Economic Development Record Case Study: Malaysia

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Economic Development Record . Case Study : Malaysia

INTRODUCTION

Economies all around the globe develop over time depending on the policies that they undertake to utilise the resources within their boundaries . Nations that utilise their resources experience economic growth and there is great inflow and outflow of goods and services in those nations . Economic growth means that the nation is utilising its resources efficiently and this has resulted into increased productivity within the various sectors of the economy . Industries within the nation increase

as a result of the improved economic performance that will result to the creation of more employment opportunities hence reducing unemployment levels in the nation (Daquila 2004 . Due to the increase in the number of industries and output in the already existing industries , employment opportunities increase and this brings about a reduction in the number of citizens unemployed . Unemployment is very crucial in calculating a nations GDP which is an indicator to a nations performance . Economic growth depicts an increase in pa capita income This is the income associated with every individual in the economy although they may not have it in their possession (Daquila 2004 . Pa capita income is calculated by dividing the overall value of the economy proportionately divided between the nation 's overall economy . On the other hand , Daquila (2004 ) defines economic development as the improvement in the livelihood of individual citizens of a nation together with that of the systems that are in place in the nation . A nation 's system involves economic , political and social framework from which the economy operates in . All the above plus economic growth defines economic development

Economic performance is measured using various tools that include GNP and GDP . GDP estimates the economic performance giving consideration to internal and external trades (Daquila 2004 . In establishing the GDP consideration is given to consumption in the nation , expenditure by the Government , investments in the nation , trades in the nation that is imports and exports . Consumption comprises of perishable non-perishable goods and services within the nation . In determining the non-perishable goods they are assumed to be products that will last for a period of three years from the date of manufacturing . GNP refers to the difference between imported products and services and the exported products . The value of this difference added to the value of products services generated within the economy results to the GNP . To evaluate the economic performance of a nation , a number of indicators are used to measure exactly how the economy is progressing towards its economic objectives

A nation has to determine the level of consumption of its individual citizens (Todaro 1997 . The level of consumption means the proportion an individual spends after receiving their income . The remaining part of the income is saved . The consumption level of a nation determines the amount of savings in the economy . Savings on the other hand stimulates growth in the economy . When individuals increase their savings , the financial institutions hold more money thus the cost of accessing...