Paper Title
Issues & Effects on Economic Growth: Microeconomic and Macroeconomic Perspectives
Abstract
Economists have focused on the development of theory, with a heavy center on internal logical consistency. There
has also been much attempt devoted to the development of appropriate empirical techniques, in particular econometrics. Less
concentration has been given to the requirements for applying the latter, econometrics, to analyze relationships particular in
the former, theory These aspects of functional relationships are then discussed. They are the use of control variables, the
nature of causality, and the need for structural permanence. The overall implications are that many problems are assumed
away in experimental economic analysis. These can fundamentally disfigure the findings and hence provide confusing
information for policy makers in low-income countries. Policy makers have traditionally considered the macroeconomic
relations and the variables that can affect the economic objectives that they follow, such as prices, employment, balance of
payments, and economic growth. Recently, microeconomic behavior has also been considered. To complete the analysis, it is
necessary to include those variables that define the firm's development and activities, and cash flow could be this kind of
variable to be included in the analysis.