Economic Growth: An Introduction

Summer Term 2024

Prof. Dr. Jürgen Bitzer

Carl von Ossietzky Universität Oldenburg

1 Why is Economic Growth Important

Under-five Mortality Rate

Relation of GDP and Child Mortality

Distribution of Child Mortality

Statistics on Child Mortality

  • Correlation between child mortality (under 5 years per 1000 birth) and GDP per capita: -0.56

  • Distribution of child mortality (under 5 years per 1000 birth) over time

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1990 2021
Mean 71.60 25.88
Min 6.30 1.70
Max 331.60 115.20
Skewness 1.25 1.49
Kurtosis 0.83 1.55

Maternal Mortality

Life Expectancy

Relation Between GDP p.c. and Life Expectancy

Distribution of Life Expectancy

Statistics on Life Expectancy

  • Correlation between life expectancy and GDP per capita: 0.74

  • Distribution of life expectancy over time

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1960 2021
Mean 54.34 71.73
Min 28.66 52.52
Max 73.76 85.49
Skewness -0.17 -0.33
Kurtosis -1.12 -0.59

Relation Between GDP p.c. and Literacy Rate

Relation Between GDP p.c. and Poverty

Distribution of Changes in Poverty

Statistics on Poverty Share (less than 2.15 USD a day)

  • Correlation between poverty share and GDP p.c.: -0.35

  • Distribution of poverty share over time

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1998 2021
Mean 22.25 2.33
Min 0.00 0.00
Max 79.90 6.60
Skewness 1.18 0.62
Kurtosis 0.28 -0.97

2 Some Stylised Facts

Relation Between GDP p.c. and Capital Stock p.c.

Relation Between GDP p.c. and FDI

3 Distribution of Income

Relation Between GDP p.c. and Income Distribution

Distribution of Changes in Gini Index

Distribution of GDP Per Capita

Distribution of GDP Per Capita Over Time

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1960 2014 2019
Mean 4776.42 21548.87 22032.04
Min 513.30 787.73 251.09
Max 23249.11 147262.56 114100.82
Skewness 1.58 2.35 1.59
Kurtosis 2.06 7.69 2.70

4 Questions to be Answered

The Questions to be Answered

  • Why are some countries rich and others are poor?

  • What are proximate causes for economic growth?

  • What are the fundamental reasons for economic growth?