TECHNOLOGY AND ECONOMIC GROWTH.

From the very beginning of time, man has strived to improve his way and quality of life. The caveman discovered how to make and use tools, developed a logical sequence for activities and evolved the processes that added value to his life.

What is Technology?

The dictionary meaning of technology is; the branch of knowledge that deals with creation and use of technical means and their interrelation with life, society and the environment, drawing upon subjects.

In other words technology can be defined as

• the application of scientific knowledge for practical purpose.
• the sum of the means and methods of producing goods and services.
• the purposeful application of information in the design, production and utilization of goods and services and in the organization of human services.

Home

What is Economic Growth?

Economic growth is the increase in market value of the goods and services produced by an economy. Economic growth is the increase in a country’s productive capacity as measured by comparing gross national product (GNP) in a year with the gross national product (GNP) in the previous year.

How is technology related to economic growth?

Technology is the key and fundamental requirement for value addition to raw materials and people. It provides the key to unlocking any country’s potential in terms of decreasing overhead costs associated with outsourcing and creating employment opportunities.

Technology is considered the most important of the three (3) of economic growth. Other drivers being capital accumulation and population growth (i.e labour force). In fact, no nation can develop without technology.

The relationship between technology and economic growth has been captured in a vast number of formal models for half a century.

Over the past several decades, the economies of the world have become increasingly linked, through expanded international trade in services as well as in primary manufactured goods, through portfolio investment such as international loans and purchase of stock and through direct foreign investment, especially on the part of large multinational corporations. This all wouldn’t be possible without technology.

Globalization is one of the most frequently used words in discussions of development, trade and international political economy.

As the form of the word implies globalization is a process by which the economies of the world become increasingly integrated, leading to a global economic policy making.

Technology has turned the world to a global market.

Technology plays a fundamental role in wealth creation. Improvement of the quality of life and real economic growth and transformation in any society.