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Essay on Economic Growth: Top 13 Essays | Economics

Here is a compilation of essays on ‘Economic Growth’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Economic Growth’ especially written for school and college students.

Essay on Economic Growth

Essay Contents:

• The New (Endogenous) Economic Growth Theory

Essay # 1. Introduction to Economic Growth:

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Various theories, viewpoints and models have been presented from time to time to account for the sources of economic growth and the determinants of economic development. To most peo­ple, a theory is a contention that is impractical and has no factual support.

For the economist, however, a theory is a systematic explanation of interrelationships among economic variables and its purpose is to explain causal relationships among these variables. Usually a theory is used not only to understand the world better but also to provide a basis for policy. This essay discusses a few of the major theories of economic development, from which emerged alterna­tive approaches to economic development.

The earliest students of development economics were the mercantilists. Mercantilists were a group of traders. They believed that exports were always good for a country because exports implied inflow of precious metals (such as gold and silver). By contrast, imports were harmful for a country because imports implied outflow of precious metals. So, in their view, growth and development of a nation depended on its accumulation of precious metals.

Essay # 2. Adam Smith and Economic Growth :

The mercantilist view was challenged by Adam Smith (1723-1790), the Father of Economics, in 1776. Smith, in his Wealth of Nations, pointed out that the mercantilist view contained a major fallacy. International trade is just like a two-person zero-sum game in which one coun­try’s gains is the other country’s loss. So two trading nations cannot have trade surplus (or favourable balance of trade) at the same time. In the late 18th century Smith argued that the true wealth of a nation is not its accumulated gold and silver hut its labour power— the human factor of production.

And the wealth of nation depended on two main factors:

(i) The productivity of labour, and

(ii) The proportion of productive labour in the total labour force (i.e., the labour force participation rate).

Smith believed that division of labour, specialisation, and exchange were the true springs of economic growth.

Smith argued that in a market-based (competitive) economy, with no collusion, cartel or monopoly, each individual, by acting in his (her) own interest, promoted the public interest. A producer who charges more than others will not find buyers, a worker who asks more than the going wages will not get job, and an employer who pays less than the market wage (i.e., the wages competitors pay) will not find anyone to work.

It was as if an invisible hand were behind the self-interest of capitalists, merchants, landlords and workers, directing their actions toward maximum economic growth. So Smith advocated a laissez-faire (non-interference of govern­ment in economic matters) and free trade policy as two growth-promoting measures.

Essay # 3. The Classical Theory of Economic Stagnation :

The classical theory, based on the work of David Ricardo (1772-1823), had a pessimistic view about the possibility of sustained economic growth. For Ricardo, who assumed little continu­ing technical progress, growth was limited by scarcity of land. A major tenet of Ricardo was the law of diminishing returns.

For him, diminishing returns due to population growth and a fixed supply of land threatened economic growth. Since Ricardo believed that technical change or improved production techniques could only temporarily avert the operation of the law of di­minishing returns, increasing capital was seen as the only way to offset this long-run threat.

However, any fall in the rate of capital accumulation would lead to eventual stagnation. Ricardian stagnation might result in a Marxian scenario, in which wages and investment would be maintained only if property were confiscated by society and payments to private capitalists and landlords stopped.

Essay # 4. Marx’s Theory of Economic Development :

Marx (1818-83) predicted that the capitalist system would in the initial stage grow due to increased profit (surplus value which was the result of exploitation of labour) and would pro­vide funds for accumulation. But since wages were pegged at the subsistence level, due to the existence of a huge reserve army of unemployed, the capitalists would suffer from a realisation crisis. They would not be able to realise the profits embodied in already produced goods. And, according to Marx, the under consumption of the masses is the root cause of all crises.

Marx, in fact, made certain predictions about the growth, maturity and stagnation of capital­ism. He predicted that the capitalist system would ultimately collapse for want of markets and would yield place to socialism.

Unfortunately, history has not obliged Marx. The year 1989 saw the collapse of socialism (especially in erstwhile USSR and its satellite countries) and with it the abandonment of the centralised planning system and the emergence of newborn post-socialist countries.

All these countries have embraced the market system which is now thought to be a more efficient mecha­nism for solving society’s economic problems, promoting faster economic growth and improv­ing the living standards of the people.

Essay # 5. Rostow’s Stages of Economic Grow th:

By criticizing Marx’s stages of growth, viz, feudalism, capitalism and socialism, Walter W. Rostow sets forth a new historical synthesis about the beginnings of modern economic growth on six continents.

His economic stages are:

(i) The traditional society,

(ii) The preconditions for takeoff,

(iii) The takeoff,

(iv) The drive to maturity, and

(v) The age of high mass consumption.

The most important stage is the third one, i.e., the takeoff stage. In order to reach that stage a country must save and invest at least 10 -12% of its national income. Many Western countries had already reached the stage when Rostow’s book appeared. Many underdeveloped countries reached the stage later (mainly under the influence of planning).

Essay # 6. Vicious Circle Theory of Economic Growth :

The vicious circle theory presented by Ragnar Nurkse in his book- The Problems of Capital Formation in Underdeveloped Countries, 1953) indicates that poverty perpetuates itself in mutually reinforcing vicious circles on both the supply and demand sides. In fact, low per capita income is both the cause and the effect of poverty.

A. Supply Side :

At low levels of income, people cannot save much. Shortage of capital leads to low productiv­ity of labour, which perpetuates low levels of income. Thus the circle is complete, as shown in Fig. 1. A country is poor because it was previously so poor that it could not save and invest. Or, as Jeffrey Sachs (2005) explains the poverty trap: ‘Poverty itself is the cause of economic stagnation.’

In short, various obstacles to development are self-enforcing. Low levels of income prevent saving, retard capital growth, hinder productivity growth and keep income low. Successful development may require taking steps to break the chain at various points. By contrast, as countries get richer they save more, creating a virtuous circle in which high sayings rates lead to faster growth. A country is rich because it was rich in the past. Or a rich country is likely to become richer in the future.

B. Demand Side:

In addition, due to the narrow size of the domestic market for light consumer goods (such as shoes, textiles, radio, etc.) there is hardly any incentives for potential entrepreneurs to investment. Lack of invest means low factor productivity and continued low income. A country is poor because it was so poor in the past that it could not provide the market to spur investment.

Essay # 7. Balanced Vs. Unbalanced Economic Growth :

A major debate in the areas of development economics from the 1940s through the 1960s concerned balanced growth versus unbalanced growth. The term balanced growth has been used in different senses. The meaning of the term may vary from the absurd requirement that all sectors grow at the same rate to the more sensible plan that a minimum attention has to be given to all major sectors—industry, agriculture, and services.

Balanced Growth :

The main advocate of the doctrine of balanced growth was Nurkse. To him, balanced growth means the synchronized application of capital to a wide range of different industries. Nurkse considers this strategy as the only escape route from the vicious circle of poverty (under­development).

Big Push Thesis :

The advocates of the Nurkseian doctrine support the big push thesis, arguing that a strategy of gradualism is bound to fail. A substantial effort is needed to overcome the inertia inherent in a stagnant economy. According to Paul N. Rosenstein-Rodan (1943), the factors that contribute to economic growth—such as demand and investment in infrastructure—do not increase smoothly but are subject to sizable jumps or indivisibilities. These indivisibilies result from flows created in the investment market by external economies (positive externalities), that is, cost advantages en­joyed by one firm due to output expansion by another firm.

These benefits spillover to society as a whole, or to some members of it, rather than to the investor concerned. This means that the social profitability of this investment exceeds its private profitability. Furthermore, unless the government intervenes, total private investment will be grossly inadequate compared to soci­ety’s needs.

Indivisibility in Infrastructure :

For Rosenstein-Rodan, a major indivisibility is in infrastructure, such as power, transport and communications. This basic social capital reduces costs to other industries.

Indivisibility in Demand :

The indivisibility arises from the interdependence of investment decisions; that is, a prospec­tive investor is uncertain whether the output from his investment projects will find a market. This problem can be solved if a number of industries are set up so that new producers become each other’s customers and create additional markets through increased incomes. Complemen­tary demand reduces the risk of not finding a market. Reducing interdependent risks increases the incentive to invest.

Hirschman’s Strategy of Unbalanced Growth:

A. O. Hirschman develops (1958) the idea of unbalanced investment to complement existing imbalances. In his view, deliberately unbalancing the economy, in line with a predesigned strategy, is the best path for economic growth. He argues that the big push theory cannot be applied to less developed countries (LDCs) because they do not have the skills needed to launch such a massive effort. The scarcest resource in LDCs is the decision-making input, i.e., entrepreneurship, not capital. Economic development is held in check not by shortage of savings, but by that of risk-takers and decision-makers.

In Hischman’s view, low-income countries need a development strategy that spurs invest­ment decisions. He suggests that since physical resources and managerial skills and abilities are scarce in LDCs, a big push is sensible only in strategically selected industries within the economy. Growth is then likely to spread from one sector to another (similar to Rostow’s concept of leading and lagging sectors).

However, it is not in the Tightness of things to leave investment decisions solely to indi­vidual entrepreneurs in the market. The reason is that the profitability of different investment projects may depend on the order in which they are undertaken. For example, the return from a car factory may be 12%, and that from a steel plant 10%. However, if the car factory is set up first, its return is likely to be low due to shortage of steel.

However, if the steel plant is set up, the returns to the car factory may increase in the next period from 12 to 15%. This means that society would be better off investing in the steel plant first and the car factory next, rather than making independent decisions based on the market. So planners and policy-makers need to consider the interdependence of one investment project with another so that they maximise overall social profitability.

They need to make that investment which promotes the maximum investment. Investment should be concentrated in those industries which have the strongest linkages—both backward (to enterprises that sell inputs to the industry) and forward (to units that buy output from the industry).

The steel industry, for instance, may be accorded the maxi­mum priority by the planners because it has backward linkages with coal and iron ore indus­tries, and forward linkages with car and engineering industries. So there is need for making public investment in steel industry which has a strong investment potential in the sense that it is likely to spur private investment. Similarly, public investment in power and transport will in­crease productivity and thus encourage investment in various other industries.

Critique of Unbalanced Growth :

One main drawback of unbalanced growth approach is that it fails to stress the importance of agricultural investments. According to Hirschman, agriculture does not stimulate linkage for­mation so directly as other industries.

However, empirical studies indicate that agriculture has substantial linkages to other sectors. Moreover, as Johnston and Mellor have pointed out, agri­cultural growth makes vital contributions to the non-agricultural sector through increased food supplies, added foreign exchange, labour supply, capital transfer and wider markets.

The truth is that there is no conflict between these two strategies of development. An opti­mum strategy must combine some elements of balance as well as imbalance. As E. Wayne Nafziger has opined- ‘What constitutes the proper investment balance among sectors requires careful analysis. In some instances, imbalances may be essential for compensating for existing imbalances. By contrast, Hirschman’s unbalanced growth should have some kind of balance as an ultimate aim.’

Essay # 8. Underdevelopment as Coordination Failure :

To some modern economists underdevelopment is result of coordination failure. This is why the theory of big push or critical minimum effort or balanced growth has been put forward. The coordination failure problem leads to multiple equilibria, as has been suggested by M. P. Todaro.

The basic point is that benefits an economic agent receives from taking an action depends positively on how many other agents are expected to take the same action or the extent of these actions. For example, price a farmer can expect to receive for his output depends on the number of intermediaries who are active in channel of distribution which, in turn, depends on number of other farmers who specialise in the same product.

Likewise, fertility decision need in effect to be coordinated across families. All are better if average fertility rate declines. But any one family may be worse off by being only one to have fewer children. The reason is that in rural areas children are a source of labour power for agricultural families. So if only one family adopts the small family norm it will have to hire workers from the external labour market by paying higher wages.

In Fig. 2 the S-shaped privately rational decision function YY first increase at a increasing rate and the at a decreasing rate.

This shape reflects typical nature of complementariness. For example, some economic agents may take complementary action such investing even if others in the economy do not, particu­larly when interactions are expected through foreigners, say, through exporting. If in this case one or a few agents take action, each agent may be isolated from others. So spillovers may be minimum.

Thus the curve YY does not rise quickly at first as more agents take the decision to invest. But after enough invest there may be a cumulative effect, in which most agents begin to provide external benefits to neighbouring agents and the curve rises at a much faster rate. Finally, after most potential investors have been seriously affected and most important gains have been realised the curve starts to rise at a decreasing rate.

In Fig. 2 function YY cuts the 45° line three times. Thus there is possibility of multiple equilibria. Of these D 1 and D 3 are stable equilibria. The reason is that if expectations were slightly changed to a little above or below these-levels economic agents (investors) would adjust their behaviour in such a way as to bring the economy back to equilibrium levels. In each case YY function cuts 45° line from above. This is the hallmark of a stable equilibrium.

The intermediate equilibrium at D 2 cuts YY function from below. So it is unstable. This is because if a few less entrepreneurs were expected to invest equilibrium would be D 1 and if a few more, equilibrium would shift to D 3 .

Therefore, D 2 may be treated as chance equilibrium, i.e., it could be an equilibrium only by chance. Thus in practice we can think of an unstable equilibrium such as a D 2 as ways of dividing ranges of expectations over which a higher or lower stable equilibrium will hold sway.

Thus there is need for coordinating investment decisions when the value (rate of relation) of one investment depends on the presence or the extent of other investments. All are better off with more investors or higher rate of investment.

But this cannot be achieved only through market system. So there is need for government intervention. It is possible to achieve the de­sired outcome only under the influence of certain types of government policies. Difficulties of investment coordination give rise to government-led strategies for industrialisation.

Technology Spillover :

The investment coordination perspective explains the nature and extent of problems posed when technology has spread effects, i.e., development of technology by one firm has favour­able effects on other firms, i.e., positive externality.

Now suppose we show average rate of investment expected of other key firms or in the economy as a whole on the horizontal axis or profitable rate of investment for a particular firm on the vertical axis, given what other firms are expected to invest on average. In this case points where the YY the curve crosses 45° line in Fig. 2 depict equilibrium investment rates.

Then due to direct relation between investment and growth, the economy may get struck in a low growth rate largely because its expected rate of investment is likely to be low. Changing expectations may not be sufficient if it is more profitable for a firm to wait for others to invest rather than to take the lead and become a ‘pioneer’ investor. In that case there is need for government policy in addition to a change of expectation of investors.

This is why attention to the presence of multiple equilibria is so important. Market forces can bring us to one of these equilibria but they are not sufficient to ensure that no equilibrium will be achieved and they offer no mechanism to move from a bad equilibrium to a good one.

In general when jointly profitable investment may not be made without coordination multi­ple equilibria may exist in which the same individuals with access to same resources and tech­nologies could find themselves in either a good or bad situation. For example, the extent of effort of each firm in a developing region puts to increase the rate of technological transfer depends on effort put by other firms.

No doubt bring in modern technology from abroad often has spillover effects for other firms. But the presence of multiple equilibria subject to making better technology available is a necessary but not a sufficient condition to achieve faster economic growth and consequent improvement in the living standards of the people.

Essay # 9. The Lewis Model of Economic Growth :

In the Lewis model, economic growth occurs due to an increase in the size of the industrial sector, which accumulates capital, relative to the subsistence agricultural sector, which does not accumulate any capital. The source of capital in the industrial sector is profits from the low wages paid in unlimited supply of surplus labour from traditional agriculture. An unlimited supply of labour available to the industrial sector facilitates capital accumulation and economic growth.

Urban industrialists increase their labour supply by attracting workers from agriculture who migrate to urban areas when wages there exceed rural wages. Lewis elaborates this point while explaining labour transfer from agricultural to industry in a newly industrializing country. Industrial expansion would come to a halt when labour shortages develop in rural areas.

The significance of the Lewis model is that growth takes place as a result of structural change. An economy consisting mainly of a subsistence agricultural sector (which does not save) is transformed into one predominantly in the modern capitalist sector (which alone saves). As the relative size of the capitalist sector grows, the ratio of profits and other surplus to na­tional income grows.

Essay # 10. The Fei-Ranis Modification of Lewis Model of Economic Growth :

In John Fei and Gustav Ranis, in their modification of the Lewis model, contend that the agri­cultural sector must grow, through technical progress, for output to grow as fast as population; technical change increases output per hectare to compensate for the growing pressure of labour on land, which is a fixed resource. As with the Lewis model, the advent of fully commercialized agriculture and industry ends industrial growth (or what Fei-Ranis calls the take-off into self-sustained growth).

Essay # 11. Baran’s Neo-Marxist Thesis :

Paul A. Baran incorporated Lenin’s concepts of imperialism and international class conflict into his theory of economic growth and stagnation. For Baran LDCs were unlikely to achieve growth and development because of Western economic and political domination, especially in the colonial period.

Capitalism arose not through the growth of small competitive firms at home but through the transfer from abroad of advanced monopolistic business. Baran felt that as capitalism took hold, the bourgeoisie (business and middle classes) in LDCs, lacking the strength to spearhead thorough institutional change for major capital accumulation, would have to seek allies among other classes.

From Marxian perspective Baran writes:

What is decisive is that economic development in underdeveloped countries is profoundly inimical to the dominant interests in the advanced capitalist countries. The backward world has always represented the indispensable hinterland of the highly developed capitalist West.

The only way out of the impasse may be worker and peasant revolution, expropriating land and capital, and establishing a new regime based on collective effort and the creed of the pre­dominance of interests of society over the interests of a selected few.

Essay # 12. Dependency Theory of Economic Growth :

According to A. G. Frank, a major dependency theorist, underdevelopment is not simply non-development, but is a unique type of socioeconomic structure that results from the depend­ency of the underdeveloped country on advanced capitalist countries.

This results from foreign capital removing a surplus from the dependent economy to the advanced country by structur­ing the underdeveloped economy in an ‘external orientation’ that includes the export of pri­mary products, the import of manufactures, and dependent industrialisation. As Frank states- ‘It is capitalism, world and national, which produced under development in the past and still generates underdevelopment in the present.’

Frank’s dependency approach maintains that countries become underdeveloped through integration into, not isolation from, the international capitalist system. However, despite some evidence supporting Frank, he does not give adequately demonstration that withdrawing from the capitalist system results in faster economic development.

Unequal Exchange :

According to dependency theorists, the same process of capitalism that brought development to the presently advanced capitalists countries resulted in the underdevelopment of the depend­ent periphery. The global system is such that the development of part of the system occurs at the expense of other parts. Underdevelopment of the periphery is the Siamese twin of develop­ment of the centre.

Centre-periphery trade is characterised by unequal exchange. This may refer to deteriora­tion in the peripheral country’s terms of trade. It may also refer to unequal bargaining power in investment, transfer of technology, taxation, and relations with multinational corporations. According to S. Amin, unequal exchange means the exchange of products whose production involves wage differentials greater than those of productivity.

The Neoclassical Counterrevolution :

The neoclassical counterrevolution to Marxian and dependency theory emphasised reliance on the market, private initiative, and deregulation in LDCs. Neoclassical growth theory empha­sised the importance of increased saving and capital formation for economic development and for empirical measures of sources of growth. The neoclassical model predicts that incomes per capita between rich and poor countries will converge. But empirical studies do not support this prediction.

This is why N. G. Mankiw and others propose an augmented Solow neoclassical model which includes human capital as an additional explanatory variable to physical capital and labour. The Washington institutions of the World Bank, IMF, and US Government have applied neoclassical analysis in their policy-based lending to LDCs.

Essay # 13. The New (Endogenous) Economic Growth Theory :

The new (endogenous) growth theory developed by Paul Romer arose from concerns that neo­classical economists neglected the explanations of technical change and accepted the unrealis­tic assumption of perfect competition. For Mankiw, Romer, and Weil, human capital and for Romer, endogenous (originating internally) technology, when added to physical capital and labour in neoclassical growth theory, are important factors contributing to economic growth.

One reason is that although there are diminishing returns to physical capital, there are constant returns to all (human and physical) capital. The new growth theory, however, does no better than an enhanced neoclassical model in measuring the sources of economic growth.

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Essay on Economic Growth And Development

Students are often asked to write an essay on Economic Growth And Development in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Economic Growth And Development

What is economic growth.

