Sources Of Economic Growth Essay

Economic growth refers to the increase in the amount of the goods and services produced by an economy over time (Jones, 1996); an increase in the total output of a country. Economist measure growth by real GDP and per capita real GDP to compare how economies grow over time. A rise in real GDP signals growth in the economy and tends to translate as an increase in productivity. If the economy’s growth is an increase in the total output of a country then the total input plays a key role (total output = total input)

In this study I will briefly describe five sources/ determinants of growth and explain which one I believe is most important when assessing economic growth.

Economists have identified five important sources of growth; Productive resources (land, labour, capital and entrepreneurship) and Technological advances.

Economic growth depends on the size and quality of the labour force. The size of the labour force is the number of people of working age, who are either employed or actively looking for work. The quality of the labour force depends on education and

Land can be combined with labour and capital to produce goods and services. England in the late 1700s grew because it had iron and coal. Abundant natural resources can contribute to economic growth, but natural resources alone do not create growth. Several developing countries who are relatively rich in natural resources have not able to exploit these resources to produce goods or service.

Entrepreneurship is the ability to get things done. That ability involves creativity vision and a talent for translating that vision into a reality. These are the people who have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable. When a country’s population demonstrates entrepreneurship, it can overcome deficiencies in other ingredients that contribute to