What is unbalanced growth?

unbalanced growth is a situation where different industries of the economy do not grow like each other. Specific sectors of the economy will grow rapidly, while other industries either stagnate or experience a significantly reduced level of growth. When economic growth patterns appear, such as unbalanced growth, the phenomenon usually suggests that the main changes in the overall economy will occur.

There are a number of different theories about what causes unbalanced growth. Some opinions are based on imbalance between import and export associated with the country's economy. This understanding involves production that has once occurred in the country has now moved to another nation. While the goods are still available, it is now imported rather than produced on the domestic market. The result is the removal of jobs in the industry, an increase in unemployment and a reduction in one -off income. Meanwhile, other economic segments of consumer market are falling. This creates generally unbalanced growth. For example, a country may no longer have production facilitiesFor the production of goods that are now imported regularly. Although the equipment exist, the average production costs per unit can cause domestic goods to be unable to compete with the low costs associated with the goods imported.

The industry

industry can sometimes make adjustments to help restore a certain degree of balance of unbalanced growth formulas within the economy. This may include finding ways to reduce production costs as a means to reduce prices and stimulate consumers' purchases on depressive markets. While theorists disagree with what can be done with unalk growth, many agree that there is no magical formula that will apply in all situations. This means that every incident of unbalanced growth must be solved individually, determined origin and appropriate steps to remedy the situation.