The relationship between per capita gross domestic product and both Assignment

The relationship between per capita gross domestic product and both secondary school enrolment rate and bank rates - Assignment Example The paper tells that gross domestic product is the measure of a country’s total productivity level. It refers to the total cost of output in commodities. Elements of gross domestic product include ‘consumption, investment, government purchase, and net export’. Both consumption and net export of an economy are factors of the territory’s available economic resources and its level of disposable income. With high levels of disposable income, people are able to purchase into consumptions as well as invest into export dealings. Investments, on the other hand, refer to monetary value of resources that are used for production processes. Whether through private or public sector, investment rates and levels depend on the availability of resources and the capacity to acquire such resources through savings or borrowings. The last component of gross domestic product is government expenditure through central government, local governments, and governmental institutions in public utilities such as education. Per capita gross domestic product measures the net output per person. It therefore depends on a country’s population size and may have a different trend from the real gross domestic product. One of the fundamental contributors to economic growth is the availability of resources for injection into the economy. Since financial institutions are a source of monetary resource through provision of loans, they are of prime importance to economic growth. Provision of loans to investors and private consumers for instance has direct effects on consumption, investments, and net export... It refers to the total cost of output in commodities. Elements of gross domestic product include ‘consumption, investment, government purchase, and net export’ (Mankiw, 2008, p. 496). Both consumption and net export of an economy are factors of the territory’s available economic resources and its level of disposable income. With high levels of disposable income, people are able to purchase into consumptions as well as invest into export dealings. Investments, on the other hand, refer to monetary value of resources that are used for production processes. Whether through private or public sector, investment rates and levels depend on the availability of resources and the capacity to acquire such resources through savings or borrowings. The last component of gross domestic product is government expenditure through central government, local governments, and governmental institutions in public utilities such as education (Mankiw, 2011, p. 198). Per capita gross domesti c product measures the net output per person. It therefore depends on a country’s population size and may have a different trend from the real gross domestic product (Boyes and Melvin, 2007, p. 389, 390). One of the fundamental contributors to economic growth is the availability of resources for injection into the economy. Since financial institutions are a source of monetary resource through provision of loans, they are of prime importance to economic growth. Provision of loans to investors and private consumers for instance has direct effects on consumption, investments, and net export (Brooks, 2008, p. 502; Yartey et al, 2008, p. 22). Credit rates of banks, which is a factor to their lending capacity determines availability of loans to investors and consumers. Similarly, lower