The term economic growth is associated with economic growth and progress.
Economic growth is defined as the growth of the economy’s ability to produce goods and services over a period of time.
In economics, economic growth refers to the long-term expansion in the productivity of the economy to satisfy the wishes of individuals in society. A country’s sustainable economic growth model has a positive impact on the national income and employment level, resulting in a higher standard of living.
In addition, it plays an important role in stimulating government finances by increasing tax revenues. This helps the government to generate additional income for the further development of an economy. The gross national product (GNP) of a country is equal to the GNP of the previous year. The economic growth of a country can be measured by comparing it with. A country’s economic growth is possible if the strengths and weaknesses of the economy are properly analyzed.
Economic growth means:
Economic growth can be defined as a positive change in the level of goods and services a country produces over a period of time. An important characteristic of economic growth is that it is never the same or the same in all sectors of the economy. For example, in a given year, the telecommunication sector of a country marked a significant contribution to economic growth, while the mining sector did not perform well in terms of the country’s economic growth.
Following are some of the important factors that affect the economic growth of a country:
(a) Human Resource:
It represents one of the most important determinants of a country’s economic growth. The quality and quantity of available human resources can directly affect the growth of an economy.
The quality of human resources depends on its skills, creativity, training, and education. If a country’s human resources are well-trained and trained, the output will be of high quality.
(b) Natural Resources:
It can greatly affect the economic growth of a country. Natural resources include the resources produced by nature on land or underground. Resources on land include vegetation, aquaculture and terrain.
Resources beneath land or underground resources include oil, natural gas, metals, and non-metallic minerals. The natural resources of a country depend on climate and environmental conditions. Countries with a lot of natural resources experience better growth than countries with smaller natural resources.
(c) Capital Formation:
Includes land, building, machinery, power, transport and communication media. The production of all these man-made goods is called capital formation. Capital formation increases the availability of capital for a worker, which further increases the capital / labor ratio. This, in turn, increases the productivity of labor, resulting in increased productivity and growth of the economy.
(d) Technological Development:
One of the most important factors affecting the growth of the economy. Technology involves the application of scientific methods and production techniques. In other words, technology can be defined as the nature and type of technical tools used by a certain amount of labor.
Technology development helps increase productivity with limited resources. Countries working in the field of technology development are growing faster compared to countries with less focus on technology development. Choosing the right technology has a role to play in the growth of the economy. On the contrary, an inappropriate technology- resulting in higher production costs.