Economic growth means that a country is making more goods and services than before. This is often measured by looking at the Gross Domestic Product (GDP), which adds up the value of everything produced in a country. When GDP goes up, it usually means more jobs and money for people.

What is Economic Development?

Economic development is different. It’s not just about making more things; it’s about improving people’s lives. This includes better education, healthcare, and housing. It also means having a cleaner environment and making sure that everyone has a chance to succeed.

Why Are They Important?

Growth and development are important because they can make people’s lives better. When an economy grows, there are usually more jobs, which means people can earn more money to buy what they need and want. Development makes sure that this money also leads to a better quality of life.

250 Words Essay on Economic Growth And Development

Understanding economic growth.

Economic growth means that a country is making more goods and services than before. Think of it like a lemonade stand. If you sell more lemonade this year than last year, your stand has grown. For a whole country, we measure this growth by looking at something called the Gross Domestic Product, or GDP for short. This is like adding up all the money made from lemonade and everything else sold in the country.

The Meaning of Economic Development

Why growth and development matter.

When countries grow and develop, people usually have more money and better lives. Parents can buy more things for their kids, like books or toys. They can also take better care of their families, with better food and medicine. Countries can also take care of the planet by keeping the air and water clean.

Challenges on the Way

Sometimes, making more money can hurt the environment or make some people very rich while others stay poor. So, leaders must make smart choices to ensure that growth helps everyone and doesn’t harm our planet.

In short, economic growth and development are about making more and living better. Just like a lemonade stand, a country works to sell more and also to improve the stand and the neighborhood. This way, everyone can enjoy a sweeter sip of success.

500 Words Essay on Economic Growth And Development

Economic growth is like a country’s scorecard. It tells us how much more goods and services a country is making this year compared to last year. Imagine you have a lemonade stand. If you sell more cups of lemonade this summer than you did last summer, that’s growth. Countries measure their economic growth by calculating something called the Gross Domestic Product, or GDP for short. It’s like adding up all the money made from every lemonade stand and every other business in the country.

Why Economic Growth Matters

Why should we care about a country growing economically? Because it’s a sign that things are going well. When a country’s economy grows, it means more jobs for people, better salaries, and more money to spend on important things like schools, hospitals, and roads. It’s like if your lemonade stand makes more money, you can buy more lemons and sugar, make your stand look nicer, and maybe even hire your friends to help you.

Difference Between Growth and Development

Challenges on the road to development.

Even though growth and development sound great, they’re not easy to achieve. Some countries have a hard time growing because they lack resources or technology. Others grow quickly but don’t make sure the benefits reach everyone. Imagine if you made lots of money at your lemonade stand but didn’t share with your helpers or didn’t make your stand safe and clean. That wouldn’t be fair, right?

How to Achieve Sustainable Development

To make sure a country develops in a good way, growth needs to be sustainable. This means taking care of the environment and making sure we don’t use up all the resources. It’s like using eco-friendly cups and not wasting lemons at your stand. Also, everyone in the country should be included in the growth. It’s important to help people who are poor or live in places where it’s harder to get good jobs.

The Role of Education

In conclusion, economic growth and development are about making more money and making life better for everyone in a country. It’s like running a successful lemonade stand that not only sells a lot of lemonades but also takes good care of its workers, customers, and the environment. When a country focuses on both growth and development, it’s on the path to becoming a happier, healthier place for all its people.

That’s it! I hope the essay helped you.

Happy studying!

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Economics Essay Examples

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Published on: Jun 6, 2023

Last updated on: Jan 31, 2024

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• What are the economic consequences of implementing a carbon tax to combat climate change?
• How does globalization influence income distribution and the wage gap in developed economies?

IB Economics Extended Essay Examples 

IB Economics Extended Essay Examples

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114 Economic Growth Essay Topic Ideas & Examples

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Economic growth is a crucial aspect of any country's development and prosperity. It refers to the increase in the production of goods and services in an economy over time, leading to higher income levels and improved living standards for the population. As such, economic growth is a key indicator of a country's overall economic health and can have a significant impact on various sectors such as employment, investment, and international trade.

When it comes to writing an essay on economic growth, there are countless topics and examples to explore. Whether you are a student looking for inspiration for your next assignment or a researcher looking to delve deeper into the subject, here are 114 economic growth essay topic ideas and examples to get you started:

• The impact of technological advancements on economic growth
• The role of infrastructure development in fostering economic growth
• The relationship between education and economic growth
• The effects of government policies on economic growth
• The importance of innovation in driving economic growth
• The impact of globalization on economic growth
• The role of entrepreneurship in stimulating economic growth
• The effects of population growth on economic development
• The relationship between income inequality and economic growth
• The impact of natural resources on economic growth
• The effects of demographic changes on economic growth
• The role of monetary policy in promoting economic growth
• The impact of fiscal policy on economic growth
• The effects of trade liberalization on economic growth
• The relationship between financial development and economic growth
• The role of foreign direct investment in driving economic growth
• The effects of corruption on economic growth
• The impact of environmental sustainability on economic growth
• The relationship between healthcare and economic growth
• The effects of social capital on economic development
• The role of institutions in fostering economic growth
• The impact of urbanization on economic growth
• The effects of inflation on economic development
• The relationship between government debt and economic growth
• The role of technology transfer in promoting economic growth
• The effects of labor market regulations on economic growth
• The impact of political stability on economic development
• The relationship between property rights and economic growth
• The role of foreign aid in fostering economic growth
• The effects of currency devaluation on economic development
• The impact of financial crises on economic growth
• The relationship between education and human capital formation
• The role of public-private partnerships in promoting economic growth
• The effects of international trade agreements on economic development
• The impact of automation on economic growth
• The relationship between economic growth and poverty reduction
• The role of economic diversification in fostering sustainable growth
• The effects of demographic transitions on economic development
• The impact of climate change on economic growth
• The relationship between energy consumption and economic development
• The role of regional integration in promoting economic growth
• The effects of government corruption on economic development
• The impact of social welfare programs on economic growth
• The relationship between financial inclusion and economic development
• The role of job creation in driving economic growth
• The effects of income redistribution on economic development
• The impact of agricultural productivity on economic growth
• The relationship between industrialization and economic development
• The role of foreign exchange reserves in promoting economic growth
• The effects of trade protectionism on economic development
• The impact of technological diffusion on economic growth
• The relationship between economic growth and environmental degradation
• The role of sustainable development goals in fostering economic growth
• The effects of population aging on economic development
• The impact of digital transformation on economic growth
• The relationship between financial literacy and economic development
• The role of social entrepreneurship in promoting economic growth
• The effects of income mobility on economic development
• The impact of public investments on economic growth
• The relationship between economic growth and social cohesion
• The role of gender equality in fostering economic development
• The effects of cultural diversity on economic growth
• The impact of technological adoption on economic development
• The relationship between economic growth and income distribution
• The role of inclusive growth in promoting sustainable development
• The effects of financial inclusion on economic growth
• The impact of digital infrastructure on economic development
• The relationship between economic growth and public health
• The role of social capital in fostering economic development
• The effects of labor market flexibility on economic growth
• The impact of consumer spending on economic development
• The relationship between economic growth and political stability
• The role of human capital development in promoting economic growth
• The effects of urbanization on sustainable development
• The impact of transportation infrastructure on economic growth
• The relationship between economic growth and social mobility 77

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Tips for writing economics essays

Some tips for writing economics essays  Includes how to answer the question, including right diagrams and evaluation – primarily designed for A Level students.

1. Understand the question

Make sure you understand the essential point of the question. If appropriate, you could try and rephrase the question into a simpler version.

For example:

Q. Examine the macroeconomic implications of a significant fall in UK House prices, combined with a simultaneous loosening of Monetary Policy.

In plain English.

• Discuss the effect of falling house prices on the economy
• Discuss the effect of falling interest rates (loose monetary policy) on economy

In effect, there are two distinct parts to this question. It is a valid response, to deal with each separately, before considering both together.

It helps to keep reminding yourself of the question as you answer. Sometimes candidates start off well, but towards the end forget what the question was. Bear in mind, failure to answer the question can lead to a very low mark.

2. Write in simple sentences

For clarity of thought, it is usually best for students to write short sentences. The main thing is to avoid combining too many ideas into one sentence. If you write in short sentences, it may sound a little stilted; but it is worth remembering that there are no extra marks for a Shakespearian grasp of English. (at least in Economics Exams)

Look at this response to a question:

Q. What is the impact of higher interest rates?

Higher interest rates increase the cost of borrowing. As a result, those with mortgages will have lower disposable income. Also, consumers have less incentive to borrow and spend on credit cards. Therefore consumption will be lower. This fall in consumption will cause a fall in Aggregate Demand and therefore lead to lower economic growth. A fall in AD will also reduce inflation.

I could have combined 1 or 2 sentences together, but here I wanted to show that short sentences can aid clarity of thought. Nothing is wasted in the above example.

Simple sentences help you to focus on one thing at once, which is another important tip.

3. Answer the question

Quite frequently, when marking economic essays, you see a candidate who has a reasonable knowledge of economics, but unfortunately does not answer the question. Therefore, as a result, they can get zero for a question. It may seem harsh, but if you don’t answer the question, the examiner can’t give any marks.

At the end of each paragraph you can ask yourself; how does this paragraph answer the question? If necessary, you can write a one-sentence summary, which directly answers the question. Don’t wait until the end of the essay to realise you have answered a different question.

Discuss the impact of Euro membership on UK fiscal and monetary policy?

Most students will have revised a question on: “The benefits and costs of the Euro. Therefore, as soon as they see the Euro in the title, they put down all their notes on the benefits and costs of the Euro. However, this question is quite specific; it only wishes to know the impact on fiscal and monetary policy.

The “joke” goes, put 10 economists in a room and you will get 11 different answers. Why? you may ask. The nature of economics is that quite often there is no “right” answer. It is important that we always consider other points of view, and discuss various different, potential outcomes. This is what we mean by evaluation.

Macro-evaluation

• Depends on the state of the economy – full capacity or recession?
• Time lags – it may take 18 months for interest rates to have an effect
• Depends on other variables in the economy . Higher investment could be offset by fall in consumer spending.
• The significance of factors . A fall in exports to the US is only a small proportion of UK AD. However, a recession in Europe is more significant because 50% of UK exports go to EU.
• Consider the impact on all macroeconomic objectives . For example, higher interest rates may reduce inflation, but what about economic growth, unemployment, current account and balance of payments?
• Consider both the supply and demand side . For example, expansionary fiscal policy can help to reduce demand-deficient unemployment, however, it will be ineffective in solving demand-side unemployment (e.g. structural unemployment)

Example question :

The effect of raising interest rates will reduce consumer spending.

• However , if confidence is high, higher interest rates may not actually discourage consumer spending.

If the economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth. (AD falls from AD1 to AD2)

• However , if there is already a slowdown in the economy, rising interest rates may cause a recession. (AD3 to AD3)

Micro-evaluation

1. The impact depends on elasticity of demand

In both diagrams, we place the same tax on the good, causing supply to shift to the left.

• When demand is price inelastic, the tax causes only a small fall in demand.
• If demand is price elastic, the tax causes a bigger percentage fall in demand.

2. Time lag

In the short term, demand for petrol is likely to be price inelastic. However, over time, consumers may find alternatives, e.g. they buy electric cars. In the short-term, investment will not increase capacity, but over time, it may help to increase a firms profitability. Time lags.

3. Depends on market structure

If markets are competitive, then we can expect prices to remain low. However, if a firm has monopoly power, then we can expect higher prices.

4. Depends on business objectives

If a firm is seeking to maximise profits, we can expect prices to rise. However, if a firm is seeking to maximise market share, it may seek to cut prices – even if it means less profit.

5. Behavioural economics

In economics, we usually assume individuals are rational and seeking to maximise their utility. However, in the real world, people are subject to bias and may not meet expectations of classical economic theory. For example, the present-bias suggest consumers will give much higher weighting to present levels of happiness and ignore future costs. This may explain over-consumption of demerit goods and under-consumption of merit goods. See: behavioural economics

Exam tips for economics – Comprehensive e-book guide for just £5

9 thoughts on “Tips for writing economics essays”

I really want to know the difference between discussion questions and analysis questions and how to answer them in a correct way to get good credit in Economics

Analysis just involves one sided answers while Discussion questions involve using two points of view

This is a great lesson learnd by me

how can I actually manage my time

The evaluation points in this article are really useful! The thing I struggle with is analysis and application. I have all the knowledge and I have learnt the evaluation points like J-curve analysis and marshall learner condition, but my chains of reasoning are not good enough. I will try the shorter sentences recommended in this article.

What kind of method for costing analysis is most suitable for a craft brewery, in order to analyze the cost of production of different types of beer_

Really useful!Especially for the CIE exam papers

Does anyone know how to evaluate in those advantages/disadvantages essay questions where you would basically analyse the benefits of something and then evaluate? Struggling because wouldn’t the evaluation just be the disadvantages ?? Like how would you evaluate without just stating the disadvantage?

This is an excellent source of adbvise

Leave a comment Cancel reply

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• Introduction
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economic growth

economic growth , the process by which a nation ’s wealth increases over time. Although the term is often used in discussions of short-term economic performance, in the context of economic theory it generally refers to an increase in wealth over an extended period.

(Read Milton Friedman’s Britannica entry on money.)

Growth can best be described as a process of transformation. Whether one examines an economy that is already modern and industrialized or an economy at an earlier stage of development, one finds that the process of growth is uneven and unbalanced. Economic historians have attempted to develop a theory of stages through which each economy must pass as it grows. Early writers, given to metaphor, often stressed the resemblance between the evolutionary character of economic development and human life—e.g., growth, maturity, and decadence. Later writers, such as the Australian economist Colin Clark, have stressed the dominance of different sectors of an economy at different stages of its development and modernization. For Clark, development is a process of successive domination by primary (agriculture), secondary (manufacturing), and tertiary (trade and service) production. For the American economist W.W. Rostow, growth proceeds from a traditional society to a transitional one (in which the foundations for growth are developed), to the “take-off” society (in which development accelerates), to the mature society. Various theories have been advanced to explain the movement from one stage to the next. Entrepreneurship and investment are the two factors most often singled out as critical.

Economic growth is usually distinguished from economic development, the latter term being restricted to economies that are close to the subsistence level. The term economic growth is applied to economies already experiencing rising per capita incomes. In Rostow’s phraseology economic growth begins somewhere between the stage of take-off and the stage of maturity; or in Clark’s terms, between the stage dominated by primary and the stage dominated by secondary production. The most striking aspect in such development is generally the enormous decrease in the proportion of the labour force employed in agriculture. There are other aspects of growth. The decline in agriculture and the rise of industry and services has led to concentration of the population in cities, first in what has come to be described as the “core city” and later in the suburbs. In earlier years public utility investment (including investment in transportation) was more important than manufacturing investment, but in the course of growth this relationship was reversed. There has also been a rise in the importance of durable consumer goods in total output. In the U.S . experience, the rate of growth of capital goods production at first exceeded the rate of growth of total output, but later this too was reversed. Likewise, business construction or plant expenditures loomed large in the earlier period as an object of business investment compared to the recent era. Whether other countries will go through the same experience at similar stages in their growth remains to be seen.

Comparative growth rates for a group of developed countries show how uneven the process of growth can be. Partly this unevenness reflects the extraordinary nature of the 1913–50 period, which included two major wars and a severe and prolonged depression . There are sizable differences, however, in the growth rates of the various countries as between the 1870–1913 and 1950–73 periods and the period since 1973. For the most part, these differences indicate an acceleration in rates of growth from the first to the second period and a marked slowdown in growth rates from the second to the current period. Many writers have attributed this to the more rapid growth of business investment during the middle of the three periods.

The relatively high rates of growth for West Germany , Japan , and Italy in the post-World War II period have stimulated a good deal of discussion. It is often argued that “late starters” can grow faster because they can borrow advanced technology from the early starters. In this way they leapfrog some of the stages of development that the early starters were forced to move through. This argument is nothing more than the assertion that late starters will grow rapidly during the period when they are modernizing . Italy did not succeed in growing rapidly and thereby modernizing until after World War II. Together with Japan and Germany it also experienced a large amount of war damage. This has an effect similar to starting late, since recovery from war entails building a stock of capital that will, other things being equal, embody the most advanced technology and therefore be more productive and allow faster growth. The other part of this argument is the assertion that early starters are actually deterred from introducing on a broad front the new technology they themselves have developed. For example, firms in a country that industrialized early may be inhibited from introducing a more modern and efficient means of transportation on a broad scale because there is no guarantee that other firms handling the ancillary loading and unloading tasks will also modernize to make the change profitable.

Related to this is the problem of whether or not per capita income levels and their rates of growth in developed economies will eventually converge or diverge. For example, as per capita incomes of fast growers like the Italians and Japanese approach those of economies that developed earlier, such as the American and British, will the growth rates of the former slow down? Economists who answer in the affirmative stress the similarities in the changing patterns of demand as per capita income rises. This emphasis in turn implies that there is less and less chance to borrow technology from the industrial leaders as the income levels of the late starters approach those of the more affluent. Moreover, rising per capita incomes in an affluent society usually are accompanied by a shift in demand toward services. Therefore, so this argument goes, differences in income levels and growth rates between countries should eventually narrow because of the low growth in productivity in the service sector . The evidence is inconclusive. On the one hand, growth is a function of something more than the ability to borrow the latest technology; on the other hand, it is not clear that productivity must always grow at a slower rate in the service industries.

A rapidly increasing population is not clearly either an advantage or a disadvantage to economic growth. The American Simon Kuznets and other investigators have found little association between rates of population growth and rates of growth of GNP per capita. Some of the fastest growing economies have been those with stable populations. And in the United States , where the rate of growth of population has shown a downward historical trend, the rate of growth of GNP per capita has increased over the last century and a half. Another finding by Kuznets is that while GNP per capita in 1960 was substantially higher in the United States than in any European country, there was no significant difference in the per capita growth rates of all these countries over the period 1840 to 1960 as a whole. The conclusion is that the United States started from a higher per capita base; this may have been the result of its superior natural resources, especially its fertile agricultural land .

A State-Ranker’s Guide to Writing 20/20 Economics Essays

So, you want to know how to improve your preliminary and HSC economics essay...

Cory Aitchison

State Ranks (Economics and Chemistry) & 99.95 ATAR

1. Introduction to this Guide

So, you want to know how to improve your preliminary and HSC economics essay writing? Look no further! In this guide, I’ll be covering key tips to help YOU smash the structure, amaze with your analysis, conquer the contemporary, and ultimately master the mystery of maximising your marks.

My name is Cory Aitchison, currently one of the Economics tutors at Project Academy . I completed the HSC in 2018, achieving a 99.95 ATAR as well as two state ranks — 6th in economics and 12th in chemistry. Graduating from Knox Grammar School, I also topped my grade in economics and was awarded Dux of the School for STEM. Believe it or not, at the beginning of Year 11 I initially struggled with economics due to the transition in conceptual thinking required in approaching economic assessments in comparison to my other subjects such as English. However, through Year 11 and Year 12, I built up key tips and strategies — that I’ll be sharing with you in this guide — to help me not only consistently achieve top marks in my internal assessments, but to ultimately go on to achieve the results I did in the HSC.

2. The Correct Way to Write

First off, you need to understand something: HSC economics essays are NOT english essays! They aren’t scientific discussions, nor geography reports, nor historical recounts. They’re unique and often quite different from other essays that you might’ve done previously in high school. The style of writing and approach to answering questions can be confusing at first, but follow these tips and you’ll be ready in no time:

Phrasing should be understandable and concise

Unlike some subjects where sophisticated phrasing is beneficial to getting marks, HSC economics essays should emphasise getting your point across with clarity. This means don’t run your sentences on for too long, be aware of any superfluous words, and make sure you actually understand yourself what you’re trying to say in a sentence.

For example:

GOOD: “An increase in interest rates should lead to decreased economic growth.”

NOT GOOD: “As a result of a rise or increase in interest rate levels from their previous values, the general state of economic activity in the domestic economy may begin to decrease and subsequently indicate the resultant situation of a decrease in economic growth.”

