Analyzing the Role of Development on Political Economy: A Report

This report examines the intricate relationship between political economy and economic development, focusing on the impact of European settlements. The study investigates the influence of European colonization on economic growth, particularly analyzing the effects on per capita income, human capital, and technological advancements. It utilizes both qualitative and quantitative secondary data, including economic indicators such as GDP growth, employment rates, and trade conditions, to provide a comprehensive analysis. The report references the work of Easterly and Levine (2016) to emphasize the significance of European settlements on economic development, particularly highlighting the role of skilled human capital and advanced technologies. The research aims to understand how these factors have shaped economic outcomes and to determine the role of European settlement on the economic development. It uses an explanatory approach to clarify existing theories and identify gaps in current literature. The research methodology involves a detailed analysis of economic indicators, including inflation, GDP growth rates, employment rates, production, and trade, to assess the impact of European settlement on economic development.

Running head: ROLE OF DEVELOPMENT ON POLITICAL ECONOMY
ROLE OF DEVELOPMENT ON POLITICAL ECONOMY
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1ROLE OF DEVELOPMENT ON POLITICAL ECONOMY
Table of Contents
Introduction......................................................................................................................................2
Research aim and objectives........................................................................................................2
Research questions.......................................................................................................................2
Literature review..............................................................................................................................2
Research methodology.....................................................................................................................3
Reference List..................................................................................................................................4

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Introduction
Political economy studies the evolution of economic theories like communism and
capitalism that has a crucial role in the economic development. It effectively evaluates the
science that leads to an effective functioning of the socio-economic systems with respect to
demand, supply, production, trade and development. There has been several settlements over the
course of the time. One of them being the European settlement where colonies were settled
outside Europe that comprised of European immigrants. According to researchers, this system
has an enduring impact on the economic development. Thus, it is important to study about the
European settlement and determine its role on the economic development.
Research aim and objectives
The aim of the research paper is to estimate the role of European settlement on the economic
development and estimate the relation between the two parameters.
Research questions
1) What is the effect of European settlement outside of Europe at times of colonization?
2) What is the effect on economic development due to the European settlement?
3) What is the relationship between political economy and economic development with reset
to European settlement?
Literature review
According to Easterly and Levine (2016), the European settlement has a significant
impact on the economic development. It was difficult to make assumptions and proceed with the
task as the data relating to European colonial settlement was absent. Researchers had used the
data of the share of population during colonization with respect to labor, human capital and

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technology. The data has been effective in determining a strong relationship with respect to the
current per capita income and European settlement of colonies. This settlement has a powerful
impact on the current rate of population in Europe and other countries.
Immigrants formed settler communities outside Europe in large number that fostered
political dominance in areas outside Europe. The rise in per capita income is due human capital
and technology, brought by the Europeans. Higher per capita income is normally affected by
labor and technological parameters. Yet, the role of human capital and technology has not been
determined effectively. Europeans has effectively improved the performance of economies due
to use of skilled human capital and intensive technologies. However, the role of other economic
indicators has not been mentioned that affects the per capita income.
Research methodology
Research methodology is defined as the actions taken to analyze, collect and identify the
data that is effective for the conduction of research. Data needs to be appropriate that must be
collected from authentic sources. The research paper will use the explanatory approach that will
properly explain the existing theories and reviews done on the paper. It will then establish a
quality relation with the existing outcomes and the gaps in literature review. Secondary
qualitative data and secondary quantitative data will be used for the data analysis. Collection of
primary data is not possible and usage of secondary data is effective the study. It will include a
range of economic indicators like inflation, growth rate of GDP, employment rate, production of
goods and services, trade and market conditions with respect to demand and supply.

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Reference List
Easterly, W. and Levine, R., 2016. The European origins of economic development. Journal of
Economic Growth, 21(3), pp.225-257.