Unlocking Economic Growth: A System Dynamics Perspective
Keywords:
Economic Growth, System Dynamics, Poverty Reduction, Job Creation, Living Standards, Government PoliciesAbstract
This review explores the profound impact of system dynamics on our understanding of economic development. Economic development is a multifaceted and dynamic process encompassing poverty reduction, human capital development, infrastructure improvement, innovation, environmental sustainability, and good governance. System dynamics, a methodology rooted in mathematical modeling and simulation, offers a comprehensive lens through which to analyze and navigate the intricate complexities of economic systems. The application of system dynamics in economic development is far-reaching. It aids policymakers in assessing the long-term repercussions of policy decisions, delving into regional disparities, ensuring environmental sustainability while promoting growth, evaluating financial stability, and addressing workforce development challenges. This holistic approach offers a profound understanding of the interconnections between various factors and feedback loops that govern economic development. System dynamics models enable scenario analysis, facilitating informed decision-making and iterative policy adjustments. Nevertheless, they come with challenges, such as data availability, model complexity, uncertainty, and the translation of model insights into actionable policies. Despite these challenges, system dynamics stands as a valuable tool to guide economic development strategies towards inclusivity, sustainability, and resilience. As nations continue to grapple with the complexities of fostering economic prosperity, the role of system dynamics in shaping policy decisions grows ever more significant.
References
Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. Crown.
Barro, R. J. (1997). Determinants of economic growth: A cross-country empirical study. MIT Press.
Meadows, D. H., Meadows, D. L., Randers, J., & Behrens III, W. W. (1972). The limits to growth: A report for the Club of Rome's project on the predicament of mankind. Universe Books.
Sen, A. (1999). Development as freedom. Oxford University Press.
Solow, R. M. (1956). A contribution to the theory of economic growth. The Quarterly Journal of Economics, 70(1), 65-94.
Romer, P. M. (1986). Increasing returns and long-run growth. The Journal of Political Economy, 94(5), 1002-1037.
Easterly, W. (2001). The elusive quest for growth: Economists' adventures and misadventures in the tropics. MIT Press.
Published
How to Cite
Issue
Section
Copyright (c) 2023 Journal of Advanced Research in Operational and Marketing Management
![Creative Commons License](http://i.creativecommons.org/l/by-nc/4.0/88x31.png)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.