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Technology, Economic
Growth & Development, and
Impediments
Econ 304
By Wanja M. Douglas
Chuka University
November 1, 2024

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 Click IS
WHY toTECHNOLOGY
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IMPORTANT?
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• Technology Improves the quality and quantity of goods and services

produced by using different types of economic resources, such as
capital, labor, land, and natural resources.
• For example, technology can help farmers to increase their crop yields,
reduce their costs, and protect their environment.
• Technology enables the development and application of new ideas and
inventions that can solve existing problems or create new possibilities.
For example, technology can help scientists to discover new sources of
energy, cure diseases, or explore space

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WHY toTECHNOLOGY
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IMPORTANT?
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• Technology fosters creation and diffusion of knowledge and information,

which are essential for innovation and learning. For example, technology
can help researchers to collaborate across borders, access global
databases, or publish their finding.
• Technology continues to influence the demand and supply of goods and
services in the market, as well as the prices and profits.
• For example, technology create new markets or products, increase
consumer preferences or expectations, or lower production costs or
barriers to entry.

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IS TECHNOLOGY
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MAGIC
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BULLET ?

✓Technology can also affect the social and environmental aspects of the
economy, such as income distribution, employment, education, health, culture,
and sustainability.
✓For example, technology can create new jobs or skills, improve living standards
or well- being, or reduce poverty or pollution .
✓Hence, technology has a significant impact on the economy in various ways.
✓However, technology is not a magic bullet that can solve all economic problems.
✓Technology also poses some challenges and risks, such as inequality,
unemployment, ethical issues, or security threats.
✓Therefore, it is important to have appropriate policies and regulations that can
maximize the benefits and minimize the costs of technology for the economy
and society 4 4
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TECHNOLOGY AS A DRIVER
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FOR GROWTH

✓Technology can impact economic growth in a number of ways.

✓First, it can lead to increased productivity. When workers have access to better tools
and technologies, they can produce more goods and services in a given amount of
time.
✓.Productivity is a measure of how much output can be produced with a given amount of
inputs, such as labor and capital.
✓Technology can increase productivity by automating tasks, improving efficiency, and
reducing costs
✓This can lead to lower costs and higher profits for businesses, which can then be
reinvested in further innovation and growth.
✓Second, technology can create new jobs and industries. As new technologies emerge,
they often create new markets for goods and services.
✓Third, technology can improve the efficiency of markets. By reducing information costs
and transaction costs, technology can make it easier for buyers and sellers to find each
other and make deals. This can lead to more efficient markets and higher economic
growth 5
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TECHNOLOGY & EFFICIENCY
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✓The development of information and communication technologies (ICTs) in

recent decades has had a major impact on productivity in many sectors of
the economy.
✓For example, ICTs have enabled businesses to streamline their
operations, improve customer service, and reach new markets
✓The development of the assembly line in the early 20th century
revolutionized manufacturing by automating many tasks that were
previously done by hand. This led to significant increases in productivity
and economic growth.

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TECHNOLOGY AND JOB
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✓Technology also creates new jobs.

✓As new technologies emerge and existing technologies become more
widely adopted, new jobs are created in the development, production, and
support of these technologies.
✓For example, the rise of the internet has created new jobs in web
development, social media marketing, e-commerce and content creation

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TECHNOLOGY AND QUALITY
title styleOF LIFE

✓Technology also improves the quality of life by providing access to new

goods and services, improving healthcare and education, and making
transportation and communication more efficient.
✓ For example, the development of the smartphone has revolutionized the
way we communicate, access information, and shop.
✓Similarly, advances in medical technology have led to new treatments and
cures for diseases, and advances in educational technology have made it
possible for people to learn from anywhere in the world.
✓Overall, technology plays avital role in the economy, driving economic
growth, creating new jobs, and improving the quality of life.
✓As technology continues to evolve, it is likely to have an even greater
impact on the economy in the future.
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CHALLENGES
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✓While technology has the potential to boost economic growth, it also

presents some challenges.
✓One challenge is that technological change can lead to job displacement.
✓As new technologies are adopted, some jobs may become obsolete.
✓This can lead to unemployment and social unrest.
✓Another challenge is that the benefits of technological change are not
always evenly distributed.
✓Some people may be able to adapt to new technologies more easily than
others. This can lead to inequality and social division.
✓Despite the challenges, technology also presents significant opportunities
for economic development 9 9
CHALLENGES
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✓Developing countries like Kenya, can leverage technology to leapfrog

traditional stages of development and achieve rapid economic growth.
✓Technology can also be used to address some of the world's most
pressing problems, such as climate change and poverty.
✓Technology is a key driver of economic development. It has the potential
to increase productivity, create new jobs, and boost economic growth.
✓However, it is important to manage technological change carefully in order
to minimize the negative impacts and maximize the benefits.
✓Studies have shown that the net effect of technology on employment is
positive in the long run.
✓As new technologies create new industries and jobs, they also lead to the
decline of old industries and jobs.
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BE PRODUCTIVE HENCEFORTH!

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