represented a foundational change in the economic landscape of Britain, promoting stability, trust and economic growth.

While sound political institutions are crucial drivers of economic development, they are not the sole determinant. Other factors like human capital, technology, and resource availability also play significant roles.

The Bill of Rights, by creating stable institutions, facilitated a shift from a high-risk, exploitative system to a more secure, predictable, and investment-friendly environment. This paved the way for the Industrial Revolution and further economic growth.

The Bill of Rights played a significant role in laying the groundwork for a flourishing market economy in Britain, fostering investment, innovation, and economic growth. Its impact underscores the importance of effective institutions in supporting economic development.

The process of applying scientific knowledge to develop new technologies and techniques, leading to increased productivity and economic growth.

The transition from traditional economic activities like farming and craft-based production to a market-based system driven by factories and large-scale production.

The idea that new technologies are designed to save labor, reducing the need for human workers.

A nation's access to resources like cheap energy (e.g., coal) and a skilled workforce that contribute to its economic growth potential.

A country's economic model where it has relatively low energy costs (e.g., coal) and relatively high wages for its workers.

The adoption of new technologies and methodologies for production, leading to increased output and efficiency.

The spread of scientific and technological advancements across different regions and countries, influencing their economic and social development.

The process of cities growing rapidly due to migration from rural areas, often driven by industrial growth and job opportunities.

The separation of production from consumption, where goods are made in one place and used in another, changing the relationship between people and goods.

The increasing difference in economic prosperity and development level between countries that industrialized first, and those that lagged behind.

The phenomenon where increased efficiency and cheaper energy consumption lead to even higher energy consumption levels.

The idea that economic growth can continue without harming the environment, by using renewable resources and sustainable technologies.

The idea that industrialization is not always beneficial, and can create negative social consequences, such as inequality and environmental damage.

The negative consequences of urbanization, such as poor living conditions, overcrowding, and disease.

A measure of a country's economic output per person, reflecting the average standard of living.

The increased use of energy in a country, often measured by the amount of energy consumed per unit of economic output.

The increase in the amount of energy consumed in a country over a period., usually measured in petajoules.

The economic growth rate of a country's total production of goods and services.

The rate at which a country's population is increasing.

The rate at which a country's capital stock is increasing.

The relationship between energy consumption and economic output.