“Understandable” does not mean slang or lacking in terminology

Just because you want to get a point across, doesn’t mean you should resort to slang. In fact, using economic terminology is a strong way to boost your standing in the eyes of the marker — if you use it correctly! Always make sure you use full sentences, proper English grammar, and try and incorporate correct economic terms where possible.

GOOD: “This was a detrimental outcome for the economy.”

NOT GOOD: “This was a pretty bad outcome for the economy.”

GOOD: “The Australian Dollar depreciated.”

NOT GOOD: “The Australian Dollar decreased in value.”

Analysis should be done using low modality

Modality just refers to the confidence of your language — saying something “will” happen is strong modality, whereas saying something “might” happen is considered low modality. Since a large portion of economics is about applying theory, we have to make sure that we are aware that we are doing just that — talking about the theoretical, and so we can’t say for sure that anything will happen as predicted.

Some useful words include:

May, Might, Should, Could, Can theoretically

Don’t use words like:

Must, Will, Has to, Always

3. How to use Statistics

“What’s most important is that this contemporary is used to bring meaning or context to your argument…”

Using contemporary (statistics) can often seem straightforward at first, but using it effectively is usually harder than it looks. Contemporary generally refers to applying real-world facts to your analysis to help strengthen (or weaken) the theoretical arguments. This can include many different statistics or pieces of information, including:

• Historic economic indicators, such as GDP, inflation, GINI coefficients, exchange rates, or unemployment rates
• Trends or economic goals, such as long-term GDP growth rates, or the stability band for inflation
• Names of economic policies, such as examples of fiscal or microeconomic policies
• Specifics of economic policies, such as the amount spent on infrastructure in 2017

Whatever statistics you deem relevant to include in your essay, what’s most important is that this contemporary is used to bring meaning or context to your argument — just throwing around random numbers to show off your memorisation skills won’t impress the marker, and in fact might appear as if you were making them up on the spot. Rather, your use of contemporary should actively improve your analysis.

GOOD: “Following a period of growth consistently below the long-term trend-line of 3%, the depreciation of the AUD to 0.71USD in 2017 preceded an increase in economic growth to a 10-year high of 3.4% in 2018.”

NOT GOOD: “Economic growth increased by 1 percentage point in 2017 to 2018”

NOT GOOD: “GDP was $1.32403 trillion in 2017”

GOOD: “The 2017 Budget’s Infrastructure Plan injected $42 billion into the economy — up 30% from 2016’s $31 billion, and 20% higher than the inflation-adjusted long-term expenditure.”

NOT GOOD: “The 2017 Budget’s Infrastructure Plan injected $42 billion into the economy”

That in mind, don’t think that these statistics have to be overly specific. As long as the general ideas gets across, it’s fine. You don’t need to say “$1,505,120” — just “$1.5 million” will suffice.

Ask yourself: if I get rid of the contemporary from my paragraphs, does the essay still have enough content?

Further, don’t get roped into the “contemporary trap” — where you fall into the mindset that “if I memorise all these statistics, my essay will get good marks”. Including numbers and contemporary at the expense of having a robust theoretical explanation and analysis will definitely be detrimental in getting you top marks. Particularly in trial exams and the HSC when you’ve got all these numbers floating in your head, it can be tempting to try and include as many as you can (often just because you can!). To avoid this, always try and focus your arguments on analysis and syllabus content first, contemporary second. Ask yourself: if I get rid of the contemporary from my paragraph, does the essay still have enough content?

4. Must Have Insightful “However”s

If you really want to extend your analysis and show the marker that you know your stuff, including insightful “however”s is a strong way to do it. What I mean by this is that for each of your paragraphs, try and include a counterpoint that highlights the flexible nature of economic theory. There are broadly two kinds of “however”s:

Theoretical “However”s

These are counterpoints that are based on theory — often there will be theoretical limitations for many of the concepts you come across in economics. It’s always important to include these limitations as it reinforces your knowledge of the actual content of economics.

“Although the Budget and fiscal policy can be effective at stimulating economic growth, it is also restricted by the “implementation time lag” limitation since it is only introduced annually.”

Contemporary “However”s

These are counterpoints that are based on contemporary — highlighting how although something should happen theoretically, this isn’t usually what is observed in reality. This can be particularly powerful in that it combines your knowledge of theory with your analysis of contemporary.

“Despite the expansionary stance that the RBA adopted in 2012–2016 for monetary policy, Australia’s annual GDP growth rate has remained below the trend rate of 3% — against the theoretical expectations. This could be attributed to factors such as …”

5. How to Interpret the Question

When you first look at a question, before you even put pen to paper, you need to come up with a plan of attack — how can you ensure that you answer the question correctly, and give the markers what they want? There are three main points to look for when interpreting essay questions:

Knowing your verbs

As you may (or may not) know, NESA has a bank of words that they like to pull from when writing questions, and these words impact how they want their question answered. These verbs should help steer your analysis onto the right path. For example:

Explain: “Relate causes and effects”

To answer these questions, you have to demonstrate a thorough understanding of how theory and events impact each other and the economy. This verb particularly emphasises the idea of a process — you need to be able to make clear links as to how each step leads to the next, rather than just jumping to the outcomes.

Analyse: “Draw out and relate implications”

These questions usually wants you to investigate the connections between different aspects of economic theory. Generally this involves showing a holistic understanding of how different areas (such as micro- and macroeconomic policies) come together to make a cohesive impact on the economy. It usually helps to think back to the syllabus and how the points are introduced when figuring out which ideas to link together.

Assess/Evaluate: “Make a judgement based on value/a criteria”

These require you to not only critically analyse a topic but also come to a conclusion given the arguments you provided. This type of question usually gets you to make a judgement of the effectiveness of some economic theory — such as the ability for economic policies to achieve their goals. Make sure you actually include this judgement in your answer — for example, say things like “strong impact”, “highly influential”, “extremely detrimental”.

Discuss: “Provide points for and/or against”

Similar to assess, discuss wants you to provide arguments towards and against a particular topic. Although it doesn’t require a specific judgement to be made, it does place greater emphasis on showing a well-rounded approach to the argument — providing relatively equal weightings towards both the positive and negative sides of the discussion.

Linking to the syllabus

When trying to understand what the question wants from you, I found the best way to approach it is to consider what points in the syllabus it is referring to (To do this, you need to have a solid understanding of the syllabus in the first place). Once you’ve located it, try drawing upon other topics in the vicinity of that dot point to help you answer the question.

For example, if the question mentions “trends in Australia’s trade and financial flows”, then you know from the syllabus that you probably need to talk about value, composition and direction in order to get high marks. Further, it may also be worth it to bring in ideas from the Balance of Payments, as this is the next dot point along in the syllabus.

Digging into the source

For essay questions that provide a source for you to include in your answer, this is another goldmine from which you can discern what the marker really wants. If the source mentions microeconomic policy, it probably wasn’t on accident! Even if it may not be obvious how to link that to the question immediately, try and draw upon your knowledge and implications and see if there’s a different angle that you might be missing.

6. Putting it All together — Structuring your essay

My essays usually consisted of four main parts: an introduction, a background paragraph, body paragraphs, and a conclusion.

Introduction

Your introduction should not be long. I rarely wrote an introduction longer than three sentences.

First sentence: Answer the question (thesis)

Try and answer the question, while including the main key words of the question in your answer. Don’t directly restate it — instead, try and add meaning to it in a way that represents what you’re trying to get across in your essay.

For example: if the question was “Assess the impact of microeconomic policy in improving economic growth in Australia”, my first sentence might be “Microeconomic policy has had a significant impact in increasing aggregate supply and thus long-term economic growth in Australia since the 1960s”.

Next sentences: Introduce your arguments/paragraphs

In this part, it’s fine to almost list your paragraphs — there’s no need to do a whole sentence explaining each. That’s what the paragraphs themselves are for.

For example: using the same question as above, my next sentence might be “Although trade liberalisation may have been detrimental for short-term growth in manufacturing, policies such as competition policy and wage decentralisation have been highly effective in fostering economic growth in Australia”.

Background Paragraph

The aim of a background paragraph is threefold: to get across the main theory that underpins your argument; to establish the economic context for your argument; and to show the marker that you “know your stuff”.

For example, if the essay was on monetary policy, you may want to describe the process of Domestic Market Operations (how the reserve bank changes the cash rate) in your background paragraph, so that you don’t need to mention it each time you bring up changing stances. Further, it may be good to showcase the current economic climate — such as GDP growth rate and inflation — to give context to your analysis in your essay.

Some ideas for what to include in this paragraph include:

• Key theory such as DMOs or the rationale for macroeconomic policies
• Economic indicators that provide context to the time period that you’re working in, such as growth rates, inflation, unemployment rates, exchange rates, cash rates, etc.
• A brief description of the recent Budget (if talking about fiscal policy), including the stance and outcome

Bear in mind that this paragraph shouldn’t be too long — it isn’t the focus of your essay! Instead, aim for around 100–150 words at most. At this point in your essay, it may also be good to include a graph (more on this later).

Body Paragraphs

There’s no set rule for how many body paragraphs to include in your essay — I generally aim for at least 4, but there’s no real limit to how many you can (or should) write! Unlike english essays, it’s totally acceptable to just split a paragraph in two if you feel like the idea is too large to be written in one paragraph (as long as each paragraph makes sense on its own).

When writing a paragraph, I usually follow this structure:

Topic sentence

This is where you answer the question, and outline your argument or idea for this paragraph. If you are doing a discuss/assess/evaluate essay, try and make your judgement or side obvious. For example: “Trade liberalisation has been detrimental in its impact on economic growth in manufacturing industries”.

These sentences are where you bring together the theory and contemporary to build up your argument. Remember, the theory should be the focus, and contemporary a bonus. Try and weave a “story” into your analysis if you can — you should be showing the marker how everything fits together, how causes lead to effects, and ultimately bringing together relevant economic concepts to answer the question. Feel free to also include graphs here when they help strengthen your argument.

Fit in your “however” statements here. For discuss questions, this however section may take up a larger part of the paragraph if you choose to showcase two opposing arguments together.

Link your argument back to your overarching thesis, and answer the question. Following on from your “however” statement, it can often be a good idea to use linking words such as “nevertheless”, “notwithstanding”, or “despite this” to show that taking into account your arguments presented in the “however” statement, the overarching idea for the paragraph still remains.

Like the introduction, your conclusion should not be overly long. Rather, it should briefly restate the arguments made throughout your essay, and bring them all together again to reinforce how these points help answer the question.

Aggregate Demand / Supply Graph

Graphs are a great way to add extra spice to your essay — not only does it help strengthen your explanations of economic theory, it also makes it look like you wrote more pages than you actually did! Graphs, such as aggregate demand graphs, business cycle graphs, and Phillips curves, can be great in reinforcing your ideas when you mention them in your essay. They usually come either in background paragraphs or body paragraphs, and it’s usually best to draw them about a quarter to a third of the page in size. It’s also good practice to label them as “Figure 1” or “Graph 1”, and refer to them as such in your actual paragraph.

Although they can be beneficial, don’t try and force them either. Not all essays have appropriate graphs, and trying to include as many as you can without regards for their relevance may come across negatively in the eyes of the marker.

8. How to Answer Source Questions

If your essay question involves a source, try and refer to it multiple times throughout your essay. For example, this can be in the background paragraph and two of your body paragraphs. Rather than just adding in an “…as seen in the source” to one of your sentences, try and actively analyse it — show the marker that you understand why they included it, and how it actually helps strengthen your arguments.

9. Plan You Essay

Don’t be afraid to use the first page of your answer booklet as a planning page. Taking a couple minutes before you answer the question to lay out your scaffold for body paragraphs is a great first step to helping ensure that you actually end up answering the question to the best of your abilities. It also serves as a great reminder to keep checking as you finish each paragraph to ensure that you actually wrote what you intended. Just make sure to make it clear to the marker that those scribbles on the page are just a plan, and not your actual essay!

10. How to Prepare for Essays in the Exam

I find it much better to prepare paragraphs and ideas that you can draw upon to help “build up” a response during the exam itself.

Don’t go into the exam with a pre-prepared essay that you are ready to regurgitate — not only are there too many possibilities to prepare for, but it’s also unlikely that you’ll actually answer the question well with a pre-prepared response.

Instead of memorising sets of essays before the exam, I find it much better to prepare paragraphs and ideas that you can draw upon to help “build up” a response during the exam itself. What I mean by this, is that in your mind you have a “bank of different paragraphs” and ideas from all the topics in the syllabus, and when you read the exam, you start drawing from different paragraphs here and there to best formulate a response that answers the question. This allows you to be flexible in answering almost any question they can throw at you.

On top of this, ensure you have a solid foundation in both the theory and contemporary — knowing what statistics or topics to include in your essay is useless knowledge unless you have the actual content to back it up.

Now that you know the basics of how to write a good HSC economics essay, it’s time to start practising! Have a go, try out different styles, and find what works best for you. Good luck!

If you would like to learn from state ranking HSC Economics tutors at Project Academy, we offer a 3 week trial for our courses. Click to learn more !

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How to Write an Economics Essay: Key Steps for Writing

What is Economics Essay?

How to choose an economics essay topic, good economics essay topics, economics essay format, how to write an economics essay, economics essay example.

If you've been assigned an economics essay, this article is the guide you need to structure it effectively. Start by carefully reading and analyzing the question, then follow these steps:

• Read Recommended Material : Begin with lecture notes and core textbooks and supplement with additional readings.
• Understand and Answer the Question : Reformulate the question in your own words if necessary, and stay focused on answering it directly.
• Show Understanding and Accuracy : Ensure your discussion is accurate, write in your own words, and avoid extensive quotes.
• Structure Your Essay : Include a clear introduction, body, and conclusion.
• Use Appropriate Methods and Detail : Integrate relevant models, diagrams, and methods.

If you still struggle after reading this article, PaperWriter can assist with your essay. Our online paper writer will ensure you receive a well-researched, quality paper!

An economics essay is a specialized form of academic writing that delves into economic concepts, theories, and issues. What sets it apart from other types of writing, for example, an article review example , is its focus on the economic aspects of various subjects, its emphasis on data analysis, and its application of economic principles to real-world scenarios.

• Economic Perspective: This kind of writing approaches topics from an economic perspective, considering factors like given price and consumer's desire. It analyzes economic phenomena, such as market behaviors, price changes, production, and consumption, to provide a deeper understanding of the subject matter and its impact on total demand.
• Data-driven: These essays often rely on data and statistics to support arguments and conclusions. Whether you're discussing the impact of inflation on a nation's economy or the correlation between education and income, data plays a central role in validating your points.
• Application of Economic Theories: They frequently apply economic theories and models to explain and predict economic behaviors. Understanding theories like supply and demand, elasticity, or market structures is crucial in constructing a compelling argument.
• Interdisciplinary Nature: They can intersect with various disciplines. For instance, you might write an economics essay on the environmental impact of government policies, which blends economic concepts with environmental science and policy analysis.
• Policy Implications: Many economics essays explore the policy implications of economic findings. They discuss how specific economic phenomena might influence government decisions or corporate strategies.
• Real-World Relevance: Unlike purely theoretical essays, economics papers are rooted in real-world issues. They seek to address current economic challenges, such as unemployment, inflation, trade deficits, and more, making them highly relevant to contemporary society.

Choosing the right economics essay topics is key to writing a great paper. Here's how to pick a topic that will set you up for success:

• Identify Your Interests - A topic you are passionate about will make the writing process more enjoyable and engaging, so think about the areas of economics that fascinate you.
• Review Course Material - Look through your lecture notes, textbooks, and assigned readings for topics that have been discussed in class. This way, you'll find a relevant and manageable topic.
• Consider Current Events - Economic issues in the news can be a great source of inspiration. Look for recent developments or ongoing debates that you can analyze.
• Focus on a Specific Question - Narrow down broad topics to a specific question or issue. For example, instead of writing about "inflation," focus on "the impact of inflation on small businesses in the last five years."
• Check for Available Resources - A good topic will have plenty of academic papers, statistics, and case studies to support your argument, so ensure there is enough data and research available on your chosen topic.
• Get Feedback - Discuss your ideas with your instructor or classmates to get feedback and refine your topic. This can help you choose a topic that is both interesting and feasible.

Choosing good extended essay topics for economics in 2024 can be an exciting opportunity to delve deep into a subject that interests you. Here are some intriguing ones from our nursing paper writing service :

The Impact of Digital Currencies on Traditional Banking: Analyze the rise of cryptocurrencies and their potential to disrupt traditional banking systems, considering factors affecting demand and market equilibrium.

Economic Consequences of Climate Change Policies: Investigate the economic effects of government policies aimed at combating climate change, including carbon taxes and emissions trading schemes, and their impact on market demand and equilibrium price.

The Gig Economy: Explore the economic implications of the gig economy, including its impact on traditional employment, income inequality, and labor regulations, as well as its influence on quantity demanded and supply curve dynamics.

The Economics of Healthcare Access: Analyze the factors affecting healthcare access and affordability, with a focus on healthcare systems in different countries, and how these factors relate to particular price points and market prices.

Income Inequality and Economic Growth: Investigate the relationship between income inequality and a nation's economic growth, examining how inequality affects productivity and overall economic well-being, potentially leading to shifts in aggregate demand.

The Economics of Renewable Energy Adoption: Study the economic factors driving the adoption of renewable energy sources and their impact on energy markets and sustainability, affecting supply curve dynamics and market equilibrium.

Trade and Economic Growth: Analyze the relationship between international trade and a country's economic growth, considering trade agreements, tariffs, and export-oriented policies and their influence on demand curve shifts.

The Economics of Education: Investigate the economic effects of education, such as its impact on earning potential, social mobility, and national economies, potentially influencing market demand for educational services.

Economic Impact of the Aging Population: Explore how the aging population affects economic systems, including issues related to healthcare, pensions, and workforce dynamics, leading to changes in market equilibrium.

The Economics of Big Tech Companies: Analyze the economic influence and implications of large technology corporations on markets, competition, and innovation, possibly affecting aggregate demand and market price for tech-related products and finance essay writing service .

An effective economics essay, much like other academic essays, follows a structured format that clearly presents your argument and supports it with evidence. Here's a detailed guide to formatting your paper:

Writing an economics essay involves a structured approach that clearly presents your argument and supports it with evidence. To write a clear essay, follow this economics essay structure:

Introduction

Your economics essay introduction should set the context and present your main argument. Here's how to structure it:

• Context Statement : Explain why the question is important. For example, "The impact of minimum wage laws on employment is a crucial issue in economic policy, affecting both workers and businesses."
• Answer the Question : Provide your main argument. For example, "Raising the minimum wage can lead to higher unemployment among low-skilled workers."
• Summarize Your Argument : Briefly outline the main points you will discuss. For example, "This essay will examine the effects of minimum wage increases on employment, consumer spending, and business costs."

The main body should logically develop your argument. Here's how to organize it:

• Paragraph Structure : Each paragraph should start with a clear topic sentence that addresses the question.
• Topic Sentence : "Higher minimum wages can increase unemployment among low-skilled workers."
• Reasoning and Evidence : "Studies have shown that businesses may reduce their workforce to offset increased labor costs. For instance, a study by Neumark and Wascher (2007) found that a 10% increase in the minimum wage could reduce employment among teenagers by 1-2%."

Continue this structure for each point you want to make, ensuring each paragraph flows logically to the next. Also, effective use of modifiers can make your arguments clearer and more precise. For example, instead of saying, "Minimum wage laws affect employment," you can say, "Stricter minimum wage laws significantly affect employment among low-skilled workers." You can find out more on how to use modifiers in our dedicated article.

In the conclusion part, summarize your argument and restate your main point. Highlight the significance of your findings.

• Summarize Your Argument : "In summary, while raising the minimum wage aims to improve living standards, it can also lead to higher unemployment, reduced consumer spending, and increased business costs."
• Restate Your Answer : "Therefore, raising the minimum wage can have negative effects on employment."
• Significance : "Understanding these impacts is crucial for policymakers to balance the benefits and drawbacks of minimum wage increases."

Stressed About Your Economics Essay Deadline?

