Five benefits to a country’s Economy that skilled people can offer
Answers
Improvements in living standards: Growth is an important avenue through which per capita incomes can rise and absolute poverty can be reduced in developing nations. Professor Paul Collier has argued that “growth is not a cure-all; but the absence of growth is a kill-all.”
More jobs: Growth creates new jobs – although the pattern of employment will also change
The accelerator effect of growth on capital investment: Rising demand and output encourages investment in capital – this helps to sustain GDP growth by increasing LRAS
Greater business confidence: Growth has a positive impact on profits & business confidence
The “fiscal dividend”: A growing economy boosts tax revenues and generates the money to finance spending on public and merit goods and services without having to raise tax rates
Potential environmental benefits – as countries grow richer, they have more resources available to invest in cleaner technologies. And, as nations develop, energy intensity levels fall