Sustainable Prosperity Through Qualitative Growth: An Economic Analysis Using The Example Of China

Textprobe:
Kapitel 3, Striving for economic growth:
In the previous chapters we discussed economic growth and its different components. We also said that measuring and analyzing the dynamic process of growth is a more than difficult task. But the theoretical instruments for that task exist.
3.1, Potential dynamics and structure dynamics:
To analyze the growth process of an entire economy we normally make use of a basic formula that includes all factors leading to changes in the economy s output. The production function fulfills that purpose:
C = f (L, K, R, T) with C being the economy s potential output, L labour capacity, K capital stock, R natural resources and T the technological capacity. The pure production function represents the potentially amount of available production factors so that we need to replace these by the actually used amounts and obtain:
Cn = f (Ln, Kn, Rn, Tn) , where Cn represents the economy s entire output with the respective factors used. Oppenländer excluded K and R for reasons of simplicity, but we shall still include them to show the entire factor group.
As this thesis shall not be primarily based on mathematical relations but observations and linkages between causalities, will we only lead the derivation to this point, as it explains the interrelations sufficiently.
This function s purpose is to enable us to analyze in detail how changes in a single factor change the overall output. The method of potential dynamics lets us scrutinize which factor caused economic changes. The production factors are of course aggregated and sum up all resources belonging to that specific category.
Structure dynamics expound economic changes based on innovative changes instead of quantitative changes. This method is thus not primarily a quantitative but rather a qualitative analysis.
Oppenländer dismisses purely quantitative contemplations and thus the notion of proportional growth, meaning the output growing proportionally to the increase of

Samuel Jung was born and raised in Halle (Saale),Germany, where he also received his first Bachelor of Science in International Business Economics from the University of Halle (Saale), where he is currently studying economics and dealing with the relationship between industry and the state as well as with sustainable prosperity. Samuel gained practical experience, inter alia, during developmental assignments for NGOs operating in the field of Mental Health Care in South Africa. Furthermore, he gained practical experience from positions in a successful Sino-German business consultancy in the aviation sector in China and the German National Academy of Sciences Leopoldina, where he supported the Department of International Relations. Currently, he is also a board member of the South African German Network e.V..