Describe ways in which computers and other technology might affect a country's GDP? List 4 ways or more. Elaborate a little on each of your entries.

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pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

Computers and other technology in general would usually tend to increase a country's Gross Domestic Product (GDP).

First, a company might produce computers.  If it did, the computers would be counted as part of its GDP (when they are sold as new computers).

Second, having lots of computers could cause other kinds of businesses to spring up.  You might come to have computer repair people or internet service providers where you did not used to have such things.

Third, you might use the computers to increase productivity in other businesses.  If this happened, GDP would go up because the companies would run more efficiently.

krishna-agrawala's profile pic

krishna-agrawala | College Teacher | (Level 3) Valedictorian

Posted on

Computer technology or any other technology refers to the techniques and processes of performing any work. Technology or to be more specific improved technology has been the greatest  contributor to increase in productivity and growth of all countries and economies ever since dawn of human civilization. Some examples of major developments i technology that led to increase in economic condition of the people and the GDP of individual groups of people are given below.

  • Development of techniques of farming increased the food production.
  • Technology of artificial irrigation including digging of wells further increased the agricultural production.
  • Techniques of hunting with simple tools increased the availability of food through hunting of animals.
  • Spinning and weaving technology created an entirely new class of products such as woolen and cotton clothing, which also added to the GDP
  • Techniques of domesticating animals like cows and sheep increased the production of items like milk, meat, and wool.
  • Technology steam engines increased the production by providing mechanical power for operating machine.
  • Development of all kinds of machines increased production of all kinds of products.
  • Development of transportation technology increased the ability to produce more as well as to buy and sell products to distant markets.

Computer technology has not contributed much in directly producing valuable goods and services, with the exception of entertainment product, for consumption of people. However it has made major indirect contribution to increase the efficiency and effectiveness of all other technologies in use currently. In this way, computer technology is a major contributor to increase in GDP.

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