Causes Of Economic Growth

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Eager buyers crowding checkout lanes, cranes erecting buildings or help-wanted signs filling store windows-all are signs of economic growth, which largely affects the material well-being of a country. When the economy expands, jobs are created and goods and services to meet people’s needs increase. For these reasons, economists are interested in the causes of growth and what countries can do to maintain or enhance it.
Throughout history, some economies have expanded faster than others. Some differences can be traced to such inherent factors as climate and geography. At times people living near navigation routes or in temperature climates have fared better than people living far away from coastlines or in frigid climates. Some analysts
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Kindleberger observed that major part of the productivity in any developed country was due to the presence of positive technological change. Technological change has many facets including creation of new products, improvising old production processes and quality and efficiency gains from existing products. Cars, lights, computers, software can be or in fact are the products which during positive technological change are improvised in the sense that their cost remains constant or decreases and it shows the Economy is improving. Every form of efficiency in the higher production of commodities results in the higher and better production especially in the specialized goods. These goods are then provides a best source of exports productivity showing huge economic…show more content…
Literacy enhances the working capabilities of people by providing them with skill development. It creates a state of competition among firms, industries and different sectors of production which helps in the strong competition and economic development. Increasing rate of literacy helps to maintain and control Population. Hence qualitative population is found with increased standard of living and more access to the basic needs. Increases more skilled labor that bulid a source of higher production and low rate of returns. Also helps in the allocation of resources in the best
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