Our experts are here to create top-notch writing for you, even when time is running out!

In the realm of economics, mastering intricate theories and principles can often prove challenging. That's why our expert college admission essay writing service has crafted a practical economics essay example to shed light on complex concepts and provide a clear roadmap for understanding the subject.

Title: The Impact of Minimum Wage on Income Inequality

Income inequality has become a pressing concern in modern economies. As the wealth gap widens, policymakers and economists are increasingly focusing on potential solutions to address this issue. One such solution is the adjustment of minimum wage rates. This essay delves into the complex relationship between minimum wage policies and income inequality, exploring the various mechanisms through which minimum wage can either exacerbate or mitigate income disparities. By analyzing empirical evidence and economic theories, we aim to provide a comprehensive view of the effects of minimum wage on income inequality.

Minimum Wage and Low-Income Workers

Minimum wage policies have a direct impact on low-income workers. When the minimum wage is increased, these workers experience a boost in their earnings. This, in theory, should reduce income inequality, as those with the lowest incomes see an increase in their wages. For example, studies by Smith and Johnson (2020) found that a $1 increase in the minimum wage led to a significant rise in the income of low-wage workers, contributing to a reduction in income inequality.

Effects on Employment and Income Inequality

However, the relationship between minimum wage and income inequality is more intricate. Critics argue that raising the minimum wage can lead to job losses, particularly in industries with tight profit margins. This raises concerns about unemployment among low-skilled workers. For instance, the Congressional Budget Office (CBO) projected that a $15 minimum wage, if implemented, could lead to the loss of 1.3 million jobs by 2024.

Regional Disparities

Another aspect to consider is regional disparities in the cost of living. A uniform minimum wage may not account for variations in living costs across different regions. In high-cost metropolitan areas, the minimum wage may still fall short of providing a livable income, contributing to income inequality.

Income Substitution

Some argue that the impact of minimum wage on income inequality is offset by a phenomenon known as 'income substitution.' When the minimum wage is increased, employers may reduce non-wage benefits, such as health insurance or retirement contributions, to offset increased labor costs. As a result, the total compensation package for low-wage workers may not improve substantially, and income inequality may persist.

Counter Arguments

It's essential to acknowledge counter arguments as well. Proponents of minimum wage increases argue that they not only benefit low-wage workers but also stimulate economic activity. When low-income individuals earn more, they tend to spend more, boosting demand and potentially leading to job creation. Furthermore, minimum wage policies can improve overall labor productivity by incentivizing workers to stay in their jobs longer, thus enhancing their skills and value in the labor market.

In conclusion, the relationship between minimum wage policies and income inequality is multifaceted. While increasing the minimum wage can directly benefit low-income workers and potentially reduce income inequality, it is crucial to consider the broader implications. The impact on employment, regional disparities, and the potential for income substitution should all be taken into account when evaluating the effectiveness of minimum wage policies in addressing income inequality. Economists and policymakers must carefully balance the desire to uplift low-wage workers with the need to maintain a competitive labor market and promote economic growth.

• Smith, A., & Johnson, B. (2020). The Impact of Minimum Wage on Income Inequality. Journal of Economic Research, 45(3), 311-328.
• Congressional Budget Office (CBO). (2021). The Effects of a Minimum-Wage Increase on Employment and Family Income. https://www.cbo.gov/publication/56193

As we wrap up this article, let's quickly recap the main steps for writing an economics essay:

• Choose a topic that interests you and aligns with your course.
• Read recommended materials thoroughly.
• Reformulate the essay question in your own words.
• Structure your essay with a clear outline.
• Use models, diagrams, and data to support your arguments effectively.

Last but not least, always rely on our expert help—PaperWriter offers professional assistance for crafting a strong essay.

How Do You Start an Economic Essay?

To start an economic essay, begin with a clear introduction that includes a thesis statement. Briefly outline the main points you will discuss in your essay. Include a hook, such as a surprising statistic or a relevant quote, to engage the reader and make sure your thesis statement clearly presents the argument or question you will address in your essay.

How Do I Write an Economics Essay?

To write an economics essay, follow these steps:

• Research : Gather relevant data and sources.
• Outline : Plan the structure of your essay.
• Introduction : State your thesis and main points.
• Body : Develop each point with evidence and analysis.
• Conclusion : Summarize your findings and restate your thesis.

Is an Economics Essay in APA or MLA?

Economics essays are typically written in APA format. This format includes in-text citations and a reference list at the end. However, always check your assignment guidelines or ask your instructor, as some institutions may prefer MLA or another citation style.

• updated writing steps for choosing a topic and writing essays;
• updated format;
• added FAQs.
• Essay Writing in Economics -Useful Advice . (n.d.). https://www.st-andrews.ac.uk/assets/university/schools/school-of-economics-and-finance/documents/advice-essay-writing.pdf
• ‌ How to Structure Your Economics Essay . (n.d.). https://www.ibmastery.com/blog/how-to-structure-your-economics-essay

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Economics Essay Guide

Isaac Dela Torre

Monday 17th, July 2017

One of the hardest parts of the whole economics course, besides the enormous amount of dry content we are expected to know, is actually figuring out a way to write all of it in an economics essay that “synthesises knowledge, integrates economic concepts and demonstrates a clear understanding of every topic.”

With Trials looming, I thought I would prepare a quick guide on how best to approach economics essays!

The most important thing before starting to write an essay is to look at the directive verb. This should dictate how you structure your response. You should be familiar with them for all your subjects. They tend to pop up a lot in short answer questions as well!! If you need to refresh your memory check out this glossary of key words .

To show you how to write an economics essay, I’ll be integrating an essay I wrote in my trial:

“For an economy other than Australia, discuss and evaluate the strategies used to promote economic growth and development ”

First, let’s break down the question:

Discuss – Provide points for and against.

Evaluate – Provide a judgment based on criteria.

Strategies – This is asking us for policies the government put into place.

Economic growth and Development – It is important to know the difference between the two (they are defined in the essay) as well as the criteria for each so that you can properly evaluate if the strategies lead to Economic growth and development.

The first thing you should  always  do is PLAN! You should always brain dump anything your mind thinks of then assess what you have written, what is relevant, what your structure will be. Here is a picture of my planning page for this essay.

Introduction

The introduction to your essay is incredibly important. It’s your marker’s first impression of your whole economics essay; make a sh*t one and your marker will be slightly annoyed when reading the rest of it. Markers want succinct and sophisticated introductions that provide a clear outline of your essay, as well as your stance on the question. So how do you make sure your marker loves your introduction?

Your introduction should always start with a definition of the key words in the question. This shows the marker that you know exactly what you are talking about. It can also help with clarity as you have already established what the economic concepts are.

The next sentence should address the question and be your “ thesis ” for your essay. This basically outlines your argument and your stance. This is especially evident if it is a question that requires a judgement.

Your next few sentences should outline what will be in your subsequent paragraphs – this can be done fairly briefly as you will explain more within the paragraphs.

Finally, sum up your introduction by linking your paragraphs to your thesis and the question.  

Economic growth is defined as an increase in the total value of goods and services produced by an economy over a period of time, whereas economic development is a qualitative measure of a countries wellbeing based on quality of life which is measured through the Human Development Index (HDI) using criteria of GNI/capita, mean years of schooling and life expectancy. The Chinese economy has undergone major structural reforms in order to promote economic growth and development by embracing globalisation. Economic growth and development have successfully been increased through strategies such as the Open-Door Policy, Agricultural Reforms and Special Economic Zones. These changes have seen increases in China’s GDP growth as well as HDI and other development attributes. More over these policies benefits have not been shared equally as there a large extent of inequality within China.

Trend Analysis

The next paragraph should always be a trend analysis outlining the trends in whatever economic concept you are being asked. You should include what has happened to the concept in recent years as well as why it happened.

This includes the direction (increase/decrease), a high point, a low point, an average and a current point. This should be repeated for as many trends as necessary, dictated by the question. For the question posed, it asks about Economic growth as well as development in a country other than Australia. This section gives the marker the context of what you are talking about. We’ve all been told to use statistics and trends in our essays. This is where the bulk of them should go.

Prior to Deng’s rule, China was a closed economy having growth rates less than 5% as well as increasing poverty and low development. After and during Deng’s reign, the policies aforementioned boosted aggregate demand and supply seeing an increase in GDP growth that averaged 11.9% for 3 decades and reached a high of 16% in 1995 and 14% in 2007, maintaining high growth until the GFC which unlike other economies slowed but did not go into negative at 7%. GDP growth is still high but has significantly slowed since then currently at 6.9% as at 10/8/16. Due to GDP growth China’s HDI increased from 0.432 in 1980 and currently at 0.732 in 2015 showing rising development within China; reinforced by 400 million less people in absolute poverty (less than $1.25 USD a day). However, income inequality has significantly worsened within China, with the combined income of households in eastern coastal regions have 2.7x more income than inland regions.

The body of your essay is where you really start to explain the different concepts and apply them to real life global events. You’ll find that these are incredibly similar to English essays in your paragraph structure. Hopefully they will be a little easier to write!

You should always start each paragraph with a topic sentence outlining what you will be discussing.

Then you should include a definition (if applicable) of whatever the concept in this paragraph is; you should then provide an explanation of what it is and how it works. You should try to provide diagrams to show what you are talking about and explain the concepts more clearly. Never just throw in a diagram without explaining it!

The next few sentences vary depending on the question. They usually show the cause or effect of something; or show  advantages and disadvantages.

Just like how you have quotes in an English essay as textual evidence, you need to show evidence that what you are saying is true. Each time you show a cause/effect of something or provide an advantage/disadvantage, use an example from real life to prove what you are saying is true.

You should repeat steps 3 and 4 as many times as you need. With questions that ask for an explanation of how something leads to another thing, make sure you provide every necessary step in order to get there.

Finally, end each of your paragraphs with a linking sentence back to the question.

Here’s an example body paragraph to the above question:

Special Economic Zones within China have promoted both economic growth and development. Through reforms to create special economic zones along coastal ports; Transnational Corporation investment was incentivised through tax cuts and the abundant labour supply (loose legislation). From increased investment through FDI flows, Aggregate Demand (C + I + G + X – M) was boosted as seen in figure 1 where an increase in Aggregate demand results in an increase of Output from Q to Q1. This saw an increase in economic growth from 4% to approximately 7% in 1980s as investment contributed 40% within this time. Due to FDI, China’s employment within that area increased which gave these people higher incomes that could spent on food, shelter, education or healthcare, improving economic development. Businesses in China increased production of mainly manufactured foods which increased Aggregate Supply in the economy as seen in figure 2 where an increase of Aggregate supply from AS to AS1 creates an increase in GDP from Q1 to Q2.

This increase facilitated an increase in productive capacity and thus fostered economic growth. Through this policy taxation was collected from TNC’s which was used by the Government to fund expenditure in healthcare, infrastructure, education which significantly improved development throughout China. However, inequality between the coastal SEZ regions and rural areas has resulted, seeing 40% of the population still living in absolute/extreme poverty and the Lorenz gap widening as seen in figure 3.

 Thus, the special economic zone strategy has promoted both economic growth and development.

You’ve smashed out a stellar introduction, given the marker flawless body paragraphs that clearly explain economic theory and relationships and shown you are up to date with contemporary economics; the only thing left to do is to conclude your essay in a way that solidifies your greatness in the marker’s mind. So, how do you do it?

Your first sentence should be a restating of your thesis that directly links back to the question.

Your second few sentences should be a really quick summary of what you talked about in each of your paragraphs and how they relate to your argument as well as the question.

Lastly, you should sum up your argument again, taking into account any counter arguments.

Ultimately, China’s strategies to open up the economy to global markets and increase efficiency have successfully facilitated economic growth and development. Policies including the Open-Door Policy, Special Economic Zones, Agricultural Reforms and Taxation Reforms have created higher growth levels and development levels than China has previously had; enabling the transition to an emerging economy soon to be advanced. Whilst many benefits have come to China’s popular, inequality has been created between Eastern and Western/Northern provinces, seeing a significant amount of China’s population still in extreme poverty; even so, overall strategies have been effective.  

And that’s it! You’ve delivered an amazing Band 6 worthy Economics essay, and you didn’t even break a sweat!

I really hope you found this guide helpful. I know that when I first started writing economic essays I was so confused as to what to talk about. How many stats to have, how to integrate trends and diagrams… But I really hope you are a little bit more at ease now and have some direction. By all means, this is not the be all and end all structure; feel free to mix up body paragraphs and go into depth about one particular concept or split up all of your advantages/disadvantages – this is just a simple rough guide that can be moulded to suit your particular style.

As always, if you need help or clarification on anything, be sure to come and ask me!

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What is economic growth? And why is it so important?

The goods and services that we all need are not just there – they need to be produced – and growth means that their quality and quantity increase..

Good health, a place to live, access to education, nutrition, social connections, respect, peace, human rights, a healthy environment, and happiness. These are just some of the many aspects we care about in our lives.

At the heart of many of these aspects that we care about are needs for which we require particular goods and services . Think of those that are needed for the goals on the list above – the health services from nurses and doctors, the home you live in, or the teachers who provide education.

Poverty, prosperity, and growth are often measured in monetary terms, most commonly as people’s income. But while monetary measures have some important advantages, they have the big disadvantage that they are abstract. In the worst case, monetary measures – like GDP per capita – are so abstract that we forget what they are actually about: people’s access to goods and services.

The point of this text is to show why economic growth is important and how the abstract monetary measures tell us about the reality of people’s material living conditions around the world and throughout history:

• In the first part, I want to explain what economic growth is and why it is so difficult to measure.
• In the second part, I will discuss the advantages and disadvantages of several measures of growth, and you will find the latest data on several of these measures so that we can see what they tell us about how people’s material living conditions have changed.

What are these goods and services that I’m talking about?

Have a look around yourself right now. Many of the things you see are products that were produced by someone so that you can use them: the trousers you are wearing, the device you are reading this on, the electricity that powers it, the furniture around you, the toilet that is nearby, the sewage system it is connected to, the bus or car or bicycle you took to get where you are, the food you had this morning, the medications you will receive when you get sick, every window in your home, every shirt in your wardrobe, and every book on your shelf.

At some point in the past, many of these products were not available. The majority did not have access to the most basic goods and services they needed. A recent study on the history of global poverty estimates that just two centuries ago, roughly three-quarters of the world "could not afford a tiny space to live, food that would not induce malnutrition, and some minimum heating capacity.” 1

Let’s look at the history of the last item on that list above, books.

A few centuries ago, the only way to produce a book was for a scribe to copy it word-for-word by hand. Book production was a slow process; it took a scribe about eight months of daily work to produce a single copy of the Bible. 2

It was so laborious that only very few books were produced. The chart shows the estimates of historians. 3

But then, in the 15th century, the goldsmith Johannes Gutenberg combined the idea of movable letters with the mechanism that he knew from the wine presses in his hometown. He developed the printing press. Gutenberg developed a new production technology, and it changed things dramatically. Instead of spending months to produce one book, a worker was now able to produce several books a day.

As the printing press spread across Europe, book production soared. Books, which were previously only available to a tiny elite, became available to more and more people.

This is one example of how growth is possible and what economic growth is : an increase in the production of goods and services that people produce for each other.

A list of goods and services that people produce for each other

Before we get to a more detailed definition of economic growth, it’s helpful to remind ourselves of the astonishingly wide range of goods and services that people produce. I think this is helpful because measures of economic output can easily become abstract. This abstraction means we easily lose the mental connection to the goods and services such measures actually talk about.

This list of goods and services isn’t meant as a definitive list, but it helped me to think about the relevance of poverty and growth: 4

At home: Light in your home at night; the sewage system; a shower; vacuum cleaner; fridge; heating; air conditioning; electricity; windows; a toilet – even a flush toilet; soap; a balcony or a garden; running water; warm water; cutlery and dishes; a hut – or even a warm apartment or house; an oven; sewing machine; a stove (that doesn’t poison you ); carpet; toilet paper; trash bags; music recordings or even online streaming of the world’s music and film; garbage collection; radio; television; a washing machine; 5 furniture; telephone; a comfortable bed, and a room for one’s own.

Food: The most fundamental need is to have enough food. For much of human history, a large share of people suffered from hunger , and millions still do .

But we also need to have a richer and more varied diet to get all of the nutrients we need. Unfortunately, billions still suffer from micronutrient deficiency .

Also, think of clean drinking water; reliable markets and stores with a wide range of available goods; food that rarely poisons you (pasteurized milk, for example); spices; tea and coffee; kitchen utensils and practical ingredients (from a bag of flour to canned soups or a yogurt); chocolate and sweets; fresh fruit and vegetables; bread; take-away food or the possibility to go to a restaurant; ways to protect your food from spoiling (from the cold chain that delivers the goods to the cellophane to wrap it with); wine or beer; fertilizer ( very important); and tractors to work the fields.

Knowledge: Education from primary up to university level; books; data that allows us to understand the world around us; newspapers; vocational training; kindergartens; and scientific knowledge to understand ourselves and the world around us.

Infrastructure: Public transportation with buses, subways, and trains; roads; paved roads; airplanes; bridges; financial services (including bank accounts, ATMs, and credit cards); cities; a network of competent workers that can help you to fix problems; postal services (that delivers fast); national parks; street cleaning; public swimming pools (even private pools); firefighters; parks; online shopping; weather forecasts; and a waste management system.

Tools and technologies: Pencils, ballpoint pens, and paper; lawnmowers; cars; car mechanics; bicycles; power tools like drills (even battery-powered ones); a watch; computers and laptops; smartphones (with GPS and a good camera); being able to stay in touch with distant friends or family members (or even visiting them); GPS; batteries; telephones and mobiles; video calls; WiFi; and the internet right here.

Social services: Caretakers for those who are disabled, sick, or elderly; protection from crime; non-profit organizations financed by the public, by donations or by philanthropies; insurance (against many different risks); and a legal system with judges and lawyers that implement the rule of law.

There is also a wide range of transfer payments, which in themselves are not services (they are transfers) but which become more affordable as a society becomes more prosperous: sick leave and disability benefits; unemployment benefits; and being able to help others with a regular donation of some of your income to an effective charity . 6

Life and free time : tents; travel and holidays; surfboards; skis; board games; hotels; playgrounds; children’s toys; courses to learn hobbies (from painting to musical instruments or courses on the environment around us); a football; pets; the cinema, theater or a music concert; clothes (even comfortable and good-looking ones that keep you warm and protect you from the rain); shoes (even shoes for different purposes); shoe repair; the contraceptive pill and the ability to choose if and when to have children; sports classes from rock climbing to pilates and yoga; cigarettes (not all goods that people produce for each other are good for them); 7 a musical instrument; a camera; and parties to celebrate life.

Health and staying well: Dentists; antibiotics; surgeries; anesthesia; mental health care from psychologists and psychiatrists; vaccines; public sewage; a haircut; a massage; midwives; ambulances; modern medicine; band-aids; pharmaceutical drugs; sanitary pads; toothbrushes; dental floss (some do floss); disinfectants; glasses; sunglasses; contact lenses; hearing aids; and hospitals – including very well-equipped, modern hospitals that offer CT scans, which include intensive care units and allow heart or brain surgery or organ transplants.

Specific needs and wishes: Most of the products listed above are generally helpful to people. But often, the goods and services that are most important to one individual are very specific.

As I’m writing this, I have a big cast on my left leg after I broke it. These days, I depend on products that I had no use for just three weeks ago. To move around, I need two long crutches, and to prevent thrombosis, I need to inject a blood thinner every day. After I broke my leg, I needed the service of nurses and doctors. They had to rely on a range of medical equipment, such as X-ray machines. To get back on my feet, I might need the service of physiotherapists.

We all have very specific needs or wishes for particular goods and services. Some needs arise from bad luck, like an injury. Others are due to a new phase in life – think of the specific goods and services you need when you have a baby or when you take care of an elderly person. And yet others are due to specific interests – think of the needs of a fisherman, or a pianist, or a painter.

All of these goods and services do not just magically appear. They need to be produced. At some point in the past, the production of most of them was zero, and even the most essential ones were extremely scarce. So, if you want to know what economic growth means for your life, look at the list above.

