What factors affect GNP growth?

The country's ability to increase its gross national product (HNP) and its economic growth may increase if the quality of human capital is improved by education and health care. The country can focus on improving the quality of its workforce by increasing opportunities for education and vocational education and retraining those who need to work in new industries. Improving physical infrastructure and the level of technology used also contribute to growth. In addition, the country's institutional infrastructure in areas such as rights, banking and government institutions is essential for GNP growth. Social capital - in terms of houses, schools and hospitals - is also necessary for the provision of hygienic, health and educational services that are necessary for improvements in human capital. An enlightened immigration policy that attracts highly trained staff from abroad can increase the quality of the country's labor force. Where more qualified people can be brought to the workforce, either by politicians toE Decreasing unemployment, immigration or population growth combined with adequate education can be supported by GNP growth.

Improvement in technology used in the country is the main factor in GNP growth, as such advances can increase productivity, ensuring that more power can be achieved per hour of work. Technologies in some areas, such as extraction or oil production, can be absolutely essential to the country's economy. Progress in technology can be achieved through research and development or transmission of technologies from abroad. Relevant technologies can be purchased from foreign companies or licensed in the case of intangible assets. For foreign foreign investments in the form of common enterprises or partnership, they can create opportunities for the transfer of technologies from foreign companies.

Banking and financial systems must operate efficiency because they are before they areLature in providing risk capital or loans to businesses. A legal system must be established to allow people and businesses to conclude and promote contracts and protect and demonstrate ownership of assets. In addition, the country must ensure political stability to ensure that direct foreign investments continue to come to the country and the population can perform their business operations without unnecessary government intervention. Finally, international relations must be satisfactory and the countries must participate in international contracts and organizations. The protection of bilateral investments and double taxation contracts should be concluded with the main business partners to ensure that business risks for investors in the country are minimal.