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Baumol’s Disease: Growing Pains and Hidden Opportunities in the Service Economy
”Baumol’s Disease” is a term coined by American economist William Baumol In the mid-1960s, the concept was proposed when studying the costs and prices of artistic performances to describe the following phenomenon: the costs and prices of artistic performances have been rising, while the costs and prices of other commodities have shown a downward trend. A large number of subsequent studies by Baumol himself and other economists have shown that this is not a special phenomenon, but a general rule that prevails in the service industry, and is true in both developed and developing countries. In fact, many economists, such as Philippe Agion, have dubbed Baumol’s disease “Baumor’s law,” alongside…
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Global Economies Navigate Challenges as Technology and Regulations Reshape the Financial Landscape
In the post-epidemic era, China and the global economy are once again at a crossroads. On the one hand, with the support of many factors such as policies, China’s economy is showing signs of recovery. In September, China’s official manufacturing purchasing managers’ index rose above the 50 line for the first time since March. Not only that, the incremental growth of social financing, the narrowing of export decline, and the stabilization of the consumer price index – many data also confirm the stabilization of China’s economy. On the other hand, there are also hidden worries in the global economy. The latest “World Economic Outlook” of the International Monetary Fund (IMF)…
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Vietnam’s Economy: From “Roller Coaster” to Promising Growth
It merely required a few months for Vietnam’s economy to transition from plummeting off the altar to maintaining a favorable stance. According to official Vietnamese data, Vietnam’s GDP growth rate in the initial half of 2023 stood at 3.72%, significantly lower than the previously set growth target of at least 6.2%. The growth rate of only 3.32% in the first quarter, combined with the remarkable 8% growth in 2022, evokes a sensation akin to a “roller coaster.” Although there was a marginal improvement in the second quarter (4.41% growth), a substantial journey lies ahead to reach the annual growth target of 6.5%. The International Monetary Fund, in its June report,…
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ndia’s Female Labor Force Participation: A Challenge to Economic Growth
If the forecast of the United Nations Population Division is correct, then India’s population has reached about 1.425 billion in mid-April, surpassing China to become the most populous country in the world. Some analysts see benefits in India’s huge young population, but others worry that the shortage of female labor in India will become a shackle and limit the use of India’s demographic advantages. In fact, India does not lack a female population. The reason for the shortage of female labor force is the low labor force participation rate of Indian women. The number of women in India’s workforce has been declining for years, largely making it one of the…
