Why countries are rich or poor, Apuntes de Historia Económica

¡Descarga Why countries are rich or poor y más Apuntes en PDF de Historia Económica solo en Docsity! Why Are Some Countries Rich and Others Poor In order to explain why some countries are rich and others are poor, we have used two variables as tools two develop a solution. This two variables are the GDP per capita growth and the net exports growth of the countries selected, which allows us to state that some countries are richer than others because they have more stable net exports. A sample of 6 random countries have been chosen (Netherlands, Norway, Nicaragua, New Zealand, Nigeria and Niger) in order to prove this hypothesis. First of all, attending to values obtained based on the mean of each country, we can enhance that the countries with the highest GDP per capita growth are Norway (2.55%) and Netherlands (2.27%), as opposed to Nicaragua (0.36%) and Niger (-0.76%) which have the lowest. In addition, the countries with the highest annual growth of net exports are Niger (13.10%) and Nicaragua (6.15%); the lowest are New Zealand and Norway (both 4.26%). If we compare this values, we can observe that the countries that have the lowest GDP per capita growth rate (Norway and Netherlands) happen to have the highest GDP growth rate and the highest exports as well, but also a less stable growth in both net exports and GDP. Furthermore, if we analyze the standard deviations, we observe that the countries with the highest standard deviation in net exports are also the highest in GDP growth (Nicaragua, Niger and Nigeria). This means the values obtained over the years are really spread out, which indicates instability, meanwhile Norway and New Zealand have the lowest values in both variables, which reveals stability and consistency over time. In addition, the third aspect to take into account is the average export growth rate of the countries we have used as a sample. In fact, looking at the annual percentage growth we would observe the highest average export in Nigeria (about a 4.7%), followed by Niger (1.5%). Nigeria has reached a 60% annual growth in 2006, although it is important to remember that it has suffered huge declines in recent years, which indicates high spread out values. In a general meaning as more stable a country is more prosperous it will be. Given this facts, it can be concluded that wealth and welfare are unequally distributed among countries depending on their net exports. After running the research the hypothesis has been proven, net exports stability is directly related to the country’s economic success.