Category: Development Economics

The downward slope of the business cycle is called economic contraction. A contraction is a period when economic output declines. During this phase, the economy is producing fewer goods and services than it did before. When fewer goods and services are produced, fewer resources are used by firms including labor. A contraction generally occurs after the…

Peak: A peak is the highest point between the end of an economic expansion and the start of a contraction in a business cycle. The peak of the cycle refers to the last month before several key economic indicators, such as employment and new housing starts, begin to fall. Trough: A trough, in economic terms, can…

Expansion is the phase of the business cycle where real gross domestic product (GDP) grows for two or more consecutive quarters, moving from a trough to a peak. Expansion is typically accompanied by a rise in employment, consumer confidence, and equity markets and is also referred to as an economic recovery. Money is cheap to borrow, businesses build up inventories again and…

Economic migration is the movement of people from one country to another to benefit from greater economic opportunities in the receiving country. An economic migrant is someone who emigrates from one region to another, including crossing international borders, seeking an improved standard of living, because the conditions or job opportunities in the migrant’s own region are insufficient.

Economic Development is programs, policies or activities that seek to improve the economic well-being and quality of life for a community. What “Economic Development” means to you will depend on the community you live in. Each community has its own opportunities, challenges, and priorities. Economic development also defined as it is the growth of standard of living…

Economic growth can be defined as the increase or improvement in the inflation adjusted market value of the goods and services produced by an economy over a certain period of time. Statisticians conventionally measure such growth as the percent rate of increase in the real gross domestic product, or real GDP. It means that the ratio…

Mercantilism is an economic practice by which governments used their economies to augment state power at the expense of other countries. Governments sought to ensure that exports exceeded imports and to accumulate wealth in the form of bullion. The main idea of Mercantilism is that a nation’s wealth and power were best served by increasing exports and…

Development economics is a branch of economics that focuses on improving fiscal, economic, and social conditions in developing countries. Development economics considers factors such as health, education, working conditions, domestic and international policies, and market conditions with a focus on improving conditions in the world’s poorest countries. Areas that development economics focuses on include health, education, working conditions, and…