With the assistance of economic models and statistical data, identify and explain the fundamental sources of the steady increase in GDP per capita in most developed and developing countries around the world since the Second World War.

Some sources of steady increase in GDP per capita are: Depopulation, Globalization, Export-led growth, and financial repression.

Step-by-step explanation

According to the statistical data available with the World Bank, we can see the growth in GDP per capita for different countries (developed and developing). The data for currenct GDP per capita for different countries can be access through the given link:

https://bit.ly/2ZQzpeP

The steady growth in the GDP per capita in most developed and developing countries depends on its sources, which includes GDP components. The GDP components are: consumption spending, investment spending, government spending, and net exports. There are many factors affecting these components and a change in any of these components will lead to the change in GDP, which will affect the GDP per capita. The another factor causing the change in GDP per capita is the change in population of the country, as GDP per capita = GDP/population.

The fundamental sources of growth in GDP per capita after the WWII are:

1) Depopulation from war: Depopulation after the war has increased the resources per person and environment degradation. It has resulted in high GDP per capita. It is simply because GDP per capita is per person share of GDP and with the less number of people the GDP will be shared in more numbers. The another economic explanation of low population growth as compared to GDP growth hides in the theory of demographic transition. This explains that more population leads to lower economic growth as more population requires more food to live with the limited resources and this degrade the food quality.

2) Globalization: The more open economies in terms of exchange of goods and services, capital, and factor services resulted in the large volume of net exports for all open economies. An increase in exports leads to the an increase in GDP. The countries focusing on the export-led growth has experienced a steady increase their GDP per capita. This is supported by the economic theory of Merchant 's export-led growth.

3) Financial repression: It reflects the low interest rate in the economy to stimulate the economy , which has increased the borrowings and decreased the savings. This has resulted in an increase in the aggregate demand and spending in the economy.