Factors of economic growth

In the economy of any enterprise is never downtime. Moreover, it is in his power constantly influences the dynamic changes, however, they can be both positive and negative. To always keep the situation under control, it is necessary to predict and adapt to all the changes in the economic environment.

Economic growth is the main objective not only the company but also the state. The higher it is, the greater will be the capacity of the national economy, and consequently, the level of people's lives. Economic growth has a positive impact on the development of the business sector, as it opens new opportunities for the development of market relations. From the condition of the economy, depends on the cost of resources and the solvency need. The decline in economic development entails a reduction of production volumes the enterprise and reducing the number of workers.

As economic growth depends on several factors. Under the factors refers to processes and phenomena which determine how much to increase real output. They also show opportunities to improve the quality and efficiency of growth. Factors of economic growth, depending on the degree of impact are divided into primary and secondary. The main factors of economic growth determine the physical ability of economic growth. Secondary factors also contribute to the realization of this ability in reality.

Production Development can occur, extensive or intensive way. Intensive economic growth is that the increase is due to the quality upgrading of production, in particular the transition to newer tools and objects of labor, and the introduction of modern, more efficient technologies. It should be noted that in its pure form, this type of production development does not exist. This files most often is intense use such a thing as “predominantly extensive”.

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Extensive growth is a slow build-up of production, characterized by technical stagnation, limitation of resources and preservation of the structure of production. Extensive factors of economic growth almost completely exhausted itself, due to which there is a need to redirect resources to find and implement those factors and reserves, which will increase the efficiency and intensification of production activities.

The Factors of economic growth rather diverse, but all of them are the most important and necessary for the successful development of production: the use of opportunities of scientific and technological progress, the level of labor organization and production management, social conditions and guarantees, environmental conditions, external and internal economic relations. However, not always these factors to be effective. For example, in countries where natural conditions are poor, economic growth is high enough through the use of modern achievements of science. Some of the production, having all the prerequisites for development, can't do only by the fact that you do not have support from other of their kind. Often all rests in the lack of initial capital, which, in fact, is one of the main engines of economic growth.

The Factors of economic growth, despite the importance of his results are in close interaction with each other. In principle, this is a successful development of production. Violation of this integrity leads to the inhibition of momentum and, as a consequence, a Contracting economy and loss of income. It is therefore important to monitor the whole production process, not forgetting to timely solve all problems.