What is the relationship between government and economic growth?

Government and economic growth are linked because the government can stimulate growth by creating an economic, legal and regulatory environment in which they can prosper. The government can also support growth through its policy of education and training and increase opportunities for workers to improve their skills. Direct government expenditure on infrastructure projects such as road and rail connections, maritime ports and airports can ensure that domestic and foreign trade works effectively. Technology provides major support to economic growth and the government can monitor policies that are favorable to research and development or transmission of technology. The connection between government and economic growth can also be observed in the creation of a government of better conditions for international trade by reducing tariffs, taxes and duties and conclusion of free trade agreements with potential business partners.

economistsCalus growth is one of the main objectives of government policy that seeks to achieve stability in inflation of currency, interest rate and exchange rates. In particular, the government can help business by reducing laws and regulations to the minimum necessary. The government can also help economic growth through its policy of education and training and ensure that the workforce is able to acquire and maintain relevant skills. Government expenditures can also ensure that university institutions associate with trade through knowledge sharing to ensure that clean and applied research can lead to the development of innovative products by commercial companies. The government can stimulate the network by creating an environment for clusters of business and academic bodies with high technology, which leads to sharing knowledge and development of new technologies.

Government and economic growth are related if the government improves infrastructure to allow the merchant to give your goods at lower costs and with higher efficiency. Well scheduled and maintainedThe road and rail connections between cities and maritime ports and airports can enable businesses to flourish because they gain easier access to domestic and foreign markets. Curved naval ports can be complemented by access to inland dry ports with direct road and rail connections to sea and air terminals and other ties to consumer markets. In some cases, the economy of remote regions can be transformed by opening traffic connections over bridges and tunnels to overcome natural barriers. The movement of workers from home to the workplace can be facilitated by the development of metropolitan and underground rail networks and highway connections.

favorable tax and regulatory environment for business can reduce temptations for some companies to migrate to jurisdictions with low taxes and minimal regulation. The relationship between government and economic growth is observed where foreign trade is supported through a lobby tariff barrier for import and negotiation lEpší approach to foreign markets for exports. The Government may negotiate free trade agreements or free trade membership and may conclude investment protection contracts and eliminate double taxation for companies operating in foreign jurisdictions.