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Showing posts with the label economic inputs

Technological and Labor Skill Advancement Increases Economic Output

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Economic systems have both inputs and outputs. When outputs exceed the total inputs, the system is seen as unsustainable. A paper by Brestschger and Valente (2011) delves into a method of measuring the sustainability of resource rich countries. Even though their focus is on oil producing countries, they do have some broader implications.  Most studies seem to rule out the concept of technological progress and trade gains to determine economic viability. Technology has the ability to lower the cost of transactions and increase overall outputs. Thus, technological advancement can lead directly to an export market and more sustainable system.  Net investment is a concept that focuses on the net increases in all the productive assets of the local economy. Such net investment are measured by adding all of the technology and labor productivity increases and subtracting things like depletion of natural resources. The more information available the more accurate such evaluations