What is economic growth?

So, how can we define what economic growth is?

A definition that can be found in so many publications that I don’t know which one to quote is that economic growth is “an increase in the amount of goods and services produced per head of the population over a period of time.”

The definition in the Oxford Dictionary is almost identical: “Economic growth is the increase in the production of goods and services per head of population over a stated period of time”. And the definition in the Cambridge Dictionary is similar. It defines growth as “an increase in the economy of a country or an area, especially of the value of goods and services the country or area produces.”

In the following footnote, you find more definitions. Bringing these definitions together and taking into account the economic literature more broadly, I suggest the following definition: Economic growth is an increase in the quantity and quality of the economic goods and services that a society produces.

I prefer a definition that is slightly longer than most others. If you want a shorter definition, you can speak of ‘products’ rather than ‘goods and services’, and you can speak of ‘value’ rather than mentioning both the quantity and quality aspects separately.

The most important change in quantity is from zero to one when a new product becomes available. Many of the most important changes in history became possible when new goods and services were developed; think of antibiotics, vaccines, computers, or the telephone.

You find more thoughts on the definition of growth in the footnote. 8

What are economic goods and services?

Many definitions of economic growth simply speak of the production of ‘goods and services’ collectively. This sidesteps a key difficulty in its definition and measurement. Economic growth is not concerned with all goods and services but with a subset of them: economic goods and services.

In everything we do – even in our most mundane activities – we continuously ‘produce’ goods and services in some form. Early in the morning, once we’ve brushed our teeth and made ourselves toast, we have already produced one service and one good. Should we count the tooth-brushing and the toast-making towards the economic production of the country we live in? The question of where to draw the line isn’t easy to answer. But we have to draw the line somewhere. If we don’t, we end up with a concept of production that is so broad that it becomes meaningless; we’d produce a service with every breath we take and every time we scratch our nose.

The line that we have to draw to define the economic goods and services is called the ‘production boundary’. The sketch illustrates the idea. The production boundary defines those goods and services that we consider when we speak about economic growth.

For a huge number of goods or services, there is no question that they are of the ‘economic’ type. But for some of them, it can be complicated to decide on which side of the production boundary they fall. One example is the question of whether the production of illegal goods should be included. Another is whether production within a household should be included – should we consider it as economic production if we grow tomatoes in our backyard and make soup from them? Different authors and different measurement frameworks have given different answers to these questions. 9

There are some characteristics that are helpful in deciding on which side of the boundary a particular product falls. 10 Economic goods and services are those that can be produced and that are scarce in relation to the demand for them. They stand in contrast to free goods, like sunlight, which are abundant, or those many important aspects in our lives that cannot be produced, like friendships. 11 Our everyday language has this right: we don’t refer to the sun or our friendships as a good or service that we ‘produce’.

An economic good or service is provided by people to each other as a solution to a problem they are faced with, and this means that they are considered useful by the person who demands it.

A last characteristic that helps decide whether you are looking at an economic product is “delegability”. An activity is considered to be production in an economic sense if it can be delegated to someone else. This would include many of the goods and services on that long list we considered earlier but would exclude your breathing, for example.

Because economic goods are scarce in relation to the demand for them, human effort is required to produce them. 12 A shorter way of defining growth is, therefore, to say that it is an increase in the production of those products that people produce for each other.

The majority of goods and services on that long list above are uncontroversially of the economic type – everything from the light bulbs and furniture in your home to the roads and bridges that connect your home with the rest of the world. They are scarce in relation to the demand for them and have to be produced by someone; their production is delegable, and they are considered useful by those who want them.

It’s worth recognizing that many of the difficulties in defining the production boundary arise from the effort to make measures of economic production as comparable as possible.

To give just one concrete example of the type of considerations that make the discussion about specific definitions so difficult, let’s look at how the production boundary is drawn in the housing sector.

Imagine two countries that are identical except for one aspect: home ownership. In Country A, everyone rents their homes, and the total sum of annual rent amounts to €2 billion per year. In Country B, everyone owns their own home, and no one pays rent. To provide housing is certainly an economic service, but if we only counted monetary transactions, then we would get the false impression that the value of goods and services in Country A is €2 billion higher than in Country B. To avoid such misjudgment, the production boundary includes the housing services that are provided without any monetary transactions. In National Accounts, statisticians take into account the “imputed rental value of owner-occupied housing” – those households who own their home get assigned an imputed rental value. In the imagined scenario, these imputed rents would amount to €2 billion in Country B so that the prosperity of people in these two countries would be judged to be identical.

It is the case more broadly that National Account figures (like GDP) do include important non-market goods and services that are not included in household survey measures of people’s income. GDP does not only include the housing services by owner-occupied housing but also the provision of most goods and services that are provided by the government or nonprofit institutions.

How can we measure economic growth?

Many discussions about economic growth are extraordinarily confusing. People often talk past one another.

I believe the key reason for this is that the discussion of what economic growth is gets muddled up with how it is measured .

While it is straightforward enough to define what growth is, measuring growth is very, very difficult.

In the worst cases, measures of growth are mixed up with a definition of growth. Growth is often measured as an increase in income or inflation-adjusted GDP per capita. But these measures are not the definition of it – just like life expectancy is a measure of population health but is certainly not the definition of population health.

To see how difficult it is to measure growth, take a moment to think about how you would measure it. How would you determine whether the quantity and quality of all economic goods and services produced by a society increased or decreased over time?

Finding a measure means that you have to find a way to express a huge amount of relevant information in a single metric. As the sketch shows, you have to first measure the quantity and quality of all the many, many goods and services that get produced and then find a way to aggregate all of these measurements into one summarizing metric. No matter what measure you propose for such a difficult task, there will always be problems and shortcomings in any proposal you might make.

In the following section, I will show four possible ways of measuring growth and present some data for each of them to see how they can inform us about the history of material living conditions.

Measuring economic growth by tracking access to particular goods and services

One possible way to measure growth is to make a list of some specific products that people want and to see what share of the population has access to them.

We do this very often at Our World in Data . The chart here shows the share of the world population that has access to four basic resources. All of these statistics measure some particular aspect of economic growth.

You can switch this chart to any country in the world via the “Change country” option. You will find that, judged by this metric, some countries achieved rapid growth – like Indonesia – while others only saw very little growth, like Chad.

The advantage of measuring growth in this way is that it is concrete. It makes clear what exactly is growing, and it’s clear which particular goods and services people gain access to.

The downside is that it only captures a small part of economic growth. There are many other goods and services that people want in addition to water, electricity, sanitation, and cooking technology. 13

You could, of course, expand this approach of measuring growth to many more goods and services, but this is usually not done for both practical and ethical considerations:

One practical reason is that a list of all the products that people value would be extremely long. Keeping lists that track people’s access to all products would be a daunting task: hundreds of different toothbrushes, thousands of different dentists, hundreds of thousands of different dishes in different restaurants, and many millions of different books. 14 If you wanted to measure growth across all goods and services in this way, you’d soon employ half the country in the statistical office.

In practice, any attempt to measure growth as access to particular products, therefore, means that you look only at a relatively small number of very particular goods and services that statisticians or economists are interested in. This is problematic for ethical reasons. It should not be up to the statisticians or economists to determine which few products should be considered valuable.

You might have realized this problem already when you read my list at the beginning of this text. You might have disagreed with the things that I put on that list and thought that some other goods and services were missing. This is why it is important to track incomes and not just access to particular goods: measuring people’s income is a way of measuring the options that they have rather than the choices that they make. It respects people’s judgment to decide for themselves what they find most important for their lives.

On our site, you find many more such metrics of growth that capture whether people have access to particular goods and services:

• This chart shows the share of US households having access to specific technologies.
• This chart shows the share that has health insurance.
• This chart shows access to schools.

Measuring economic growth by tracking the ratio between people’s income and the prices of particular goods and services

To measure the options that a person’s income represents, we have to compare their income with the prices of the goods and services that they want. We have to look at the ratio between income and prices.

The chart here does this for one particular product – books – and brings us back to the history of growth in the publishing sector that we started with. 15 Shown is the ratio between the average income that a worker receives and the price of a book. It shows how long the average worker had to work to buy one book. Note that this data is plotted on a logarithmic axis.

Before the invention of the printing press in the 15th century, the price was often as high as several months of work. The fact that books were unaffordable for almost everyone should not be surprising. It corresponds to what we’ve seen earlier that it took a scribe several months to produce a single book.

The chart also shows how this changed when the printing press increased the productivity of publishing. As the labor required to produce a book declined from many months of work to less than a day, the price fell from months of wages to mere hours.

This shows us how an innovation in technology raises productivity and how an increase in production makes it more affordable. How it increases the options that people have.

Global inequality: How do incomes compare in countries around the world?

In the previous section, we measured growth as the ratio between income and the price of one particular good. But of course, we could do the same for all the many goods and services that people want. This ratio – the ratio between the nominal income that people receive and the prices that people have to pay for goods and services – is called ‘real income’ . 16

Real income = Nominal income / price of goods and services

Real income grows when people’s nominal income increases or when the prices of goods and services decrease.

In contrast to many of the other metrics on Our World in Data, a person’s real income does not matter for its own sake but because it is a means to an end. A means to many ends, in fact.

Economic growth – measured as an increase in people’s real income – means that the ratio between people’s income and the prices of what they can buy is increasing: goods and services become more affordable, and people become less poor. It is because a person has more choices as their income grows that economists care so much about these monetary measures of prosperity.

The two most prominent measures of real income are GDP per capita and people’s incomes, as determined through household surveys.

They are shown in this chart.

Before we get back to the question of economic growth, let’s see what these measures of real income tell us about the economic inequality in the world today.

Both measures show that global inequality is very large. In a rich country like Denmark, an average person can purchase goods and services for $54 a day, while the average Ethiopian can only afford goods and services that cost $3 per day.

Both measures of real incomes in this chart are measured in international dollars, which means that they take into account the level of prices in each country (using purchasing power parity conversion factors). This price adjustment is done in such a way that one international-$ is equivalent to the purchasing power of one US-$ in the US . An income of int.-$3 in Ethiopia, for example, means that it allows you to purchase goods and services in Ethiopia that would cost US-$3 in the US . All dollar values in this text are given in international dollars, even though I often shorten it to just the $-sign.

If you are living in a rich country and you want to have a sense of what it means to live in a poor country – where incomes are 20 times lower – you can imagine that the prices for everything around you suddenly increase 20-fold. 17 If all the things you buy suddenly get 20-times more expensive your real income is 20-times lower. A loaf of bread doesn’t cost $2 but $40, a pair of jeans costs $400, and an old car costs $40,000. If you ask yourself how these price increases would change your daily consumption and your day-to-day life, you can get a sense of what it means to live in a poor country.

The two shown measures of real income differ:

• The data on the vertical axis is based on surveys in which researchers go from house to house and ask people about their economic situation. In some countries, people are asked about their income, while in other countries, people are asked about their expenditure – expenditure is income minus savings. In poor countries, these two measures are close to each other since poor people do not have the chance to save much.
• On the other hand, GDP per capita starts at the aggregate level and divides the income of the entire economy by the number of people in that country. GDP per capita is higher than per capita survey income because GDP is a more comprehensive measure of income. As we’ve discussed before, it includes an imputed rental value of owner-occupied housing and other differences, such as government expenditure.

Income as a measure of economic prosperity is much more abstract than the metrics we looked at previously. The comparison of incomes of people around the world in this scatterplot measures options, not choices. It shows us that the economic options for billions of people are very low. The majority of the world lives on very low incomes of less than $20, $10, or even $5 per day. In the next section, we’ll see how poverty has changed over time.

• GDP per capita vs. Daily income of the poorest 10%
• GDP per capita vs. Daily average income

Global poverty and growth: How have incomes changed around the world?

Economic growth, as we said before, is an increase in the production of the quantity and quality of the economic goods and services that a society produces. The total income in a society corresponds to the total sum of goods and services the society produces – everyone’s spending is someone else’s income. This means that the average income corresponds to the level of average production, so that the average income in a society increases when the production of goods and services increases.

Average production = average income

In this final section, let’s see how incomes have changed over time, first as documented in survey incomes and then via GDP per capita.

Measuring economic growth by tracking incomes as reported in household surveys

The chart shows the income of people around the world over time, as reported in household surveys. It shows the share of the world population that lives below different poverty lines: from extremely low poverty lines up to $30 per day, which corresponds to notions of poverty in high-income countries .

Many of the poorest people in the world rely on subsistence farming and do not have a monetary income. To take this into account and make a fair comparison of their living standards, the statisticians who produce these figures estimate the monetary value of their home production and add it to their income.

Again, the prices of goods and services are taken into account: these are measures of real incomes. As explained before, incomes are adjusted for price differences between countries, and they are also adjusted for inflation. As a consequence of these two adjustments, incomes are expressed in international dollars in 2017 prices, which means that these income measures express what you would have been able to buy with US dollars in the US in 201 7.

Global economic growth can be seen in this chart as an increasing share of the population living on higher incomes. In 2000 two thirds of the world lived on less than $6.85 per day. In the following 19 years, this share fell by 22 percentage points.

In 2020 and 2021 — during the economic recession that followed the pandemic — the size of the world economy declined, and the share of people in poverty increased . As soon as global data for this period is available, we will update this chart.

The data shows that global poverty has declined, no matter what poverty line you choose. It also shows that the majority of the world still lives on very low incomes. As we’ve seen, we can describe the same reality from the production side: the global production of the goods and services that people want has increased, but there is still not enough production of even very basic products. Most people in the world do not have access to them.

An advantage of household survey data over GDP per capita is that it captures the inequality of incomes within a country. You can explore this inequality with this chart by switching to see the data for an individual country via the ‘Change country’ button.

Measuring economic growth by tracking GDP per capita

GDP per capita is a broader measure of real income, and in contrast to survey income, it also takes government expenditures into account. A lot of thinking has gone into the construction of this very prominent metric so that it is comparable not only over time but also across countries. This makes it especially useful as a measure to understand the economic inequality in the world, as we’ve seen above. 18

Another advantage of this measure is that historians have reconstructed estimates of GDP per capita that go back many centuries. This historical research is an extremely laborious task , and researchers have dedicated many years of work to these reconstructions. The ‘Maddison Project’ brings together these long-run reconstructions from various researchers, and thanks to these efforts, we have a good understanding of how incomes have changed over time.

The chart shows how average incomes in different world regions have changed over the last two centuries. Looking at the latest data, you see again the very large inequality between different parts of the world today. You now also see the history of how we got here: small increases in production in some world regions and very large increases in those regions where people have the highest incomes today.

One of the very first countries to achieve sustained economic growth was the United Kingdom. In this chart, we see the reconstructions of GDP per capita in the UK over the last centuries.

It is no accident that the shape of this chart is very similar to the chart on book production at the beginning of this text – very low and almost flat for many generations and then quickly rising. Both of these developments are driven by changes in production.

Average income corresponds to average production, and societies around the world were able to produce very few goods and services in the past. There were no major exceptions to this reality. As we see in this chart, global inequality was much lower than today: the majority of people around the world were very poor.

To get a sense of what this means, you can again take the approach we’ve used to understand the inequality in the world today. When incomes in today’s rich countries were 20 times lower, it was as if all the prices around you today would suddenly increase 20-fold. But in addition to this, you have to consider that all the goods and services that were developed since then disappeared – no bicycle, no internet, no antibiotics. All that’s left for you are the goods and services of the 17th century, but all of them are 20 times more expensive than today. The majority of people around the world, including in today’s richest countries, live in deep poverty.

Just as we’ve seen in the history of book production, this changed once new production technologies were introduced. The printing press was an exceptionally early innovation in production technology; most innovations happened in the last 250 years. The starting point of this rise out of poverty is called the Industrial Revolution.

The printing press made it possible to produce more books. The many innovations that made up the Industrial Revolution made it possible to increase the production of many goods and services. Compare the effort that it takes for a farmer to reap corn with a scythe to the possibilities of a farmer with a tractor or a combined harvester, or think of the technologies that made overland travel faster – from walking on foot to traveling in a horse buggy to taking the train or car; or think of the effort it took to build those roads that the buggies once traveled on with the modern machinery that allows us to produce the corresponding public infrastructure today .

The production of a myriad of different goods and services followed trajectories very similar to the production of books – flat and low in the past and then steeply increasing. The rise in average income that we see in this chart is the result of the aggregation of all these production increases.

In the past, before societies achieved economic growth, the only way for anyone to become richer was for someone else to become poorer; the economy was a zero-sum game. In a society that achieves economic growth, this is no longer the case. When average incomes increase, it becomes possible for people to become richer without someone else becoming poorer.

This transition from a zero-sum to a positive-sum economy is the most important change in economic history (I wrote about it here ) and made it possible for entire societies to leave the extreme poverty of the past behind.

Conclusion: The history of global poverty reduction has just begun

The chart shows the global history of extreme poverty and economic growth.

In the top left panel, you can see how global poverty has declined as incomes increased; in the other eight panels, you see the same for all world regions separately. The starting point of each trajectory shows the data for 1820 and tells us that two centuries ago, the majority of people lived in extreme poverty, no matter where in the world they were at home.

Back then, it was widely believed that widespread poverty was inevitable. But this turned out to be wrong. The trajectories show how incomes and poverty have changed in each world region. All regions achieved growth – the goods and services that people need saw their production and quality increase – and the share living in extreme poverty declined. 19

This historical research was done by Michail Moatsos and is based on the ‘cost of basic needs’-approach as suggested by Robert Allen (2017) and recommended by the late Tony Atkinson. 20 The name ‘extreme poverty’ is appropriate as this measure is based on an extremely low poverty threshold. It takes us back to what I mentioned at the very beginning; this historical research tells us – as the author puts it – that three-quarters of the world "could not afford a tiny space to live, food that would not induce malnutrition, and some minimum heating capacity.”

Since then, all world regions have made progress against extreme poverty – some much earlier than others – but in particular, in Sub-Saharan Africa, the share of people living in deep poverty is still very high.

The last two centuries were the first time in human history that societies have achieved sustained economic growth, and the decline of global poverty is one of the most important achievements in history. But it is still a very long way to go.

This is what we see in this final chart. The red line shows the share of people living in extreme poverty that we just discussed. Additionally, you now also see the share living on less than $3.65, $6.85, and $30 per day. 21

The world today is very unequal, and the majority of the world still lives in poverty: 47% live on less than $6.85 per day, and 84% live on less than $30. Even after two centuries of progress, we are still in the early stages. The history of global poverty reduction has only just begun.

That the world has made substantial progress but nevertheless still has a long way to go is the case for many of the world’s very large problems. I’ve written before that all three statements are true at the same time: The world is much better, the world is awful, and the world can be much better. This is very much the case for global poverty. The world is much less poor than in the past, but it is still very poor, and it remains one of the largest problems we face.

Some writers suggest we can end poverty by simply reducing global inequality. This is not the case. I’m very much in favor of reducing global inequality, and I hope I do what I can to contribute to this. But it is important to be clear that a reduction of inequality alone would still mean that billions around the world would live in very poor conditions. Those who don’t see the importance of growth are not aware of the extent of global poverty. The production of many crucial goods and services has to increase if we want to end it. How much economic growth is needed to achieve this? This is the question I answered in this recent text .

To solve the problems we face, it is not enough to increase overall production. We also need to make good decisions about which goods and services we want to produce more of and which ones we want less of. Growth doesn’t just have a rate, it also has a direction, and the direction we choose matters – for our own happiness and for achieving a sustainable future .

I hope this text was helpful in making clear what economic growth is. It is necessary to remind ourselves of that because we mostly talk about poverty and growth in monetary terms. The monetary measures have the disadvantage that they are abstract, perhaps so abstract that we even forget what growth is actually about and why it is so important. The goods and services that we all need are not just there – they need to be produced – and economic growth means that the quality and quantity of these goods and services increase, from the food that we eat to the public infrastructure we rely on.

The history of economic growth is the history of how societies leave widespread poverty behind by finding ways to produce more of the goods and services that people need – all the very many goods and services that people produce for each other: look around you now.

Acknowledgments: I would like to thank Joe Hasell and Hannah Ritchie for very helpful comments on draft versions of this article.

