82nd International Atlantic Economic Conference

October 13 - 16, 2016 | Washington, USA

The determinants of economic growth: An empirical investigation of North Carolina

Saturday, October 15, 2016: 9:00 AM
Kingsley Nwala, Ph.D , Walter Davis School of Business and Economics, Elizabeth City State University, Elizabeth City, NC
This papers examines the determinants of economic growth in North Carolina. North Carolina is a state in the southeastern region of the United States. Like other states in the US, North Carolina was adversely affected by the 2007 recession that resulted in high unemployment rates, the housing market collapse, manufacturing sector collapse, increase in consumer bankruptcies, huge budget deficits, banking sector distress, etc. Following the 2007 recession, the economy of North Carolina transitioned from reliance on tobacco, textiles, and furniture-making to a more diversified type with engineering, pharmaceuticals, energy, biotechnology, food processing, vehicle parts, accommodation and food services, health care, and finance sectors. The state is once again thriving and gradually rebounding from the recession. It is therefore important to empirically ascertain the factors that are responsible for the recent economic growth the state is experiencing. It is hoped that the study’s findings will help policy makers to understand that capital accumulation by itself cannot explain sustained economy growth. This statement is based on the fact that the process underlying economic performance and the growth path of any economy is poorly understood, and the foundation of this misunderstanding can be partly attributed to mixed economic research findings and lack of knowledge about the structural dynamics of the distinct economies.

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