Factors That Contribute To Economic Growth

Introduction In order for any country to survive compared with other developed countries, we must be able to develop and maintain healthy and prosperous economies. The purpose of this paper is to detail the fields of economic growth and economic growth. Without such reduction, economic growth of the country is indispensable to reduce poverty, poverty continues to increase, so economic growth is inevitable. Through economic growth, it also helps to reduce unemployment and reduce the government's fiscal deficit.

Understanding of current economic growth is mainly based on the neoclassical growth model developed by Robert Solow (1956). In the Solow model, capital accumulation is the main factor driving economic growth. The increase in productivity measured by the increase in production per worker is caused by an increase in capital per capita or accumulation of capital (Fagerberg 1994). The deepening of capital will continue until the economy stabilizes, that is, the net investment, labor growth rate and capital labor ratio do not change. The economy is even below steady state and should be faster (see Jones 1998). In steady state, per capita income growth is all due to extrinsic technical change. We assume that the speed of the technical process is constant and not affected by economic incentives

Industrial development and economic growth: Poverty reduction and impact on income disparity

Economic system theory of classical and neoclassical emphasizes that material resources and free trade are the main factors promoting economic growth, but the main purpose of this new growth theory is human capital and It is a new growth technology. Scholars such as Romer (1990) emphasize resource shortage as a major obstacle to growth, although the classical and neoclassical theory highlights new growth theory as new ideas, We are optimistic about continuity and expansion. attitude. Make sure to clearly distinguish knowledge (a form of capital) from material capital. New growth theory believes that technology is endogenous; it is the core part of the economic system