Our World in Data presents the data and research to make progress against the world’s largest problems. This article draws on data and research discussed in our topic pages on Economic Inequality , Global Poverty , and Economic Growth .

Version history: In October 2023, I copy-edited this article; it was a minor update, and nothing substantial was changed.

Michail Moatsos (2021) – Global extreme poverty: Present and past since 1820. Published in OECD (2021), How Was Life? Volume II: New Perspectives on Well-being and Global Inequality since 1820 , OECD Publishing, Paris, https://doi.org/10.1787/3d96efc5-en .

At the time when material prosperity was so poor, living conditions were extremely poor in general; close to half of all children died .

Historian Gregory Clark reports the estimate that scribes were able to copy about 3,000 words of plain text per day.

See Clark (2007) – A Farewell to Alms: A Brief Economic History of the World. Clark (2007). In it, Clark quotes his earlier working paper with Patricia Levin as the source of these estimates. Gregory Clark and Patricia Levin (2001) – “How Different Was the Industrial Revolution? The Revolution in Printing, 1350–1869.”

There are about 760,000 words in the bible (it differs between various translations and languages; here is an overview of some translations).

This implies that the production of one copy of the Bible meant 253.3 days (8.3 months) of daily work.

Copying the text was not the only step in the production process for which productivity was low. The ink had to be made, parchment had to be produced and cut, and many other steps involved laborious work.

Wikipedia’s article about scribes reports sources that estimate that the production time per bible was even longer than 8 months.

Clark himself states in the same publication that “Prior to that innovation, books had to be copied by hand, with copyists on works with just plain text still only able to copy 3,000 words per day. Producing one copy of the Bible at this rate would take 136 man-days.” Since the product of 136 and 3000 is only 408,000, it is unclear to me how Clark has arrived at this estimate – 408,000 words are fewer words than in the Tanakh and other versions of the bible.

The data is taken from Eltjo Buringh and Jan Luiten Van Zanden (2009) – Charting the “Rise of the West”: Manuscripts and Printed Books in Europe, a Long-Term Perspective from the Sixth through Eighteenth Centuries. In The Journal of Economic History Vol. 69, No. 2 (June 2009), pp. 409-445. Online here .

Western Europe in this study is the area of today’s Great Britain, Ireland, France, Belgium, Netherlands, Germany, Switzerland, Italy, Spain, Sweden, and Poland.

On the history and economics of book production, see also the historical work of Jeremiah Dittmar.

I’ve relied on several sources to produce this list. One source was the simple descriptions of the consumption bundles that are relied upon for CPI measurement – like this one from Germany’s statistical office . And I have also relied on the national accounts themselves.

This list is also inspired partly by this list of Gwern and I’m also grateful for the feedback that I got via Twitter to earlier versions of this list. [ Here I shared the list on Twitter ]

This is Hans Rosling’s talk on the magic of the washing machine – worth watching if you haven’t seen it.

Of course all of these transfer payments have a service component to them, someone is managing the payment of the disability benefits etc.

Because smoking causes a large amount of suffering and death I do not find cigarettes valuable, but my opinion is not what matters for a list of goods and services that people produce for each other. Whether some good is considered to be part of the domestic product depends on whether it is a good that some people want, not whether you or I want it. More on this below.

Very similar to the definitions given above is the definition that Kimberly Amadeo gives: “Economic growth is an increase in the production of goods and services over a specific period.”

“Economic growth is an increase in the production of economic goods and services, compared from one period of time to another” is the definition at Investopedia .

Alternatively, to my definition, I think it can be useful to think of economic growth as not directly concerned with the output as such but with the capacity to produce this output. The NASDAQ’s glossary defines growth in that way: “An increase in the nation's capacity to produce goods and services.”

Wikipedia defines economic growth as follows: “Economic growth can be defined as the increase in the inflation-adjusted market value of the goods and services produced by an economy over time.” Definitions that are based on how growth is measured strike me as wrong – just like life expectancy is a measure of population health and hardly the definition of population health. I will get back to this mistake further below in this text.

An aspect that I emphasize more explicitly than others is the quality of the goods and services. People obviously do just care about the number of goods, and in the literature on growth, the measurement of changes in quality is a central question. Many definitions speak more broadly about the ‘value’ of the goods and services that are produced, but I think it is worth emphasizing that growth is also concerned with a rise in the quality of goods and services.

OECD – Measuring the Non-Observed Economy: A Handbook .

The relevant numbers are not small. For the US alone, “illegal drugs add $108 billion to measured nominal GDP in 2017, illegal prostitution adds $10 billion, illegal gambling adds $4 billion, and theft from businesses adds $109 billion” if they were to be included in the US National Accounts. This is according to the report by Rachel Soloveichik (2019) – Including Illegal Activity in the U.S. National Economic Accounts . Published by the BEA.

Ironmonger (2001) – Household Production. In International Encyclopedia of the Social & Behavioral Sciences. Pages 6934-6939. https://doi.org/10.1016/B0-08-043076-7/03964-4

Or for some longer run data on the US: Danit Kanal and Joseph Ted Kornegay (2019) – Accounting for Household Production in the National Accounts: An Update, 1965–2017 . In the Survey of Current Business.

Helpful references that discuss how the production boundary is drawn (and how it changed over time) are: Lequiller and Blades – Understanding National Accounts (available in various editions) Diane Coyle (2016) – GDP: A Brief but Affectionate History https://press.princeton.edu/books/paperback/9780691169859/gdp

The definition of the production boundary by Statistics Finland

Itsuo Sakuma (2013) – The Production Boundary Reconsidered. In The Review of Income and Wealth. Volume 59, Issue 3; Pages 556-567.

Diane Coyle (2017) – Do-it-Yourself Digital: The Production Boundary and the Productivity Puzzle. ESCoE Discussion Paper 2017-01, Available at SSRN: http://dx.doi.org/10.2139/ssrn.2986725

A more general way of thinking about free goods and services is to consider them as those for which the supply is hugely greater than the demand.

Their production, therefore, has an opportunity cost, which means that if someone obtains an economic good, someone is giving up on something for it – this can either be the person themselves or society more broadly. Free goods, in contrast, are provided with zero opportunity cost to society.

It is also the case that the international statistics on these measures often have very low cutoffs for what it means ‘to have access’; this is, for example, the case for what it means to have access to energy.

10 years ago, Google counted there were 129,864,880 different books, and since then, the number has increased further by many thousands of new books every day.

This chart is from Jeremiah Dittmar and Skipper Seabold (2019) – New Media New Knowledge – How the printing press led to a transformation of European thought . I was unfortunately not able to find the raw data anywhere and could not redraw this chart; if someone knows where this (or comparable) data can be found, please let me know.

In the language of economists, the nominal value is measured in terms of money, whereas the real value is measured against goods or services. This means that the real income is the income adjusted for inflation (it is adjusted for the changes in prices of goods and services). Thereby, it allows comparisons that tell us the quantity and quality of the goods and services that people were able to purchase at different points in time.

I learned this way of thinking about it from Twitter user @Kirsten3531, who responded with this idea to a tweet of mine here https://twitter.com/Kirsten3531/status/1389553625308045317

We’ve discussed one such consideration that is crucial for comparability when we consider how to take into account the value of owner-occupied housing.

Whether economic growth translates into the reduction of poverty depends not only on the growth itself but also on how the distribution of income changes. The poverty metrics shown in this chart and in previous charts take both of these aspects – the average level of production/income and its distribution – into account.

Jutta Bolt and Jan Luiten van Zanden (2021) – The GDP data in the chart is taken from The Long View on Economic Growth: New Estimates of GDP, How Was Life? Volume II: New Perspectives on Well-being and Global Inequality since 1820 , OECD Publishing, Paris, https://doi.org/10.1787/3d96efc5-en .

The latest data point for the poverty data refers to 2018, while the latest data point for GDP per capita refers to 2016. In the chart, I have chosen the middle year (2017) as the reference year.

The ‘cost of basic needs’-approach was recommended by the ‘World Bank Commission on Global Poverty’, headed by Tony Atkinson, as a complementary method in measuring poverty.

The report for the ‘World Bank Commission on Global Poverty’ can be found here .

Tony Atkinson – and, after his death, his colleagues – turned this report into a book that was published as Anthony B. Atkinson (2019) – Measuring Poverty Around the World. You find more information on Atkinson’s website .

The CBN-approach Moatsos’ work is based on what was suggested by Allen in Robert Allen (2017) – Absolute poverty: When necessity displaces desire. In American Economic Review, Vol. 107/12, pp. 3690-3721, https://doi.org/10.1257/aer.20161080 .

Moatsos describes the methodology as follows: “In this approach, poverty lines are calculated for every year and country separately, rather than using a single global line. The second step is to gather the necessary data to operationalize this approach alongside imputation methods in cases where not all the necessary data are available. The third step is to devise a method for aggregating countries’ poverty estimates on a global scale to account for countries that lack some of the relevant data.” In his publication – linked above – you find much more detail on all of the shown poverty data. The speed at which extreme poverty declined increased over time, as the chart shows. Moatsos writes, “It took 136 years from 1820 for our global poverty rate to fall under 50%, then another 45 years to cut this rate in half again by 2001. In the early 21st century, global poverty reduction accelerated, and in 13 years, our global measure of extreme poverty was halved again by 2014.”

These are the same global poverty estimates – based on household surveys – we discussed above.

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Economic Growth - Essay Examples And Topic Ideas For Free

Economic growth denotes an increase in the production of goods and services in an economy over time, often measured by the growth of the Gross Domestic Product (GDP). Essays on economic growth could explore the factors contributing to growth, the relationship between economic growth and development, and the various theories explaining economic growth. Moreover, discussions might cover the implications of growth on income inequality, environmental sustainability, and social welfare. Examining policies aimed at stimulating growth, the historical and contemporary debates surrounding the benefits and costs of economic growth, and comparing different growth models across countries can provide a holistic understanding of this crucial economic concept. We have collected a large number of free essay examples about Economic Growth you can find at PapersOwl Website. You can use our samples for inspiration to write your own essay, research paper, or just to explore a new topic for yourself.

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Examining GDP and Unemployment

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Economics Essay Topics: Valuable Tips

Economics is a subject that has gained immense popularity in recent times. It deals with interesting economics topics like the production, distribution, and consumption of goods and services. Moreover, it is a social science that provides insights into how individuals, businesses, and governments make decisions that affect the overall economy. Given its importance, economics essays have become a crucial part of the curriculum for students pursuing various degrees.

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In this article, our essay writer will take you on a journey through various exciting topics in economics. We'll cover everything from big-picture concepts like macroeconomics to more focused ideas like microeconomics, international trade, and economic policy. Our goal is to help you find the perfect topic for your economics essay—one that matches your interests and demonstrates your understanding of how economics affects the real world.

🎓 What is Economics: Understanding the Importance

Before we dive into the different economics essay topics, it is crucial to understand what economics is and its importance. Economics is a social science that deals with the production, distribution, and consumption of goods and services. It is concerned with how individuals, businesses, and governments make decisions about allocating resources to satisfy their unlimited wants and needs.

Economics as a science provides a framework for analyzing society's production, distribution, and consumption of goods and services. It helps us understand how markets work and how they can be improved to increase efficiency and welfare. Moreover, economic principles have significant implications for various social issues, including poverty, inequality, environmental sustainability, and public policy. By studying economics essay topics, we can gain insights into these issues and develop policies that promote rapid economic growth and social welfare.

When it comes to economics, the range of essay topics is vast and covers various aspects of human interactions on different levels. With so many possibilities to explore, we understand the difficulty of narrowing down your options. That's why our ' write me an essay ' experts are here to offer their guidance and support. We're ready to help you select the ideal topic if you wish to learn how to write informative essay on economics.

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Tip 2: Opt for narrow economics research topics to make them more manageable and allow for in-depth exploration.

Instead of tackling broad subjects like 'International Trade,' narrow down your focus to something like 'The Effects of Tariffs on Small Businesses in the Agriculture Sector' or 'The Relationship Between Exchange Rates and Export Performance in Developing Countries.' By delving deeper into a specific aspect, you can provide more detailed financial analysis and insights.

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Before finalizing your topic, engage in preliminary research to gain an understanding of recent trends and issues in economics. Explore academic journals, news articles, and books to discover areas that warrant further exploration. For example, you might come across intriguing research gaps such as 'The Impact of Cryptocurrencies on Financial Markets' or 'The Role of Behavioral Economics in Shaping Consumer Decision-Making.'

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🗒 Economics Essay Topics: A Comprehensive List

If you are looking for a comprehensive list of interesting economics essay topics, you have come to the right place. Here are some ideas that you can consider:

• Central Banks in Fiscal Policy : Examine central banks' roles in setting interest rates, regulating money supply, and managing inflation.
• Automation and Labor Market : Analyze the impact of automation on jobs, including worker displacement and new job creation.
• Immigration and Labor Market : Explore immigration's effects on wages, job opportunities, and economic growth.
• Economics of Climate Change : Discuss the costs and economic impact of climate change mitigation and adaptation.
• Economics of Healthcare : Investigate healthcare costs, the role of insurance, and the impact of healthcare policies on the economy.
• Government's Economic Role : Examine how government policies, both fiscal and monetary, affect the economy.
• Globalization's Economic Impact : Analyze how globalization affects industries, trade, and employment.
• Poverty and Inequality : Explore the causes and effects of poverty and inequality and the role of government interventions.
• Economics of Education : Investigate education costs, its impact on economic growth, and the government's role in education.
• Marketplace Competition : Discuss how competition promotes economic growth, innovation, and consumer welfare.
• Economics of Entrepreneurshi p: Examine factors promoting entrepreneurship and its impact on the economy.
• Quantitative Easing and Recovery : Analyze how large-scale asset purchases influence inflation, employment, and economic stability.
• Renewable Energy Economics : Assess the costs, benefits, and challenges of transitioning to renewable energy.
• Technological Innovation : Explore how R&D and digitalization impact productivity, job creation, and economic competitiveness.
• Behavioral Economics and Decision-Making : Investigate how cognitive biases and heuristics influence consumer behavior and market outcomes.

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🧮 Macroeconomics Essay Topics

Macroeconomics is a fascinating and complex field of study that aims to understand the overall performance of an economy. It takes into account various factors such as economic growth, inflation, unemployment, and trade policies. If you are looking for some thought-provoking macroeconomics essay topics, here are a few that you might find interesting:

• The Impact of Fiscal Policy on Economic Growth
• Monetary Policy and Inflation Control: Case Studies from Different Countries
• The Role of Central Banks in Modern Economies
• The Effects of Globalization on National Economies
• Unemployment Rates and Economic Stability
• The Influence of Political Stability on Economic Development
• The Economics of Recession and Recovery
• Debt Crisis: Causes and Solutions
• The Relationship Between Exchange Rates and International Trade
• The Future of Cryptocurrencies in the Global Economy

📉 Microeconomics Essay Topics

Microeconomics focuses on the behavior of individual consumers and businesses in the market. The principles of microeconomics are used to analyze how these entities make decisions, interact with each other, and influence the overall economy. If you're interested in exploring this field further, here are some microeconomics essay topics that you might find interesting:

• The Theory of Consumer Choice and Its Applications
• Market Structures: Comparing Perfect Competition, Monopolies, and Oligopolies
• Price Elasticity of Demand: Importance and Calculation
• The Role of Government in Market Failures
• The Economics of Labor Markets and Wage Determination
• The Impact of Minimum Wage Laws on Small Businesses
• Behavioral Economics: How Human Psychology Affects Economic Decisions
• Game Theory and Its Applications in Business
• The Economics of Information and Market Efficiency
• The Impact of Technology on Production and Costs

🎏 International Economics Essay Topics

International economics deals with the economic interactions between countries, including trade, investment, and migration. Here are some international economic relations topics:

• The Pros and Cons of Free Trade Agreements
• The Impact of Tariffs and Trade Wars on Global Economies
• Exchange Rate Dynamics and International Trade
• The Role of International Organizations in Global Trade
• Economic Integration: Case Studies of the EU and NAFTA
• The Economics of Developing Countries: Challenges and Opportunities
• Foreign Direct Investment: Benefits and Risks
• Global Supply Chains and Their Economic Implications
• The Role of Multinational Corporations in Globalization
• The Impact of Currency Crises on Emerging Markets

📉 Behavioral Economics Essay Topics

Behavioral economics combines psychology and economics to analyze how people make decisions. Here are some behavioral economics essay topics:

• The Role of Cognitive Biases in Economic Decision-Making
• How Social Preferences Influence Market Outcomes
• Behavioral Insights into Consumer Credit Usage
• The Impact of Behavioral Economics on Public Policy
• Nudging and Its Effectiveness in Changing Economic Behavior
• The Psychology of Saving and Investment Decisions
• The Influence of Emotions on Economic Decisions
• Behavioral Economics and Health-Related Decision-Making
• The Economics of Happiness: Measuring Well-Being
• The Role of Heuristics in Financial Decision-Making

🚑 Healthcare Economics Essay Topics

Healthcare economics analyzes how the healthcare system operates, including the costs and benefits of healthcare interventions. Here are some healthcare economics essay topics:

• The Economics of Universal Healthcare Systems
• The Impact of Health Insurance on Medical Costs
• The Role of Government Regulation in the Pharmaceutical Industry
• Cost-Benefit Analysis of Preventive Healthcare
• The Economics of Aging Populations and Healthcare Demand
• The Effectiveness of Public Health Interventions
• The Impact of Technological Advancements on Healthcare Costs
• Healthcare Disparities: Economic Causes and Solutions
• The Economics of Mental Health Services
• The Role of Economic Incentives in Health Behavior Change

🌎 Consumerism Essay Topics

Consumerism refers to the cultural and economic mindset that encourages the acquisition of goods and services. Here are some consumerism essay topics:

• The Impact of Advertising on Consumer Behavior
• Consumerism and Its Effects on the Environment
• The Role of Credit in Modern Consumerism
• The Psychology Behind Impulse Buying
• The Economic Implications of the Sharing Economy
• The Relationship Between Consumerism and Economic Growth
• Ethical Consumerism: Trends and Economic Impact
• The Influence of Social Media on Consumer Spending
• The Role of Consumer Protection Laws in Market Economies
• The Impact of Globalization on Consumer Choices

📚 Economic History Topics

Economic history is a field of study that examines the historical development of economic systems, policies, and institutions, as well as the social, political, and cultural factors that have influenced economic outcomes over time. Here are the 10 interesting topics:

• The Great Depression: Causes, Consequences, and Recovery
• The Economic Impact of World War II
• The Industrial Revolution and Economic Development
• The Evolution of Trade and Commerce in Ancient Civilizations
• The Economic Effects of Colonialism
• The Rise and Fall of the Gold Standard
• The History of Banking and Financial Institutions
• Economic Reforms in Post-Soviet States
• The Role of Agriculture in Early Economic Systems
• The Economic History of the Silk Road

📊 Public Finance Research Topics

Public finance research focuses on the study of the government's role in the allocation, distribution, and management of resources within an economy. It encompasses the analysis of public revenues, expenditures, taxation policies, and the impact of government interventions on economic outcomes and social welfare. Here are 10 relevant economics papers topics:

• The Role of Government in Economic Stabilization
• The Impact of Taxation on Economic Growth
• Public Debt and Its Implications for Future Generations
• The Economics of Social Security Systems
• Fiscal Policy and Income Inequality
• The Effectiveness of Government Spending on Education and Healthcare
• The Role of Public-Private Partnerships in Infrastructure Development
• The Economic Impact of Environmental Taxes
• The Challenges of Pension Fund Management
• The Role of Fiscal Rules in Economic Governance

Closing Remarks 

To wrap up, economics is a subject that offers insights into how the world works. It provides a framework for analyzing complex social issues, including poverty, inequality, and public policy. Therefore, exploring economics essays topics is an excellent way of understanding the subject's relevance in the real world.

By following the tips for choosing your ideal topic and exploring the comprehensive list of economics topics for an essay, you can write an insightful and inspiring paper that contributes to the ongoing dialogue on economics.

