Thursday, March 10, 2011

Economic Performance Indicators


"The impact of property rights on economic growth is examined using indicators provided by country risk evaluators to potential foreign investors. Indicators include evaluations of contract enforceability and risk of expropriation. Using these variables, property rights are found to have a greater impact on investment and growth than has previously been found for proxies such as the Gastil indices of liberties, and frequencies of revolutions, coups and political assassinations. Rates of convergence to U.S.-level incomes increase notably when these property rights variables are included in growth regressions. These results are robust to the inclusion of measures of factor accumulation and of economic policy."

Knack, S. and Keefer, P. (1995), INSTITUTIONS AND ECONOMIC PERFORMANCE: CROSS-COUNTRY TESTS USING ALTERNATIVE INSTITUTIONAL MEASURES. Economics & Politics, 7: 207–227. doi: 10.1111/j.1468-0343.1995.tb00111.x

http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0343.1995.tb00111.x/abstract


Watch this video, and tell us what the performance indicators are currently reporting for the US economy: ** Cracks in China's economy? **
Rising inflation may be an early indicator of more challenging times ahead for China's booming economy.
< http://news.bbc.co.uk/go/em/fr/-/2/hi/business/7474580.stm >

6 comments:

  1. Our country depends on China's performance. China is now doing business with the outside world and there are still hundreds of millions of people that are still stuck in poverty in China. If China's economy continues the way it's going, it will be the largest economy in the world. Last year, China's economy grew 11% and it is continuing to grow. America depends on China's economy. China's inflation, which means the rise of the general level of goods/services in an economy over time, has risen 7.7%. And last week, China rose the fuel prices 18% which is bad news for America. Price controls will only go so far which could be a challenge for China's booming economy in the future. The UK depends largely on their economy as well.

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  2. It has been predicted that China will be the number one leading and largest economy in the world. China is a mass export country who use millions of workers to make the items sold all around the outside of their world. Just in the past year, China's economy grew 11% and it still continues to grow. Most of the things in our American homes were made in China, since there are so many productions, it would seem as if there were no flaws to their economic system. Although China exports many items, there is still an amount of people stuck in poverty. Another crack in China's economy is it's inflation rates of 7.7% and the fuel price increase of 18%. All of these statistics in China will affect the lives of Americans. If the prices in China rise, then most likely the products bought form them will rise as well. I do think that these increase in levels is foreshadowing futures challenges for China because there doesn't seem to be anything done to try and fix the problems. China's economy will be booming, but the challenges ahead might be far greater and may affect those increases in economic factors. Because of increase in oil prices and inflation, poverty might grow even further if nothing is done soon to help stop the gaps between rich and poor.

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  3. The impact of property rights on economic growth is examined using indicators provided by country risk evaluators to potential foreign investors. Indicators include evaluations of contract enforceability and risk of expropriation. Using these variables, property rights are found to have a greater impact on investment and growth than has previously been found for proxies such as the Gastil indices of liberties, and frequencies of revolutions, coups and political assassinations. Rates of convergence to U.S.-level incomes increase notably when these property rights variables are included in growth regressions. These results are robust to the inclusion of measures of factor accumulation and of economic policy.

    [http://onlinelibrary.wiley.com/doi/10.1111/j.1468-0343.1995.tb00111.x/abstract]

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  4. China is said to be the leading economic power in the future years to come. In fact, China's economy has grown 11%, and has continued to grow ever since. America is mainly dependent on China's economy, however. We depend on China for clothes, home appliances, and other consumer products that we do not even realize that we are purchasing. If there is an increase in products there, then there will be an increase in products here. In fact, China has their own cracks in their economy that may even lead to the final downfall of the American economy. This is the increase of inflation and increase in fuel prices in China. By increasing fuel, products from China also increase do to importing costs. By increasing inflation, products increase as they look to level out the amount and value of the currency.

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  5. China has an enormous amount of export that supplies most of the products we have in our homes today. China's economy has been booming off the transactions between China and the U.S. Most of everything that is in a typical household is coming from China and the demand never stops. This is why China's economy is growing increasingly over the years and their economy has grown 11% last year. However, like every country they too have cracks in their system. Inflation in China has gone up to 7.7% and this "may be an early indicator of more challenging times ahead for China's booming economy." Another thing is fuel prices have gone up 18% and that is terrible news for everyone. There is a limit on what the government can do to keep prices down like price control. The gaps between the rich and poor need to be fixed to keep the stability of China's vast economy.

    http://news.bbc.co.uk/2/hi/business/7474580.stm

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  6. China's production and economy have a mirror effect on our economy. A lot of our goods are from china and the prices reflect on their economy and gas prices for shipping. We should be happy that China is the leading economic power because that means chinese goods are not inflating the way they should as gas prices rise. This does also mean that they have the power to increase their prices as they wish because most of their goods are from China and we rely on them quite a lot. I think this is very risky and that we should begin finding a way to decrease the risk we put in relying on the great import from China.

    ReplyDelete