Most of the population has lived in villages in the past few years. Those people live in rural areas and use small services. Yet, due to industrialisation, a large number of the population shifted to the cities. In cities, those people work in companies and provide many services. All these services fulfil the needs of the people. Thus, all people use these services and increase economic activities. This increment in these activities became the cause of economic growth. Overall, you can think that urbanisation affects economic growth.
Select this topic for your economic assignment to learn about urbanisation. Also, it gives you data on economic growth. In addition, see how this urbanisation impacts economic growth positively and negatively. Write all this crucial data in your economic task. If you are still confused, refer to economics assignment help UK and get all your solutions.
Positive Effects of Urbanisation on Economic Growth
When a large number of people shifts from rural to urban areas it is called urbanisation. In urban areas, there are various job opportunities and facilities. People use these facilities and equally consume more goods. This consumption forces industries to increase their production rate of goods and services. All these developments and growth in production results in increased productivity, knowledge spillovers, and improved services.
The buying and selling of goods increases the economic activities in the urban areas. This activity overall improves the nation's economy and provides various benefits to the people. With all these pros, you can get a good quality of living, a handsome salary and better facilities. Look at all the listed positive impacts and understand the economy and development:
Increased Productivity
In cities, many workers use the best facilities that enable the growth of factories. This increased number of people can help companies to produce a large quantity of goods. But, this factor's goods are necessary to fulfil the demand of the people. So, this increased productivity leads to the growth in the economy.
Reduced Transaction Costs
All the factories and other facilities are very close to each other. Yet, this proximity can result in the availability of all services. People use these various services very easily at low costs. When many services come in one place, the cost will automatically reduced. Thus, this results in cost effective operations and reduces transaction costs.
Innovation and Knowledge Spillovers
When many people come together to work, they interact with each other. In this interaction, they share their knowledge and experiences with each other. Yet, these data sharing sessions results in the creation of many ideas and thoughts. These ideas result in new innovations and growth.
Demographic Bonus
The main purpose of urbanisation is the population growth. Lots of people come to urban cities for work. This rapid increase in the working population leads to a demographic bonus. These working populations work in companies and earn money. They invest their money in saving and buying other assets.
Improved Services
In the cities, there are many services and facilities. These services are very improved versions that provide good facilities. You can access public transportation, education, and medical facilities. All these services and buildings contribute to economic growth.
Increased Labor Supply
Urbanisation provides a large proportion of working people. These increased quantity of workers are of different specialisation. This division of labour increases the supply of every type of labour. However, this increased labour proportion reduces the labour cost. Also, this reduced labour cost produces the goods at low prices.
Positive Externalises
The urban areas provide a lot of knowledge and experiences. This learning circulates from the people of the urban area to the rural areas. The people of urban areas talk with their relatives in the rural areas to show their growth. This data sharing promotes urban areas and motivates more people to shift to cities.
Negative Impacts of Urbanisation on Economic Growth
Urbanisation also hurts the economic growth. This rapid increment in population leads to many problems. These problems affect the society and economic growth. You can also mention these problems in your task. Also, if you want to learn more about this problem, seek Instant Assignment Help from experts. Those experts are the subject specialists. They will provide the solution to every kind of problem.
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Social Inequality
When lots of people shift from rural areas to urban areas, they have to suffer more. Initially, they must work for long hours to earn money. The rapid growth in the worker supply decreases the labour cost. These income differences create income inequality. This income inequality became the cause of social inequality in society.
Environmental Degradation
The increased population requires more products to fulfil their needs. These goods generate an increased consumption rate and utilise lots of resources. Yet, the factories produce more goods to fulfil the market demand. In this production, the industry uses a large proportion of natural resources. Also, this production generates more pollution. All these things degrade the environment.
Infrastructure Strain
All persons need a home and other facilities to fulfil their needs. These facilities include education and healthcare services. To provide these services, there is a need to create more buildings. This rapid construction of buildings and other infrastructure creates a burden on society.
Social Problems
In cities, there are lots of people. These persons have different mindsets and demands. This demand and mindset sometimes generate social problems. These problems are the crime rate, health issues and other problems in the society.
Congestion
The rapid shifting of the population in urban areas overflows the use of resources and facilities. This unplanned growth results in congestion and a lack of resources. In addition, the over utilisation of the services creates lots of traffic on these services.
Conclusion
To sum up, urbanisation has a major effect on economic growth. This effect is both positive and negative. These positive and negative impacts only depend on the management of society. If the government manages the population effectively, this will affect positively. Besides, if society loses control over the population, it creates a negative impact on the economy.
The negative impact pauses economic growth and development. People face many social and economic issues in this situation. Whereas, in a positive situation, the people avail all the facilities and services at low prices. They utilise all the services easily. All these things contribute to the better quality of living standards. Thus, take all the knowledge about these impacts and use them in your economic task. Moreover, hire expert writers and researchers offered by Economics Assignment Help UK. The experts will do research and draft your task to provide the best quality of content.
