What Are the Different Factors of Economic Growth?

Economic growth factor analysis theory is also called economic growth factor analysis theory: a theory that seeks faster growth through quantitative analysis and country comparison of factors affecting economic growth and their role in economic growth.

Economic growth factor analysis theory

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The theory of factor analysis of economic growth is also called the theory of factor analysis of economic growth: a method for analyzing the factors affecting economic growth and its role in economic growth.

Dennison divides the factors that affect economic growth into 7 categories: the number of employed persons and their age-gender composition; the number of working hours, including those who work part-time; the education period of employees; the size of the capital (including land) stock; The improvement of resource allocation, that is, the reduction of the proportion of inefficient use of labor; the extent to which economies of scale are realized; the advancement of knowledge (including technology and management knowledge) and its application in production. Among them, the first three are the amount of labor input, the fourth is the amount of capital input, and the last three are the output rate of unit input, that is, productivity. According to US statistics from 1929-1933, Dennison made the following estimates of the role of the above factors in economic growth: If the total growth rate of national income during this period was 100%, 54.4% of the total growth rate was determined by The amount of input provided. Among them, the total growth rate provided by labor input is 15%), the total growth rate provided by 45.6% of capital input is 15%), and 45.6% is provided by factor productivity. Dennison also compared the contribution of various growth factors to economic growth in countries such as the United States and Western Europe. For example, during the period 1950-1962, 40% of the total growth rate in Western Europe was provided for input and 60% was provided for factor productivity; the United States, on the contrary, provided 60% of the total growth for input. 40% is provided by factor productivity. This shows that the productivity of Western European countries increased faster than the United States after the war. From the perspective of labor input, the labor force of Western European countries has made greater contributions to economic growth; while American workers have a higher level of education, and their education levels have made greater contributions to economic growth. Denison's analysis of economic growth factors is of great inspiration and reference for studying the trend of economic growth and formulating scientific economic growth policies.