What causes economic growth, Macroeconomics

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What causes economic growth?

Causes of economic growth:

Into the Solow model, economic growth is based onto the quantity and quality of technology and resources.

Growth is accomplished by:

a. Increasing the quantity of resources accessible to a country by:

• Net investment into the present time period to raise the amount of producer goods obtainable into future years

• An increase into the size of the working age population by

1. Immigration as short term

2. Population growth as long term

b. Enhance the quality of resources by productivity gains as more result for each hour worked resulting through better:

• Education and training to enhance labour skills,

• Complementary factors as an example, introduction of latest technologies or enhanced capital

• Management practices as like introduction of superior production lines processes as like  Just in Time delivery of elements

c. Implementing latest technologies as like the Internet Economic growth can be demonstrated by an outward shift into the production possibility boundary.


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