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Updated Topics

How to Write a Band 6 HSC Economics Essay

Writing a Band 6 HSC Economics essay can be difficult because the essay questions can vary from addressing a specific section of the syllabus to having a broad focus and therefore requiring synthesis of entire topics.

Furthermore, there are two HSC Economics essays in the HSC exam, which make up 40 marks of the whole exam!

Section III – is a stimulus based economic essay response where you MUST  make reference to the stimulus provided and integrate it into your response. Section IV – a free response economic essay.

This article aims to therefore streamline the writing process and provide a sustained, logical and cohesive approach that is backed by findings from experienced HSC Economics markers: the ones who mark hundreds of essays year in year out.

Ready to learn how to ace your HSC Economics Essay? Let’s jump in!

Here is the example question we’re going to use throughout this article to demonstrate what to do to get that Band 6 in your HSC Economics Essay ( Question 27 of the 2016 HSC ).

Editor’s Note: Although this post was made in 2018, any sample responses will be written as if they were written in 2016, reflecting the current state of the economy at the time.

Step 1: Plan Your Response Step 2: Finish Your Introduction Strong Step 3: The Writing Process Step 4: Practise Writing HSC Economics Essay Plans

Step 1: Plan Your Response

Use the first page of your writing booklet to sketch a plan of your response.

In fact, this was often what I would do first upon beginning an Economics exam. I’d develop a plan for my essays and then go back to the Multiple Choice section.

This achieved two things:

 It warmed up my mind so that I was ready to engage with Section I and Section II  More importantly, this ensured I would not forget my essay plans throughout the exam and I could readily return to my plan to jog my thought process.

This is critical because the Economics essay emphasises a  logical progression of ideas.

Therefore, in many ways, an essay plan allows you to visualise your thought process and reduce the chance of you forgetting your train of thought or worse, going on a tangent and including irrelevant details.

This helps keep your response  sustained, which is a key component of the A range marking criteria.  Your essay must continually drive towards developing your thesis – the actual answer to the essay question itself.

In saying so, before we plan, we must understand the NESA directive verbs. This will determine the level of depth and the approach the markers are looking for.

If you’re unsure about your directive verbs, check out NESA’s glossary of key directive verbs !

How to Plan for an HSC Economics Essay:

The most important thing about any essay is the answer to the question itself with your thesis. All points, arguments and statistics are simply used to support it.

As a result, begin the plan by writing a direct answer to the question. In your thesis you want to:

Provide context for the question – include definitions of key terms such as monetary policy or economic objectives. Then use qualifiers or intensifiers (to some extent, significantly, is ineffective) to answer the essay question.

For our example, the thesis would look like:

Expansionary monetary policy conducted by the Reserve Bank of Australia (RBA) involves deliberate actions to theoretically increase the supply of funds and reduce the cash rate, the cost of borrowing, in an effort to achieve economic objectives. However in practice, the RBA’s aggressively expansionary monetary policy, exemplified by its low 1.50% cash rate, has only had a limited impact on the economy.

Next, organise your ideas into dot points which you can will write your paragraphs on.

Also note down any sub points or arguments you think of underneath. This can include theory, links to the stimulus if this is a Section III essay, relevant statistics or graphs.

As this is the planning stage, it isn’t essential to get it all down perfectly, even just a word or key term to retain your train of thought is fine.

Below is an IDEAL plan using our example question. I have used more words than I normally would to help you read along (in reality, one word dot points are fine, as long as you can understand what you’ve written).

If there are natural links and connections between paragraphs this can also be useful in transitioning in between different paragraphs to maintain the  cohesiveness  of the essay, i.e. making it flow better.

Still feeling overwhelmed with writing your HSC Economics Essay for your upcoming Economics assessment? Get additional help writing your HSC Economics essays with our HSC Economics Tutoring Sydney .

Step 2: Finish Your Introduction Strong

Now you have already written a strong thesis and have provided context for the essay.

All that is left is to connect your paragraph points to answering the thesis. This is in lieu of simply stating which objectives you will be looking at, which is not as effective and thesis-driven. Compare the pair:

Rather than saying:

Economic growth, inflation, unemployment and external stability are economic objectives which monetary policy have failed to address.

The transmission mechanism’s failure to boost consumption and business investment has lead to poor economic growth, and combined with below target inflation, unemployment that exceeds the NAIRU (non-accelerating inflation rate of unemployment), and an increasing current account deficit (CAD) driven by a widening trade deficit, monetary policy has failed to achieve a positive impact on the Australian economy and its objectives.

It is much more impressive to the marker if you are able to show a direct link between your points and the thesis you are addressing, as it shows a logical approach.

Are you taking Business Studies too? Master the HSC Business Studies report with our guide !

Step 3: The Writing Process

The other general criteria in HSC Economics essays is the related to the way you write and use language , including economic terms, concepts, relationships and theories.

This of course means you must know your content well and be able to connect different parts of the syllabus together and understand their relationships.

Once you have mastered your content, the criteria then asks for a ‘sustained, logical and cohesive’ response. In order to achieve this, it is best to use a clear structure (which we have planned for in Step 1) as it forces you to retain a logical and cohesive structure.

Here’s how to do it:

Use DPEEL (writing structure)

To provide a basic structure, follow DPEEL  which will ensure you are using economic terms, concepts, relationships and theories consistently in your essay.

Definition – assume the marker is a layperson (has limited knowledge of the course) and ensure you are defining the economic term or concept to reflect your understanding. Can be integrated into the response and does not need its own sentence. Point – Attack the question and pinpoint what your overall answer will be, akin to a mini thesis. Explain – Provide further details that elaborate on your point. Depending on which directive verb you are asked, this is also where you can start to show relationships (analyse), provide additional economic theories that demonstrate a cause and effect (explain) or make a judgement (assess). Evidence – Integrate elements from the stimulus if it is a Section III Economics essay. Further, it reflects more in depth synthesis if you refer to specific statistics or quotes from the stimulus rather than simply stating a vague, ‘as seen in Source 1.’ If it is a Section IV Economics essay, this is where relevant statistics, graphs or economic theory will further elaborate and support your argument. However make sure you also explain graphs and their effects, rather than simply referring to them as ‘Figure 1,’ as failure to do so severely limits their effectiveness. Link – Conclude your paragraph by linking your points back to your original thesis.

Use transition signals

The ‘sustained’ element of the marking criteria means the markers want the essay to flow uninterrupted . No additional details or sidetracks.

The best way to achieve this is through the use of transition signals.

Transition signals   include words such as furthermore, hence, as a result, this leads to, but, however. These are ‘linking’ words which along with the DPEEL structure FORCE  you to stay on track and sustain your attack on the thesis, as each sentence must relate to the previous. Hence this makes it extremely difficult for you to stray off topic, allowing you to create a sustained response!

Prepare a table of key statistics and economic developments

Just like with English, Economics is also a subject with high demands on memory. Not only must you remember course content, you must also remember relevant statistics and graphs. An efficient way to facilitate this process is a simple table that allows you to organise your information. For example:

This will increase your mind’s ability to chunk the information without feeling overwhelmed.

Write a Strong Conclusion

HSC Economics essay conclusions are quite straightforward.

They need to:

Reaffirm your position and perspectives by restating your thesis — your answer to the question. Tie up your points and summarise how those ideas have supported your thesis. Provide a final statement that ‘ zooms out ‘ and provides a broad perspective of the question. This could be through providing an insight into future trends, expectations or areas for discussion.

Make sure you don’t overdo the conclusion.  Three to four sentences is more than enough and the last thing a marker wants to see is a conclusion that has overstayed its welcome!

Step 4: Practise Writing HSC Economics Essay Plans

The final and most important tip is to practise this approach using different styles and topics of essay questions. It is also important that you plan the essays as you would in an exam to give you practice for planning for unseen questions.

We’ve done the hard work for you and you can find a collection of HSC Economics Essay Questions !

Apply these steps to build your consistency in writing logically and systematically.

That is the only way you will improve and better appreciate the amazingly pragmatic text type that is the HSC Economics essay. If you need more essay questions you can use past HSC exams, your textbook, or ask your teacher.

HSC Economics Tutoring Sydney can help you write strong Economics Essays, and make sure you get valuable feedback!

On the hunt for more HSC Economics resources?

Check out some of our other articles and guides below:

• HSC Economics Past Papers Master List

How to Write Effective HSC Economics Study Notes

The ultimate guide to getting a band 6 in hsc economics, are you looking for some extra help with your hsc economics essay writing, we pride ourselves on our inspirational hsc economics coaches and mentors.

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Economic Topics for Any Paper [with Great Tips & Examples]

Are you not passionate about economics, but still need to write a paper? We feel you. Economics is the type of subject that sometimes provokes the anxiety of students. Being overwhelmed with its complexity, students get discouraged and give up.

But don’t worry!

We know how to turn a tedious essay writing process into fantastic entertainment. All you need to do is to find a catchy and relatable idea for your paper. Select something that you are interested in and enjoy your work.

Our team created a list of fascinating economic topics for your essays. Don’t hesitate to use them. Look through our ideas and select the most appropriate one. Our insightful tips will help you to receive grade A for your economic paper!

• 🔑 Economic Terms
• ✒️ Fundamental Topics
• 🔍 Microeconomic
• 🌎 Macroeconomic
• 🤝 International
• 🌳 Environmental
• ⌛ Developmental
• 🤲 Econometrics
• 📝 Essay Topics
• 📜 Term Paper Topics
• 📚 Thesis Topics
• 📈 Topics for Project
• 💡 Tips on Writing

🔑 Key Economic Terms Definition

For a more effective search for economics paper topics, let’s dive into fundamental concepts of this subject. The essential information you should know about economics is its central questions.

Economics is supposed to explore the following issues:

• What to produce?
• How to produce?
• For whom to produce?

These are the three fundamentals the economics focuses on.

Moreover, economics is divided into microeconomics and macroeconomics. The understanding of their differences is crucial for a good comprehension of the subject.

Microeconomics focuses mainly on entrepreneurs’ behavior. Analyzing the situation within one business it helps to make decisions regarding their companies. In contrast, macroeconomics studies the economic state in the countries. It determines the economic approaches to rule the counties and sets the fiscal policy.

Overall, macroeconomics analyzes global topics in the economy, while microeconomics focuses on a narrower field.

👏 Essential Economic Topics

Are you desperately searching for economical essay ideas? Then you are on the right page! The following section includes primary interesting economic topics. So, don’t waste your time! Look through our essential ideas and chose the most appropriate for you.

✒️ Fundamental Economic Topics

• Multinational firms impacts on economic growth.
• How do economists measure the quality of life in a country?
• Nominal versus real gross domestic product.
• Limitations of GDP as a measure of economic welfare.
• Economic systems and market structures.
• Economic, social, and global environments for organizations.
• Evolution of capitalism: concept, origin, and development.

• Fundamental concepts of economics: real and nominal variables.
• Impacts of multinational corporations (MNC) involvement in developing countries.
• Economic policies employed by governments.
• New technology trends used in banks.
• Cournot competition as an economic model.
• Role of advertising in monopolistic competition and oligopoly advertising.
• Economic crises in economic growth through economic history.
• Competition in economics. Describe the concept of perfect competition. What the similarities and differences between oligopoly and monopoly? What are some difficulties in monopolistic competition? Support your ideas by providing strong arguments and appropriate examples.
• John Locke’s and Karl Marx’s economic ideas . Compare and contrast the fundamental concepts of both theories. What economic problems do both scientists explore in their studies? Analyze how modern economists use Locke’s and Marx’s ideas as prerequisites to their researches?
• Services in banks: strategies and plans . Analyze the services that are provided in banks in your country. Do they satisfy clients’ needs? Is there any way to test banks? Suggest some possible improvements to the banking system in your country.
• The significance of formalizing economy . Give your own opinion regarding this issue. Are you for or against applying policies and predetermined rules to govern the economy? Support your position by providing clear arguments.
• The economic explanation of political dishonesty. Explain how politics affects the economy of a country. How may some economic issues within a country lead to political deception? Should the economy depend on politics or not? State your position clearly and provide strong arguments.
• Microeconomics should be before macroeconomics in the syllabus . Explain why microeconomics is a vital prerequisite for macroeconomics. Which fundamental concepts of one field are applied in another?

🔍 Microeconomic Topics

• Microeconomic theory: correlation between variables.
• Opportunity cost in microeconomics .
• Monopolistic competition as a market structure .
• Demand, supply, and their interaction on markets .
• Competition and monopoly as the most crucial market structures in microeconomics.
• Price elasticity of demand role in microeconomics.
• Concept of market equilibrium in business.

• Microeconomics principles in the flying automobiles industry
• Income effect and substitution effect in microeconomics.
• Economic factors on the stock market.
• Elasticity and its importance for business.
• Cost changes and the implementation of control mechanisms.
• Market value concept from an economic perspective.
• Operation of an efficient market and causes of market inefficiencies. Briefly describe a profitable market. What are some possible reasons for lowering the market efficiency level? Suggest how to maintain market efficiency.
• Internationalization of small and medium enterprises . How internationalization affects the performance and operation of small and medium companies? Does it have a positive or negative effect? Comment on how the internalization influences macro- and macroeconomic concepts.
• Price discrimination concept in microeconomics . Why do firms engage in price discrimination? Explain how and why these variables influence the price level. What are the underlying economic theories supporting price discrimination? Suggest how changes in the environment may affect pricing discrimination.
• How a good’s price is determined? Using the supply and demand model, explain how the sellers determine the price of a good.
• Supply and demand concepts. Describe the following microeconomics notions. How can supply and demand concepts be used to achieve the market equilibrium?
• Consumer choice . Conduct a normative analysis and examine the factors that impact consumer choice. Discuss the correlation of the income effect, availability of substitutes, tastes, and preferences with the consumer choice. Provide appropriate examples to support your arguments.
• Application of microeconomic concepts in personal life. For this assignment, think about the ways the microeconomics knowledge can be used in everyday life. Why is it helpful to know the basics of microeconomics to make wise decisions?

🌎 Macroeconomic Topics

• Macroeconomics theory and fundamentals .
• Role of supply-side policies in balanced economic growth .
• Sequestration and its impacts on an economy as the key aspects of macroeconomics.
• Monetary policy and its impact on economic stabilization .
• The rising cost of gas and its effect on the world economy .
• Supply policies’ role in economic growth .
• Demand and supply correlation in the market .

• The significance of Adam Smith’s “invisible hand” concept in modern economics .
• Macroeconomic environment: self-correction of the economy .
• Men’s and women’s unemployment disparity .
• Financial economics for infrastructure and fiscal policy.
• Fundamentals of macroeconomics activities influence.
• Fiscal policy: limitations and negative consequences .
• The federal reserve and the inflation problem.
• What went wrong? Present an initial inquiry into the causes of the 2008 financial crisis
• Globalization: good for people, bad for humanity. Discuss the positive and negative aspects of globalization. Provide persuasive examples to support your ideas. Leave your readers with multiple-choice, whether it is worth preventing globalization or not?
• Fluctuations in inflation rates and unemployment rates. Are you afraid of inflation and unemployment topics in your syllabus? No reasons to worry! Check out the example and become a professional in these fields.
• Macroeconomics: Determination of GDP . Introduce the elements of GDP. How does the DGP of influence the life level of a country? Suggest possible ways to increase GDP.
• Business Cycles . Discuss the features and causes of the business cycle. Comment on the recession and its occurrence. Wrap up your essay with a well-developed conclusion. Push the readers on further investigation of business cycles in macroeconomics.
• Aggregate demand and aggregate supply curves . Examine the shape of the curves. Explain why the aggregate demand curve slopes downward. What is the reason for the upward sloping of the aggregate supply curve? Writing an essay on this topic is helpful. If you figure out the answers, you will succeed in your exam!

👀 More Interesting Economic Topics

Did you scroll through our essay ideas, but still don’t know what to write about? Then, the following section is for you! Here you can find more economic topics for your paper. For your convenience, our team divided our ideas into several categories.

So, don’t stress out if you still don’t have a topic. We have much more to offer you!

🤝 International Economics

• Business challenges in the international market .
• Governments and intervention in the allocation of resources in the market .
• The problems of the modern global economy.
• Economic Inequality as a Result of Globalisation
• Sustainability and trends of the global trade imbalance.
• Globalization effects on the business, economy, and health .
• Ethical and integrity dilemma within employees in the global economy.
• Multinational firms impacts on economic growth .
• The concept of global trade imbalance as a policy issue.
• International economics in the context of globalization.

• The current economic crisis and lessons for economic theory .
• International trade policies’ major controversies.
• Globalization and foreign currency exchange.
• Balance of trade: global markets and competition.
• Cultural diversity in international trade.
• Peterson institute for international economics is a center of global economic development.
• International political economy and finance . Analyze the current economic situation in an international arena. What counties are leading ones? What countries need better economic development. Suggest some possible ways how to boost the financial status of undeveloped countries.
• The economic development of Thailand . How do political instability and environmental issues in Thailand affect the economy? What place does the county take on the international economic arena? Suggest some possible ways of improving the economy of Thailand.
• The international economy is seen as limiting developing countries’ interests . How does the international economy weaken the position of developing countries? Offer your solutions to deal with this problem.
• Current developments of the business and economic environments . Comment on the progress of the modern international economy. How do the governments benefit from it? What impact does economic development have on ordinary people? Support your ideas by providing arguments and examples.

💻 Digital Economics

• The mystery of digital currencies.
• The effect of technological change on the distribution of income .
• Economies of scope and modern technology .
• Internet infrastructure and payment across borders.
• Concept of automation of services and their effect on unemployment .
• E-commerce and risky shopping behaviors.
• Information security in the era of digitalization: mining data for better business intelligence .
• Computer-based communication technology in business communication.
• The effect of digital disruption on modern economics.

• The threats and risks of digital economics.
• E-commerce platforms are the future of the world economy.
• DIgital economics creates a perfect environment for cyber-crimes
• How economic digitalization affect national identity countries? Due to technological progress, the phenomenon of globalization occurs. As a result, local enterprises lose their customers. Discuss this issue. Suggest some ways how to prevent the loss of cultural diversity caused by globalization.
• The significance of digital economics in the 21st century . Explain why digitization is one of the most crucial factors of economic progress. How can investments in technological innovations increase the firms’ profit in the long run? Support your ideas with appropriate examples.
• Digital economics in different parts of the world. Compare and contrast the progress of digital economics in the USA, China, Russia, and Germany.
• Digital economy and unemployment issue. Due to rapid technological progress, the majority of tasks can be accomplished automatically. It resulted in firms requiring fewer employees than before the digitalization. Investigate the issue of unemployment caused by digital transformation.
• How digital economy influences medium and small businesses? Small and medium companies are incapable of investing large sums of money into technologies. As a result, they become lost in the enterprises’ mist. Large corporations, capable of implementing digital technologies, block small businesses. Discuss the threats of dynamic digital economy progress for medium and small enterprises.
• Digital economics requires specific workers . The spillover of modern technologies causes great economic progress. However, not every worker is capable of working with digital tools. How can companies solve the problem of digital illiteracy among employees? Give specific examples to support your thoughts.
• The benefits of digital economics for tourism . Nowadays, tourists can plan their trips online. They can do everything: from booking a hotel room to purchasing a train ticket. These are the results of digital progress. Analyze the impact of digitalization on tourism commerce.

🌳 Environmental Economics

• International environmental concerns in economics .
• Sustainable development: the banking sector.
• Agricultural, economics, and environmental considerations of biofuels.
• Environmental and natural resource management.
• Developing a global biodiesel industry.
• Implementing cuts in greenhouse gas emissions .
• Environmental controversy: population growth and soil fertility.
• The link between sustainable development and ecological footprint.
• The environmental sustainability concept in the hospitality industry.
• Pollution externalities role in management economics.
• International environmental laws impact on oil and gas production.

