The impact of availability of skilled labour force Manpower is the most important element of the productive forces. The demographic factors are function of socio-economic development and have a great influence on economic growth. In assessing the impact of population dynamics it is important to take into account not only total population and population growth, but also its age structure, field employment, level of education and training, i.e. quality of the labour force. The availability of skilled labour force is the prerequisite of economic development of the country. The quality of labour resources largely contributes to enhancing overall economic performance. The quality of the labor force significantly affects the pace and quality of economic growth. The productive capacity of the workforce, in addition to the psychological and physical qualities of employees, includes a number of parameters that determine its suitability and capacity for high performance. It is the level of general and special education, accumulated and transmitted from generation to generation, work experience and cultural norms of behavior. It is clear that the productive potential of the labor resources of any country is largely determined by socio-economic policy of the state. By increasing the level of competence of the workforce, the government may influence overall economic performance in positive way.
Reduction in immigration barriers Elimination of trade barriers results in significant increase immigration processes. Immigration is considered as multidimensional process influences general components and individual parameters of the host economy. The focus and intensity of this impact varies in each case. Usually, reduction of immigration results in more efficient use of economic resources, both labor and financial. Immigration leads to enhancement the quality of the countrys labour force as the result of increased competition from immigrants. Moreover, immigration leads to increase amount of investments. The positive impact of migration increases especially in case of deficit of competent labour resources and non-attractive vacancy list for national workforce. At the same time, free immigration leads to necessity of giving subsidies and financial support to newly arrived immigrants. Furthermore, the possible unemployment of the national labour forces may pose significant risk on the economy. Also, there is a danger of growing number of criminal attacks by some immigrants that, for instance, occurred in EU as the result of initial reduction of immigration barriers. Nevertheless, in general, the reduction of immigration barriers at least partially has positive impact on the development of the host economy.
Immigration policy should be aimed at obtaining maximum economic benefit from involvement of migrants to the economic performance. This is achieved through attracting the labour force, complementing the qualification structure of the local population. The best examples of reduction barriers strategy include analyzing the local market to define the availability of workers in order to attract foreigners with necessary skills by bilateral agreements between countries.
Limit of access to capital The insufficient capital resources of the country results in decreased economic performance and low level of investments. The lack of access to capital also decreases the overall economic compatibility of the country. Its level of influence on economy is low and the population may suffer from poverty. The absence of access to capital is usually noticed in developing countries, whereas capital surplus is the prerequisite of economic growth and common evidence in the developed countries. If the country has limit of access to capital, it may attract resources from other countries. In this case the dependence is rather negative strategic outcome. At the same time, the country may searches for the ways of increasing efficiency of economic performance. The example of Singapore proves that even possessing limited access to capital, the country may find the way out from the situation. In general the limit access to capital as specific factor leads to increased cooperation among countries that has positive impact on their economies. It should be also noted that capital resources are naturally limited economic factor, but decrease access to these resources have rather negative influence on the economy of the country.
References
Lerner, C. (2012). Factors influencing economic development. New York: Economic Press.
Lim, P. (2010). Microeconomics. London: LNP.
Microeconomics. (n.d.). Retrieved from https://s3.amazonaws.com/books.koondis.com/textbooks/samples/Microeconomics.pdf
