If, as economist Alwyn Young has suggested, high economic growth rates in Singapore are not a result of technological progress, how are growth rates in Singapore expected to change over time?

Question

Quizplus · Accepted Answer

Without technological progress, growth rates in Singapore are not sustainable and are likely to decrease over time. This is because productivity growth, which is largely driven by technological progress, is a key driver of economic growth in the long run. Without it, the economy will eventually reach a point where it cannot increase output unless it devotes more resources, which will eventually become scarce. This is known as the "limits to growth" problem, which is a fundamental concept in macroeconomics. Thus, while short-term growth may be possible even without technological progress, sustained long-term growth is unlikely without it.

If, as Economist Alwyn Young Has Suggested, High Economic Growth