What are the determinants of economic growth?
work, capital, natural resources and investments are determinants of economic growth. Economic growth is achieved when the amount or quality of such determinants of economic growth increases as a result of population growth, investment, innovation or improved education. The above factors facilitate economic growth by increasing productivity. For example, a large and qualified workforce allows the region to produce multiple goods faster. Increased availability of capital, land or entrepreneurs in a particular market means that to ensure the goods and services that the company wants and needs, it causes salaries to increase and the standard of living increases. The first is the natural growth of the population. Immigration from other regions or countries is the second way. The third is an increased degree of participation in the workforce from eligible members of the population quality of work - the quality of work is improved by formal education or training by a sponsored employer. A high employment level means that companies have the necessary workforcefor the production, services and selling of the goods and services that the population requires. In addition, the level of income for the entire region or country increases if the high proportion of citizens is employed. This means that consumer demand remains stable or increases.
One of the determinants of economic growth that increases productivity is capital. Inventory goods are products, buildings or infrastructure used to produce or provide goods and services required by people. Factory, tools, roads and transport vehicles are investment goods used by businesses to develop and distribute products and services. The availability of determinants capital of economic growth is increased by production or acquisition; The quality of investment goods is improved through technological innovation.
natural resources are determinants of economic growth, which serve as production factors. For example, to power generators in the aimBoth plants or oils can be used water for fuel machines used to transport goods and services to markets. Most natural resources are rare and cannot be supplemented. As a result, the only way to increase the amount of natural resources, a survey that discovers new sources of the source.
Investments are the final determinants of economic growth. The investment is basically a conscious decision to produce investment goods instead of consumer goods in exchange for the future return on investment. Almost all other determinants of economic growth share a symbiotic relationship with investment.
For example, to improve the quality of Pare Work Silynts, government entities and companies invest in education. In order to use natural resources, investment for exploration and drilling must be carried out. Part of the baker, who decided to buy capital goods such as a van, unlike a sports vehicle, it is a form of investment. This is because the delivery truck can be used forDelivery of baked goods to customers while a sports car is a luxurious item. Baker decides to buy a delivery truck in the hope of being able to increase its efficiency by pulling multiple products or materials.