Factors Determining Economic Growth Rate

Why has the economic growth rate been changing in various countries for a long time? There have been a number of empirical studies trying to solve this problem by identifying potential factors that determine this growth rate. Common to most of these empirical studies is that their analysis contains only a few explanatory variables, but the selected variables are different. This survey includes some of the more common variables found in previous papers such as investment ratio, government expenditure, inflation, openness, average life expectancy, birthrate, etc. However, foreign direct investment, educational expenditure, and medical Expenditure is different.

Population growth depends on the birth rate - the number of children per adult and the mortality rate. On the other hand, the birthrate and mortality rate are determined by various factors. Economic growth and economic development often lead to a decrease in population growth, but strict rules and other factors such as family planning availability, social expectations, government intervention, etc. can not play an important role . Economic development Countries in the early stages of economic development tend to have higher population growth rates. In an agricultural society, children are seen as a potential source of income. From a very young age, they can help with housework and harvest. Furthermore, in a society without a national pension, parents often wish to assure more children for later years. Children are expected to look after older parents

Economic Growth Population An important factor in judging the impact of aging is the future economic growth rate. I am worried that Western countries have entered a long period of stagnation - growth rate has declined. The decline of economic growth will increase the pressure on public finance caused by the aging of the population. Strong economic growth, taxes raised, and easier funding for pension contracts. In recent years, however, wages are stagnating, and the actual income of young people is decreasing. This emphasizes redistribution of income from youth to retirees. The problem is that the aging population is one of the reasons for long-term stagnation in countries like Japan.