The political economies of Panama and Costa Rica Research Paper

The political economies of Panama and rib Rica - Research Paper ExampleCosta Rica & Panama BasicsCosta Rica has an estimated population of 4.6 million as of July 2011 and a growth rate of 1.3% (IndexMundi, 2012). 64 percent of this population is residing in urban centers of which about 94% be white, 3% black, 1% Amerindian, and 1% Chinese (IndexMundi, 2012). Their language is Spanish and the nation has high literacy rate of 94.9% (IndexMundi, 2012). The country allocated 6.3% and 10.5% in health from its gross domestic product in 2009. The nation is located in the border of Caribbean Sea and the North Pacific Ocean. It is adjacent to Panama. Its plenteous geographic argona is blessed with mineral, petroleum, hydropower and commercial resources (IndexMundi, 2012).Panama, on the other hand, has a population of 3.5 million and with a growth rate of 1.5% (IndexMundi, 2012). It has a 0.4 migration per a thousand of populace based and 75% of its people are residing in urban communities (IndexMundi, 2012). Panama has bilingual language English and Spanish with predominant Roman Catholic religion. The country has allocated about 3.8% of its GDP for education and around 8.3% for health. Panama likewise is blessed with copper. Mahogany forests, hydropower and beneficial shrimp culture among many other natural resources of commercial values. Costa Ricas Pol-Economy Clare, Seanz and Trejos (2002) pointed that there are empirical evidences showing the decline of Costa Ricas income per capita in the last decade albeit good frugal standing in economic input. Clare et al. (2002) opined that the situation seemed amazing because the 80s to the 90s was the period when the country is undertaking serious clean up in trading and fiscal performance. Researcher attributed this mediocre 0.7% annual growth rate of income per capita to influential factors of information demographic changes (Clare et al., 2002). The latter meant an increasing figure of fatigue productivity in ind ustrial and agricultural sectors. Economists require that such increase in participation in production, particularly women and immigrants from Nicaragua. While increased number of labor forces meant growth of income, however, economic activity is slowed by poor labor productivity. Labor productivity has only reached a poor rate of 1.57% in Costa Rica compared to 3-4% labor productivity in East Asian countries (Clare et al., 2002). utilize growth accounting, researchers pointed that slow labor productivity growth is reflected in slight negative growth rate of total factor productivity (Clare et al., 2002). This finding is bit odd because the in the last four decades, muckle of technological advancements are poured in this country to support the labor forces in production. Further study victimization sectoral analysis was in fact utilized to determine whether slow growth of productivity is a global phenomenon or merely underplayed by a particular sector. Oddly, Clare et al. (2002) found that the industrial and agricultural sectors continued to reach out high rates labor growth productivity and TFP while the service sector stagnates in the production. Researchers opined that its ironic for the service sector to have decreasing production output noting that its absorbing a large share of resources. As a matter of fact, the service sector of Costa Rica has been allocated with budget high than that of Brazil and Chile (Clare et al. 2002). Economists assumed that the service sector have difficulties in capturing its market. In a disaggregate