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Government Policies

 

  1. Open markets - internal and external competition in markets for goods and services
  2. Promotion of liberal capital market providing a flow of liquidity to finance investment
  3. Protection of private property rights
  4. Scale of government spending - possible crowding out of the private sector if government spending is too
  5. Efficiency of the tax and benefit system - may create disincentives which constrains the active labour supply
  6. Incentives for entrepreneurial activity
  7. Investment in human capital - active labour market policies
  8. Macro-economic stability and credibility of macro economic policy

 

Young, 1994, Asian tiger's success resulted from:

        Rapid accumulation of capital (through high investment)

        Labour (through population growth and increased labour-force participation)

        Government policies of encouraging education, opening economy to foreign technologies, promoting trade, keeping taxes low & encouraging savings (30% of GDP in 'tiger' economies)

        Small state - government spending around 20% of GDP compared to over 50% in Europe

 

 

E-mail Steve Margetts