Role Of Technology In Economic Development Economics Essay

Economic development of all countries of the world. Economic development depends on quantity of factors. Technology for monetary development of any country is an essential aspect. All developed and under developed countries current economic climate, agriculture, industry, transport, banking, health, education and improved upon technology in all sectors are trying to install.

Meaning of technology

Technology equipment and services for the production of monetary resources or technology that assist in learning.

Adoption of technology

Technology and developing countries by developed countries may well not take up product. Major markets of advanced professional countries, high income, sufficient capital resources, recognized by good management and technical skills are the least developed countries, small income, capital shortages, unskilled labor is abundant. Move forward technology, so, what can be done for these countries. Growing countries should choose appropriate technology to provide the needed employment is based. The development level of the country's current economical policy framework should be within.

Importance of Technology

Technology is important anticipated to pursuing reason.

Increase in labor productivity

With labor production growth in the use of technology. If we help the agricultural sector, for example, a farmer with tractor could work more than ten farmers.

More real human capital

Human capital means skilled and educated labor force when we improve the use of technology the abilities in labor can also increase; it leads to human capital formation.

Providing better living standard

We enjoy living facilities per capita income and the quality of life decision. Technology, nationwide income and per capita income development using, could it be causes better quality of life.

Output increases

As labor efficiency increases the production level increase of country. This cause upsurge in national income of a country.

Rapid increase in supply

According to Keynes swift increase in resource is possible by making use of technology. If demand of any commodity increase, it is possible to match the demand by making use of technology. It takes out the threat of inflation.

Trade

The basis of international trade is "a country exchanges its surplus production with the excess production of another country". So by using technology creation and international trade can also increase.

Advancement in infrastructure

Technology itself is the component of infrastructure. by using growth in technology we can improve. such as use of atomic energy, use of gas instead of petrol, and computer e. t. c

No wastages of resources

Technology helps in eliminating wastages of resources in development. You'll be able to have more outcome with same inputs in the existence of technology.

Cost minimizing

According to tha Gallbraith "The increasing use of technology in a modern culture as the efficiency raises. growth of countrywide income and charge control in results

Economics of scale

It means that advantages are attached with high creation level. in this modern age we know that the use of technology creation will increase therefore cost will reduce and profit increase.

Overcome vicious group of poverty.

Withy the utilization of technology income of the country increase. When upsurge in income saving will increase, demand increase and as a result investment and capital creation will increase that help defeat the vicious group of poverty.

Improvement of Quality

When we use most advanced technology in the development of new goods then their quality of product will improve. if we take the exemplory case of textile industry the quality of machine made fabric is better than the quality of hand made clothes. And their production will be more.

Use ful labor force

Skilled labor may also be used to get more development. if labor will be highly skilled than they learn how to use the machines effectively. That can also be profitable for the country and industry.

What is Technology and Why is it important

Economists define technology as ideas, or knowledge, that help us produce productivity from inputs. Having more technology means being able to produce more result with a given amount of inputs.

Technology can be in various shape. It might be an engineering discoveries like invention of airplane, light bulb, basic knowledge like calculus. Services idea like all-in-one shopping of Wall membrane Mart.

Technology is also important because regular inputs are characterized by diminishing returns the more of an type we use, possessing others constant, the less end result each additional device is able to produce. However, since the same idea is open to the entire current economic climate, we do not run into diminishing returns with technology.

Technology works out to have a very important role to play in conquering the limitations enforced by diminishing results to labor and capital. At many points ever sold, prophecies of doom have been announced based on the idea that scarcities in a single input or another (land, oil, people) will bring economic development to a grinding halt. These prophecies have been disproven up to now usually because of scientific progress: we have learned to create more with less of the scarce inputs, thus reducing the potential issues poseniteness of available resources

The easiest way to think of how important technology is, is to look at a simple exemplory case of two countries, Brainland and Brawnland, that contain both produced at 5% per annum for the last years. Brawnland can attribute 4% of its growth to increased inputs and 1% to raised use of inputs.

Brainland can feature 4% of its progress to better use of inputs and 1% to increased inputs.

The Development of Technology

In order to comprehend the special characteristics of technology, we need to understand the under-lying economics. Typically, we classify economic goods along two proportions: rivalry and excludability.

Excludability

The degree of excludability of a good is the level to that your owner can limit access to the merchandise to the people who pay for the privilege of using the merchandise.

Non-excludable goods often tend to have spillovers of costs or bents that aren't captured by the maker (owner) of the nice; these are also known as externalities.

If these externalities are positive then your good is under-produced by the marketplace; government involvement to increase development may be necessary (open public goods). Additionally, the ex-ternalities may be negative so that the good is over-produced by the market (tragedy of the commons); administration intervention to limit development may be necessary.

Rivalry

A rival good is a good that when utilized by one person, cannot be used by someone else. Several people can concurrently use a non-rival good; use by one will not preclude its use by another.

The basic characteristics of non-rival goods implies that lots of time and money must be put in to come up with the product but once it is established the nice becomes relatively easy to replicate.

New technology can be thought of as new ideas that permit us to produce more result with the same amount of inputs. Inside the classication specified above, ideas are non-rival: the use of an idea by one will not preclude the use of a concept by another.

Problems being faced in diffusion of Technology.

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

Illitericy problem

Literacy rate of growing country is suprisingly low. In pakistan literacy rate is 52% which is not satisfactory. Because of illiteracy people have no idea of technology.

Resources are misallocated

Misallocation of resources reduces the output of the resources low production creates the problem of low income and saving capacity of nation, so the people are unable to purchase modern technology.

Lack of capital.

In underdeveloped countries there exists insufficient capital due to low per capita income. That is why they cannot find the money for mechinery and new technology to improve there business or increase it.

Lack of Efficient administration

In expanding countries like pakistan, officers donot know how to use the new technology nad have no technical training. they do not know about use of new machines.

Measure to eliminate the problems

Different ways can be handy to remove the problems of technology diffusion.

Services and training center

Training centre can helpto promote the economy to equip the labor with training and complex skills

Useful labor force

Skilled labor can used the advanced technology. To increase the production and profit percentage of the industry that can help the overall economy.

Removal of tax.

To encourage business personal savings, tax concessions should be allowed to those who save higher ration of the profits and spent for transfer of technology.

Efficient capital market

If we've an efficient market i. e. lenders and financial institutions then people would be induces towards personal savings and use for import of technology

Market problems

Due to limited market segments and slow start use of modern tools is not affordable

Small incentives

Due to insufficient bonuses in pakistan most of the people want to work abroad. That's why almost all of the skilled people prefr to work in other coutries.

Measure to eliminate problems

More guidance

Proper direction should be provided to buyers in complex, financial and marketing concerns. Many people have funds but are unable to invest due to ignorance

Educational facilities

In under developed countries maximum universities should be set up for the individuals. Knowledgeable people can invent and innovate.

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Conclusion

The need for information technology in today's world can't be underestimated as it includes dominated almost all the fields of business and industry like the service sector and one having no touch with this technology wouldn't normally be able to make any progress in the century to come.

We can say that the importance of technology can't be denied in order to achieve economic development

http://www. learningall. com/2012/07/role-of-technology-in-economic-development-in-pakistan/#. UNdCZW_oSit

http://www. scribd. com/doc/49648787/Role-Of-Information-Technology-In-Economic-Development-Of-Pakistan

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