• Role of alternative energy resources in reshaping global transportation infrastructure.
• The role of human economic activity in environmental degradation .
• The implementation of environmentally-friendly sources of energy in the production of goods.
• How to overcome negative externalities in environmental economics?
• China: an example of economic progress or environmental destruction?
• Making solar energy more affordable . Solar panels usage is a great way to protect the environment. However, the establishment of solar panels is quite expensive. How can economists make solar energy more affordable?
• Neoclassical economics concepts and theories . Does neoclassical economics take into consideration the problems of environmental science? Comment on the ways the economists put effort into making the production of goods and services environmentally friendly.
• Environmental sustainability vs. financial gains . Discuss the significance of environmentally friendly economic activities. Why is it essential to use natural resources wisely? Persuade the readers that in the battle of high profits and environment protection, the environment should win.
• Earth Summit of 1992 . What should have been done differently? Why did the decisions of Earth Summit not prevent rapid environmental damage? If the summit were nowadays, it would be more focused on ecological economics. Do you agree or disagree with this statement? State your position clearly and provide strong arguments.

⌛ Development Economics

• The role of industrialization in development economics.
• What is the current outlook for growth and development in Africa?
• Nigeria’s development: modernization and dependency theories .
• Globalization in the new product development.
• Latin America economic development.
• Competing theories of economic development.
• Theories of development and millennium development goals.
• Economic prospects for the global economy impact on patterns of migration in developing countries.
• Poverty as a peculiarity of economic development.
• The relationship between sustainable development and economic growth.
• Human development: democratization and economy relations.
• Tourism role in economic development.

• The economic development of Indonesia.
• The role of the World Trade Organization (WTO) for the developing countries.
• Future of the World Bank . Analyze the current economic state in the world. Then, forecast the Word Bank development throughout the time. How will any transformation influence the financial vector of the countries?
• Marxist theory of development . Is it effective? How is it implemented nowadays? Suggest possible improvements for the Marxist approach to make it more sufficient.
• Jordan’s economy and its comparison with Qatar. Both countries are considered to be developing. However, they are on different economic levels. Compare and contrast the national economies of both countries. Analyze the catch-up effect. Discuss the standards of living, unemployment rates, economic growth rates of both countries.
• GDP growth rate and economic future of developing countries . Select three developing countries. For instance, consider Afganistan, Iran, and Bangladesh. What are their economic growth rates? Assume the financial future of the chosen countries. How to prevent poverty here? How to make them developed countries, not developing ones?
• The role of ethnicity in economic development. How the ethical vector affects economic activity? Is ethnic diversity good or bad for economics? What are some threats of ethnicity for economic growth? Suggest possible commerce solutions for overcoming the problem. Provide clear arguments and appropriate examples to support your ideas.

🤲 Econometrics Paper Topics

• The multiple regression model and its relation to the consumer.
• Statistics: chi-square test and regression analysis.
• Independent samples t-test with SPSS.
• P-value definition and role.
• Relationship between population and economic growth through econometric modeling.
• A linear regression analysis of a product.
• Quantitative and analytical techniques for managers.
• Predicting unemployment rates to manage inventory through advanced econometrics analysis.
• Multiple regression and correlation.
• The role of applied econometrics in economic science development.
• What econometric models are applied for?
• The application of econometric models for labor income analysis.
• The history of econometrics as a science.

• Empirical relationships and theory testing in economics.
• Okun’s Law in Econometrics . Discuss the relationship between output and unemployment through econometric analysis. What Okun’s Law is applied for?
• Regression analysis of business statistics . Analyze the ways of estimation of a correlation coefficient. Comment on the relationship between the variables. Provide the regression results.
• Linear regression of job satisfaction . Using econometric modeling, analyze three concepts: – Association of benefits and intrinsic job satisfaction – Association of benefits and extrinsic job benefits – Association of benefits and overall job benefits Compare and contrast the results and make the corresponding conclusions.
• Implementation of econometrics in everyday life . From first sight, econometrics seems to be too complicated. However, knowledge of this subject can be helpful in everyday life situations. Think about the field where econometrics might be useful for ordinary people. Provide appropriate examples to support your ideas.
• The rules of data search for econometric analysis . Explain how to select and analyze data for further analysis. What are the credible sources? How to prevent possible difficulties of data examination?
• Topics in Structural VAR Econometrics by Gianni Amisano. Provide a brief overview of the book. What key econometric issues does the book cover? Emphasize on the crucial role of the book while studying econometrics.

👨‍🏫 Great Economic Topics: Assignment

Are you excited about the diversity of interesting economic topics we can offer you? Have you chosen some ideas already?

Don’t leave our page yet! We have more topics to share with you.

The following section includes a variety of ideas divided by the type of assignment you need to complete. We did it for your convenience. A thesis topic should be more complex and developed than an essay topic, right? So, here you can find outstanding ideas for all kinds of economic assignments.

📝 Economics Essay Topics

• Rethinking microeconomics competitiveness .
• Government regulation of market economics .
• Monetary policy management and its effects on the economy .
• Effects of hedge funds on the global financial crisis .
• Banks, bank firms, and financial intermediaries .
• Managerial economic opportunity cost .
• The link between borrowers’ risk and mortgage lending .
• Problems in banking regulation .
• Financial markets and liquidity .
• The contribution of the luxury fashion industry in the economic development of the world .
• How has the role of the IMF changed since it was established in 1945?

• The international monetary fund and the World Bank.
• Bank of America: managerial economics and analysis.
• Foreign direct investment benefits for Asian countries.
• Global financial crisis problems. Analyze the issues caused by the financial crisis. Suggest some action plans to tackle the effects of the crisis. A small hint: as an example, you can use the world economic crisis of 2008. Also, consider discussing the financial crisis caused by the COVID-19 pandemic of 2020.
• Tax cuts in Keynesian economics . Briefly introduce the economist John Maynard Keynes and his economics theory. Analyze his approaches to aggregate demand, multiplier effect, and fiscal policy. What was his tax cuts method? Do you consider it sufficient? State your position clearly and provide strong evidence to support your opinion.
• Difference between microeconomics and macroeconomics. Need to write a compare and contrast essay? Use this topic. Analyze the similarities and differences between microeconomics and macroeconomics. How do they influence each other? Structure your paper correctly, so the readers can quickly get your ideas.
• The relationship between money supply and inflation. Briefly introduce the notions of money supply and inflation. How are they connected? For better understanding, provide appropriate examples of the relationship between money supply and inflation.
• Globalization, urban political economy, and economic restructuring. Comment on the globalization impact on world economics. Examine the positive and negative sides of globalization. How can financial restructuring improve the economic situation in the world? State your arguments clearly and support them with examples.
• The issue of global trade imbalances in the US and China. What are trade imbalances? Comment on the world policymakers’ reaction to growing inequalities. Do global trade imbalances threaten free trade? Is it possible that global trade imbalances be sustained? Suggest some ways to reduce global imbalances.

📜 Economics Term Paper Topics

• Factors that influence international business.
• The modern global economic problems.
• Poverty as the deprivation of capabilities.
• Globalization and the economics of child labor.
• Sharing economy: benefits and difficulties.
• Behavioral economics and finance.
• Trade liberalization in international trade.
• The banking industry and interest rates .
• Public debt in managing macroeconomics.
• The significance of Adam Smith’s “invisible hand” concept in modern economics.
• Microeconomics principles in the flying automobiles industry.
• The convergence of world economies .
• Causes and consequences of the 2008 financial crisis.

• Federal reserve’s influence on interest rates.
• Managerial economics and demand. Examine the theory in managerial economics. What are the types of demand? Compare and contrast them. Analyze the factors that affect the demand for goods and services.
• Marxism perspective in production . Provide a brief overview of Max’s approach to production. Analyze the means, relations, and modes of production. Was Marx’s position regarding production effective? How could it be improved?
• Private and public finance initiative. This topic is beneficial if you are searching for a compare and contrast essay idea. Examine the advantages and disadvantages of both finance initiatives. Moreover, consider the risks of private and public finance initiatives. Which one is more effective, in your opinion?
• David Ricardo’s model of international free trade. Write a well-structured position paper regarding David Ricardo’s model. What are the positive and negative sides of the model? To make your essay persuasive, discuss David Ricardo’s model of international free trade with the other students. Considering all the opinions you have heard, state your position.
• Adam Smith’s understanding of capitalism. Explore Adam Smith’s perception of the capitalistic approach. Briefly introduce the Keynes’ and Marx’s economic theories. Compare and contrast Smith’s understanding of capitalism to Keynes’ and Marx’s perceptions. Whose arguments are the most widely used in international economics nowadays?
• Catch-up effect . Explore the catch-up growth phenomenon. How to explain the hypothesis that developing countries usually develop with faster rates than wealthy counties? To support your ideas, provide an example of developing countries that are experiencing the catch-up effect. An appropriate statistical data would be helpful for this assignment.

📚 Economics Thesis Topics

• The difference between the surplus and the neoclassical theories of general equilibrium .
• Post-Keynesian and Austrian criticisms of the standard neoclassical view of competition .
• The impact of premature finance liberalization on macroeconomic and financial stability .
• Strategic cost and managerial accounting in the UAE.
• International wage differential and migration between Germany and Turkey .
• The current impact of inflation and unemployment on Germany’s political and economic system.
• Understanding of the contemporary labor market by the Marxist concept of exploitation .
• A critical assessment of the pros and cons of selected financial derivatives .
• Corporate governance and informational disclosure on Internet financial reporting: the Saudi Arabia evidence.
• Role of international financial institutions in the 2008 financial crisis .
• The different roles played by the central bank, depository institutions, and depositors determine the money supply .

• Remittances role in spurring global economic growth.
• Cultural diversity in international trade and international business management through globalization . This topic will perfectly suit and undergraduate majoring in the MBA program. Investigate the cultural diversity in international trade. Does it have a positive or negative influence on world economics? Suggest some ways on how to promote diversity and equity in international trade.
• Interest rate disparity between RBA and major Australian banks . If you are looking for a master’s thesis idea, consider this topic. People who are interested in finances and banking will like it. Compare and contrast RBA and major Australian banks. State your position regarding the given financial institutions clearly.
• International microeconomics trade dispute case: US-China dispute on the exportation of raw materials . Provide the historical background of the US-China dispute on the exportation of raw materials. What was the government’s’ response to the debate? What regulations should have been changed to prevent the conflict? Suggest some ways how to improve international trade to minimize the risks of disputes.
• The Globalization Paradox: Democracy and the Future of the World Economy by Rodrik . Your bachelor thesis may look include a book or an article analysis. Investigate the work The Globalization Paradox: Democracy and the Future of the World Economy By Rodrik. State your position regarding the given book. How can the knowledge from this book be implemented in economic science?
• Effect of a permanent increase in oil price on inflation and output. What threats growth as a result of the rising cost of oil? Discuss the effects of a rise in oil prices on inflation and output. Also, analyze the effects of the response of the Reserve Bank to the oil price increase. To make your arguments persuasive, illustrate your findings on the demand-aggregate supply model.
• Economic growth in Kenya: past and future challenges. Conduct research on the economic development of Kenia. Using economic theories and hypotheses, predict the future of economics of Kenia. What challenges should the government and citizens be ready for? Note: any other county of your interest can replace Kenia here.
• The domination of financial accounting on managerial accounting information. This topic is suitable for both: master’s thesis and the bachelor’s thesis. Develop the idea by providing strong arguments and appropriate examples.

📈 Economic Topics for Project

• Direct sales approach for selling crude oil in Nigeria .
• John Locke’s and Karl Marx’s economic ideas.
• International financial markets and institutions .
• Banker to the poor: micro-lending and the battle against world poverty.
• European macroeconomic policies and risks .
• China’s banking sector analysis .
• Keynesian explanation of recession .
• The analysis of buying behavior simulation.
• The US unemployment benefits evaluation.
• Economic analysis of the Etihad airways company.
• Finance issues in the book The Big Short: Inside the Doomsday Machine by Michael Lewis .
• Economic impacts on talent management in the UK vs. China .
• Instruments to encourage or discourage FDI and their implications for international business.

• The impact of algorithmic trading on mutual funds performance.
• Economic principles and theories of Adam Smith: a case for free markets and capitalism .
• Keynesianism vs. Neorealism. Explore both economic theories. Create a list of the advantages and disadvantages of Keynesianism and Neorealism. From your perspective, which approach is more effective? To make your project more professional, include appropriate statistics, charts, diagrams, etc.
• Globalization: a blessing or a curse to US middle-class workers? It is a perfect idea for the capstone project in the final year of your university studies. Investigate the issue of globalization from an economic perspective. In your opinion, does it have more benefits or drawbacks? Support each of your arguments with clear evidence or an example.
• Developing economic stimulus packages . Imagine yourself as a leader of a guided project to create economic stimulus packages. What would you include to prevent a financial crisis in a country?
• Sustainable development of economics. Analyze the environmental harm caused by rapid economic progress. Develop a project focused on the protection of the environment under the current production conditions. Suggest more environmentally-friendly ways to produce goods and services.
• A company’s financial analysis . Choose any business pf your interest. It can be Apple, Dior, Samsung, Nestle, etc. Analyze the income statement of a chosen company. Does its budget operate efficiently? What financial threats (if any) does the enterprise face? Suggest possible improvements to increase the gains from sales and the gains from trade.

💡 Tips on Writing an Economic Paper

Have you finally chosen a topic for your economic essay? Are you excited to start working on your paper? Then, the following section is for you. Read it carefully and know the essential tips on writing.

First and foremost, economic papers differ from regular ones. Such written works requite research. Otherwise, there is no opportunity for you to get a high grade.

In case you might be wondering how to write a well-developed research paper, we know how to help you. Our team collected the most useful prompts. So read carefully and implement them in your writing process.

• Select a compelling topic. An appropriate idea is a key to success. So, make sure yours fits the requirements of your professor. Moreover, among a wide variety of economic topics, select the one you are passionate about. Then, you will be able to make your writing process more accessible and pleasurable.
• Find credible sources. No doubts, credible sources paly a crucial role in composing a research paper. Therefore, take time to find appropriate sources. They have to fit your topic and assignment criteria. Make sure you use academic sources for your research. Well-selected credible sources will make your paper more professional.
• Outline your future paper. With an outline, you will be able to keep track of your ideas. Also, it ensures the quality of your paper. Defining your paper structure before writing makes it well-organized and highly-developed.
• Review the literature. No matter what kind of paper you write: theoretical or empirical, the literature will always help you. So, don’t underestimate the power of books. Refer to them, if you need to revise a theory, some economic concepts, notions, etc.
• Formulate a hypothesis. A well-formulated hypothesis plays an essential role in writing a research paper. It helps the readers to understand what you are focusing on. Moreover, it navigates you throughout your research process and makes it more structured.
• Describe your results. After conducting economic analysis, describe your results. What did you find out? What results did you expect to see? Explain how your results can be used in further research.
• Elaborate on your findings. Your findings are the central part of your research paper. So, make sure you state them clearly. Make appropriate conclusions based on your results and adequately summarize them.
• Reference the sources you used . Finding credible sources is crucial, of course. Nevertheless, you also need to cite them properly. Making reference lists is not pure science. So, put enough effort to figure out all the details of references and in-text citations. Also, don’t mess up writing styles. The most popular ones are APA, MLA, ASA, Chicago style, etc. Thus, if you are unsure about something, double-check the formatting requirements.

Thank you for visiting our page! Don’t hesitate to use our essay ideas and tips. And don’t forget to share the article with your friends.

🔗 References

• High School Economics Topics: Econlib
• Writing in Economics: Writing Studio, Thompson Writing Program, Duke University
• All Topics, Economics: tutor2u
• How to Write the Introduction of Your Development Economics Paper: David Evans, Center For Global Development
• Areas of research: Economic Policy Institute
• Organizing an Essay: Jerry Plotnick, University College Writing Centre, Writing Advice, University of Toronto
• Economics: Economist, World News, Politics, Economics, Business & Finance
• How To Write An Economics Paper: Elmer Sterken, Athens University of Economics and Business
• Academic Essay Writing, Some Guidelines: Department of Economics, Carleton University
• Ideas about Economics: TED Talks, Ideas Worth Spreading
• Microeconomics vs. Macroeconomics, What’s the Difference: Investopedia
• International Economics: Journal, Elsevier
• What Are the Various Subfields of Economics: Mike Moffatt, ThoughtCo
• Economics: Board of Governors of the Federal Reserve System
• Generate Topic Ideas Quickly and Easily: Online Research Library, Questia
• The Basics of Essay Writing: UNSW Current Students
• Basic Guide to Essay Writing: Kathy Livingston
• Writing Essays: Learning Development: Plymouth University
• Economic Growth Research Ideas
• Acquisition Essay Ideas
• Trade Questions
• Monopoly Essay Topics
• Procurement Research Ideas
• World Trade Organization Questions
• Banking Research Ideas
• Cost Accounting Essay Topics
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2024, July 7). Economic Topics for Any Paper [with Great Tips & Examples]. https://ivypanda.com/essays/topic/economic-essay-topics/

"Economic Topics for Any Paper [with Great Tips & Examples]." IvyPanda , 7 July 2024, ivypanda.com/essays/topic/economic-essay-topics/.

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IvyPanda . 2024. "Economic Topics for Any Paper [with Great Tips & Examples]." July 7, 2024. https://ivypanda.com/essays/topic/economic-essay-topics/.

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Bibliography

IvyPanda . "Economic Topics for Any Paper [with Great Tips & Examples]." July 7, 2024. https://ivypanda.com/essays/topic/economic-essay-topics/.

Essay on Indian Economy

India’s economy is described as huge, complex and growing. It is one of the most exciting and emerging markets in the world. Since 1951, India has grown as a planned economy. The first few plans focused on growth with the strengthening of the manufacturing sector, emphasising heavy industries to form the backbone of the economy. Other principal areas of planning were agriculture and social development. During the post-independence period and the period of the “Five-year plans”, efforts were focused on identifying the needs of the economy. Further, the economic reforms in the early 90s opened a new chapter in India’s economic history. It gave India an opportunity to shake off the shackles of its past and emerge on the world stage as a progressive nation. This essay on the Indian Economy will help students know about the Indian economy in detail.

Students can go through the list of CBSE Essays on different topics. It will help them to improve their writing skills and also increase their scores on the English exam. Moreover, they can participate in different essay writing competitions which are conducted at the school level.

500+ Words Essay on the Indian Economy

India is on the high road to economic growth. Since 2020, the world economy has declined due to the COVID-19 pandemic. Repeated waves of infection, supply-chain disruptions and inflation have created challenging times. Faced with these challenges, the Government of India has taken immediate action so that it has the least impact on the Indian economy.

The Indian economy has been staging a sustained recovery since the second half of 2020-21. However, the second wave of the pandemic in April-June 2021 was more severe from a health perspective. The national lockdown has affected small businesses, common people and everyone in India. Due to this, the Indian economy has gone down. But now, it is slowly rising up and taking its form.

Role of Agriculture in the Indian Economy

Agriculture is one of the most important sectors of the Indian economy. It supplies food and raw materials in the country. At the time of independence, more than 70% of India’s population depended on agriculture to earn a livelihood. Accordingly, the share of agriculture in the national product/income was as high as 56.6% in 1950-51. However, with the development of industries and the service sector, the percentage of the population depending on agriculture, as well as the share of agriculture in the national product, has come down. Agriculture is the source of food supply. Agriculture is also a major source of foreign exchange earnings through export. The share of agriculture in India’s export in the year 2011-12 was 12.3%. The major items of export include tea, sugar, tobacco, spices, cotton, rice, fruits and vegetables, etc.

Role of Industry in India’s Economy

Industry is the secondary sector of the economy and is another important area of economic activity. After independence, the Government of India emphasised the role of industrialisation in the country’s economic development in the long run. Initially, the public sector contributed the maximum to economic growth. In the early 1990s, it was found that the public sector undertakings were not performing up to expectations. So, in 1991, the Indian Government decided to encourage the role of the private sector in industrial development. This step was taken to strengthen the process of industrialisation in India.

The progress of the Indian economy after independence was impressive indeed. India became self-sufficient in food production due to the green revolution, and industries became far more diversified. However, we still have to go a long way to become a 5 trillion economy by 2025. But, with government effort and the right policymakers, it can be achieved.

Students must have found this essay on the Indian Economy useful for improving their essay-writing skills. They can get the study material and the latest update on CBSE/ICSE/State Board/Competitive Exams at BYJU’S.

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