Please look over my paper and see if there is any additional points I should make. The structure needs to look like this. thank you!
GROWTH IN DEVELOPED AND DEVELOPING ECONOMIES: GUATAMALA VERSUS THE UNITED STATES OF AMERICA John Cassidy M3: BOX ECON562_FA21 Professor Luis San Vicente Portes, Ph.D. Guatemala has struggled like many Central and South Through the lens of the theory and institutions: American countries to elevate their economy. "After a "Growth theory traditionally assumed the existence of multi-decade guerrilla war that killed more than 200,000 an aggregate production function, whose existence and people ended in 1996, macroeconomic and political reforms properties are closely tied to the assumption of optimal attracted foreign investment in Guatemala" ("Guatemala." resource allocation within each economy." (Banerjee, Guatemala Economy: Population, GDP, Inflation, Abhijit, and Esther Duflo. Growth Theory through the Business, Trade, FDI, Corruption) "Guatemala has Lens of Development Economics, Dec. 2004, pp. 1-1. ) experienced continued economic stability, but this has not translated into growth acceleration to close the income gap Convergence or divergence in income terms: with rich countries. In fact, poverty and inequality in the Divergence is when the price of an asset and an indicator country are persistently high, with Indigenous Peoples move away from each other. continuing to be particularly disadvantaged." . Convergence is when the price of an asset and an ("Overview." World Bank, 31 May 2021) indicator move toward each other Compared to the United States of America there is a substan Guatemala is experiencing convergence. The countries tial gap between the two countries' Gross Domestic Product. with the highest income level like The United Staes of America does not give faster growth. Guatemala's top On average from 2000 to 2020 the average GDP for sectors are services, agriculture and manufacturing Guatemala is $41, 131,489,715.18. This has helped to elevate the country to have the largest The U.S. is $15,233, 144, 166,777.30. economy in Central America. This means the average income gap between the Institutional quality: two countries is $15,192,012,677,062.10 which is massive. . Institutional quality is a broad concept that captures law, individual rights and high quality government AVERAGE GROSS DOMESTIC PRODUCT OF regulation and services GUATEMALA VERSUS THE UNITED STATES OF AMERICA . Institutional quality and economic development reinforce each other over the longer term, but we argue that institutional quality leads this virtuous circle AVERAGE FOR GUATEMALA Unlocks growth potential and does not intrinsically suffer from diminishing returns COUNTRIES AVERAG . Data shows that countries with high institutional quality NITED STATES have been more successful in adopting frontier technology and productivity since the turn of the $0.00 millennium $5,000,000,0.. 10,000,000,.. $15,000,000... $20,000,00 AMOUNT IN US DOLLARS "To achieve greater economic freedom, the government would have to implement a deep, broad-based, and com- prehensive set of reforms to strengthen its rule-of-law in- References: stitutions. Their relative ineffectiveness is reflected in low Banerjee, Abhijit, and Esther Duflo. Growth Theory through the Lens of Development Economics, Dec. 2004, pp. 1-1. Index scores for the property rights, judicial effectiveness, and government integrity indicators." This is a possible 'Guatemala." Guatemala Economy: Population, GDP, Inflation, move the government can take to help lift the Guatemalan Business, Trade, FDI, Corruption, www.heritage.org/index/ economy even further. country/guatemala. 'Overview." World Bank, 31 May 2021, www.worldbank.org/en/ country/guatemala/overview
