Determinants of Economic Growth
Economics (Year 11) - Economic Growth
The determinants of economic growth are formed by human, capital and natural resources. These factors can impact the level of GDP and output that a nation achieves.
By increasing the size of the labour force, more goods can be produced and sold, in turn, increasing GDP. A larger factor is population growth or migration, as more workers can supply more jobs. Furthermore, the education levels, training, knowledge and skills of workers can increase the quality and productivity of the labour force.
By increasing the amount of equipment, then output can increase. For public and private investment, by increasing the amount of infrastructure , schools, hospitals, buildings, equipment or machinery the level of economic output and the capacity to invest further will rise.
The natural goods that a country supplies and the quantity of them, such as minerals, deposits or agricultures, all contribute to the level of economic growth and the nation’s trade. For instance, in the 17th century Australia was an agricultural nation, however, due to iron ore deposits and gold rushes it is now a leading exporter of minerals.