The economic growth is defined as the qualitative improvement and quantitative increase of production factors and national products. The main features of economic growth include the increment of produced product, prosperity, and increase of the national wealth, economic problems, and levels of social solutions in society. Economic growth is most welcome and also brings positive development to each country. Nevertheless, it includes the feasibility of the emergence of negative consequences. The rapid growth of the economy presents a negative impact on the environment. The people’s way of life and industrialization of production operations promote the emergence of leveling the process for people in society. A large amount of production and introduction of new equipment will reduce technical problems and also reduce material resources. Economic growth is relevant to the public, as in many countries it creates mixed and extensive preconditions and numerous problems for economic growth.
Economic growth is necessary for the countries, where basic growth is liberating people from poverty. In regard to the developed countries, there is a widespread conception of the economy without growth. The approach makes it feasible to present a balanced economy that does not cause changes in the degradation of the environment. Economic development includes preservation of quantitative and qualitative improvement, improving working conditions and economic balance at the satisfaction level. Determining economic development characteristics is used to forecast and manage economic growth. The paper aims to explore factors, which determine the fact of economic growth. They are fundamentally inclusive of the elements and driving forces making an impact on the dynamics of the country’s economic development. The problem statement aims to analyze and systemize the weight of each of them.
There are hindrances to explaining the causes and nature of economic progress, such as rapid acceleration is one of the fundamental historical factors for economic development. In economic progress, there is a number of differences for various world economies. There are changes that have been addressed for many economies of the world. The main theory of both fields is Ricardian theory, which measures progress in regard to the output produced by a given economy. The economy is shown as a machine that brings lots of transformation to the inputs, such as natural resources, labor, and capital, where the quantity of technology and input of the machine act as a determinant of the amount of output.
The increased amount of information is a result of technology and input. The large output is largely determined by the output and level of technology. Low input in some economies means that there is no enough technology. Economic development advocates for diverse policies in the countries that are less developed and lack sufficient potential. However, it is not a lack of technology but a lack of opportunities for achieving the necessary potential is the obstacle to the development and failure to exploit technology and resources available. Attention has shifted to the degree of the economy’s development.
The well-being of people, the achievement of a sustainable future, and economic growth are correlated thus has a long intellectual history. The prerequisite to present the generation, which rightfully has its own needs, is our generation’s obligations in order to use what is required for the descendants in the future not to be deprived of their needs. Sustainable development is the process that presents requirements without compromising the opportunity of future generations to meet their needs.
The legislation is introduced to correct the failures, such as asymmetric information, economies of scale, and externalities, which have a positive impact on economic growth as the economic efficiency is enhanced. Reducing market failure may have a positive impact on economic growth though it is not always the case. There is the greater efficiency that is not necessarily captured by high gross domestic products, such as in case of pricing externalities. Those positive impacts on the economic progress may, in essence, be higher when compared to high compliance costs, unintended consequences, or market distortions. The overall impact of regulations is aimed at removing failures in the market.
The legislation can affect the rate of economic growth and economic activity. It is thus imperative to present a distinction between two concepts, where the change in the level of economic activity can give a significant reduction in economic activity. Nevertheless, the change in the economic activity from the legislation is measured by the costs of compliance, which can affect the permanent impact of growth regulations. The opportunity in business focuses on the compliance costs since they provide an indication of the number of resources that are diverted from productive to nonproductive use as a result of legislation. Nevertheless, such measures include only one-level effect rather than the sustained regulation impact on the rate of economic growth.
The population impacted
Economic growth has an impact on the community. With the increase in economic growth, the population may increase as a result of high standards of living. There are two basic ideas related to the issues. Some of the researchers say that population has a negative impact on the economic growth and development, while others, in essence, have a positive influence on it. There is a long-run relationship between population growth and development in world economies. The findings indicate that there is an existence of the long-run equilibrium connection between economic development and growth. In essence, this means that the population has a positive impact on the economic performance of the country. The findings support the population-driven approaches stating that growth of population promotes economic development.
The state of knowledge does not guarantee the clear-cut organization as to the influence of population on the development and growth of the economy. Some of the theoretical analyses show that population creates a lot of pressure on the limited resources in that a population that is concentrated on a small area means that the resources will be overexploited. The population impacted is dependent on whether the population is high enough or low. Thus, economic growth affects all the areas of the economy and population.
The outcome is that economic growth shows an increase in the gross domestic products. Economic growth shows that an increase in the national income and output has affected an increase in the aggregate demand and supply. Potential growth can increase as a result of the increased capital, such as investment in new factories or infrastructure and an increase in the working population, such as higher birth rate and immigration. Improvement in technology leads to the improved productivity of labor and capital, such as the internet and micro-computers contributing to economic growth.
Economic growth is the increase in consumption and production of services and goods. It involves the increase in population and per capita consumption, as indicated by the growth of GDP. It refers to the economy that is getting bigger and not the one that is getting better. The economy is the subset of the ecosystem containing it. The fact is overlooked in the economic and business context, where the ecosystem is seen as a subset of the economy. The production of services and goods entails the conversion of natural resources.
The circular flow of goods and services presents the economy. It also involves converting natural resources into finished goods. Thus, the conflicting ideas existing between converting resources and economic growth act as a prerequisite for determining economic growth. Economic growth needs more resources, wherewith a faster growth in the economy, natural resources are depleted. Finally, for the proper functioning of economy, it needs an environment to recycle and absorb pollutants.
Future solutions and projections
For the economy to grow, there are many resources that are needed. In essence, with the growth, there is a depletion of economy, and thus there must be a way of solving the issues that arise. The economy must have a way of recycling the pollutants. National security is a function of economic sustainability and economic strife of nation in the revolution.
Policies must be in existence to support economic growth that represents the alternative preferred. There has been an increased growth in the government’s prerequisite to meet the increased demand for public services. The prospects of economic growth can be contributed to by the state in order to meet the increased demands for services.
The prospects can also be raised while shifting the labor force participation and productivity. This will improve the future prospects of economic growth. The fiscal gap impact is less precise when economic growth increases. The future spread of risks managed through consideration of alternative approaches can handle the better implicit transfer of intergeneration. The projections of economic growth show that rates of unemployment and inflation should be handled. Economists in the private and public sector are tasked with the prediction of the future on the basis of closely checked indicators, risks, and the overall impression.