Role Of Technology In Economic Development Economics Essay

Economic development of all states of the universe. Economic development depends on figure of factors. Technology for economic development of any state is an of import factor. All developed and under developed states economic system, agribusiness, industry, conveyance, banking, wellness, instruction and improved engineering in all sectors are seeking to put in.

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Meaning of engineering

Technology equipment and services for the production of economic resources or engineerings that facilitate acquisition.

Adoption of engineering

Technology and developing states by developed states may non follow merchandise. Major markets of advanced industrial states, high income, ample capital resources, supported by good direction and proficient accomplishments are the least developed states, little income, capital deficits, unskilled labour is abundant. Advance engineering, so, what can be done for these states. Developing states should follow appropriate engineering to supply the needful employment is based. The development phase of the state ‘s current economic policy model should be within.

Importance of Technology

Technology is of import due to following ground.

Addition in labour productiveness

With labour productiveness growing in the usage of engineering. If we help the agricultural sector, for illustration, a husbandman with tractor can work more than 10 husbandmans.

More human capital

Human capital means skilled and educated labour force when we increase the usage of engineering the accomplishments in labour besides addition ; it leads to human capital formation.

Supplying better populating criterion

We enjoy populating installations per capita income and the quality of life determination. Technology, national income and per capita income growing utilizing, is it leads to better quality of life.

End product additions

As labour productiveness increases the production degree addition of state. This cause addition in national income of a state.

Rapid addition in supply

Harmonizing to Keynes rapid addition in supply is possible with the aid of engineering. If demand of a trade good addition, it is possible to fit the demand with the aid of engineering. It removes the danger of rising prices.

Trade

The footing of international trade is “ a state exchanges its extra production with the extra production of another state ” . So with the usage of engineering production and international trade besides addition.

Promotion in substructure

Technology itself is the constituent of substructure. with the usage of promotion in engineering we can better.such as usage of atomic energy, usage of gas in topographic point of gasoline, and computing machine e.t.c

No wastages of resources

Technology helps in taking wastages of resources in production. It is possible to hold more end product with same inputs in the presence of engineering.

Cost minimizing

Harmonizing to tha Gallbraith “ The increasing usage of engineering in a society as the efficiency additions. growing of national income and disbursal control in consequences

Economicss of graduated table

It means that advantages are attached with high production level.in this modern epoch we know that the usage of engineering production will increase as a consequence cost will diminish and gain will increase.

Overcome barbarous circle of poorness.

Withy the usage of engineering income of the state addition. When addition in income economy will increase, demand will increase and as a consequence investing and capital formation will increase that aid to get the better of the barbarous circle of poorness.

Improvement of Quality

When we use latest engineering in the production of new goods so their quality of merchandise will better. if we take the illustration of fabric industry the quality of machine made fabric is better than the quality of manus made apparels. And their production will be more.

Use ful labour force

Skilled labour can besides be used for more production. if labour will be extremely skilled than they know how to utilize the machines efficaciously. That can besides be profitable for the state and industry.

What is Technology and Why is it of import

Economists define engineering as thoughts, or cognition, that help us bring forth end product from inputs. Having more engineering means being able to bring forth more end product with a given sum of inputs.

Technology can be in different form. It may be an technology finds like innovation of aeroplane, light bulb, basic cognition like concretion. Services construct like all-in-one shopping of Wall Mart.

Technology is besides of import because regular inputs are characterized by decreasing returns the more of an input we use, keeping others changeless, the less end product each extra unit is able to bring forth. However, since the same thought is available to the full economic system, we do non run into decreasing returns with engineering.

Technology turns out to hold a really of import function to play in get the better ofing the restrictions imposed by decreasing returns to labour and capital.At many points in history, prognostications of day of reckoning have been announced based on the thought that scarcities in one input or another ( land, oil, people ) will convey economic growing to a grinding arrest. These prognostications have been disproven so far largely because of technological advancement: we have learned to bring forth more with less of the scarce inputs, therefore cut downing the dangers poseniteness of available resources

The best manner to believe of how of import engineering is, is to see a simple illustration of two states, Brainland and Brawnland, that have both grown at 5 % a twelvemonth for the last old ages. Brawnland can impute 4 % of its growing to increased inputs and 1 % to better usage of inputs.

Brainland can impute 4 % of its growing to better usage of inputs and 1 % to increased inputs.

The Production of Technology

In order to understand the particular nature of engineering, we need to understand the under-lying economic sciences. Typically, we classify economic goods along two dimensions: competition and excludability.

Excludability

The grade of excludability of a good is the extent to which the proprietor can curtail entree to the merchandise to those who pay for the privilege of utilizing the merchandise.

Non-excludable goods frequently tend to hold spillovers of costs or sets that are non captured by the manufacturer ( proprietor ) of the good ; these are besides known as outwardnesss.

If these outwardnesss are positive so the good is under-produced by the market ; authorities intercession to increase production may be necessary ( public goods ) . Alternatively, the ex-ternalities may be negative so that the good is over-produced by the market ( calamity of the parks ) ; authorities intercession to curtail production may be necessary.

Competition

A rival good is a good that when used by one individual, can non be used by another individual. Several people can at the same time utilize a non-rival good ; usage by one does non prevent its usage by another.

The basic nature of non-rival goods implies that a batch of clip and money must be spent to come up with the merchandise but once it is created the good becomes comparatively easy to retroflex.

New engineering can be thought of as new thoughts that enable us to bring forth more end product with the same sum of inputs. In the classication outlined above, thoughts are non-rival: the usage of an thought by one does non prevent the usage of an thought by another.

Problems being faced in diffusion of Technology.

Problems can be faced in the diffusion of the technology.some jobs are given below

Illitericy job

Literacy rate of developing state is really low. In pakistan literacy rate is 52 % which is non satisfactory. Due to illiteracy people are non cognizant of engineering.

Resources are misallocated

Misallocation of resources decreases the productiveness of the resources low productiveness creates the job of low income and salvaging capacity of state, so the people are unable to buy modern engineering.

Lack of capital.

In developing states there is deficiency of capital due to low per capita income. That ‘s why they can non afford mechinery and new engineering to better there concern or spread out it.

Lack of Efficient disposal

In developing states like Pakistan, officers donot cognize how to utilize the new engineering nicotinamide adenine dinucleotides have no proficient preparation.they have no thought about usage of new machines.

Measure to take the jobs

Different ways can be utile to take the jobs of engineering diffusion.

Servicess and preparation centre

Training centre can helpto advance the economic system to fit the labour with preparation and proficient accomplishments

Useful labour force

Skilled labour can used the advanced engineering. To better the production and net income border of the industry that can assist the economic system.

Removal of revenue enhancement.

To encourageA businessA nest eggs, revenue enhancement grants should be allowed to those who save higher ration of their net incomes and invested for import of engineering.

Efficient capital market

If we have an efficient market i.e. Bankss and fiscal establishments so people would be induces towards nest eggs and usage for import of engineering

Market jobs:

Due to limited markets and slow bend over usage of modern engineering is non low-cost

Small inducements

Due to miss of inducements in Pakistan most of the people prefer to work abroad. That ‘s why most of the skilled people prefr to work in other coutries.

Measure to take jobs:

More counsel

Proper counsel should be provided to investors in proficient, fiscal andA marketingA affairs. Many people have financess but are unable to put due to ignorance

Educational installations

In under developed states maximum educational installations should be arranged for the people.A Educated people can contrive and introduce.

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Decision:

The importance of information engineering in the present universe can non be underestimated as it has dominated about all the Fieldss of concern and industry including the service sector and one holding no touch with this engineering would non be able to do any advancement in the century to come.

We can state that the importance of engineering can non be denied in order to accomplish economic development

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