What are the determinants for economic growth?

Question

Growth is a pretty abstract. What I would like to know what determines growth and how one can steer on it.

Answer 1

Economic growth is an increase in the value of goods and services produced in the economy from one period to the next. the formula for GDP= c+i+g+(x-m) or consumption plus investment plus exports minus imports. You can also work this out using opposited such as savings. This is a very simple number and fails to take into account net factor income from the rest of the world and taxation. GNP is a better figure which does.

Simply put, Economic growth can be steered through two main ways, monetary and fiscal policy. Monetary means controlling the amount of money in the economy(interest rates) (lower rates more borrowing, less saving. and visa versa) Fiscal policy means the budget and taxation policy. Tax reduces aggregate demand, govt spending increases it.
Economic Growth can also be steered through balance of payments policy and the encouragement of exports(and discouragement of imports)
There are also many more factors to look into such as productiviy but im tired

Answer 2

Determinants Of Economic Growth

Answer 3

Savings equals Investment (or in an open economy, that is to say as economy that engages in international trade, Savings = Investment + the Trade Gap) Growth can be determined via a production function, where: GDP = Y = f(L,K) (where L is labor and K is capital). Investment should be thought of as "capital formation" in the econ world (for both micro or macro, it does not matter). If workers have more physical capital, they may be more productive. Therefore, the more savings we have, the more investment we have. The more investment we have, the more productive the workers are. The more productive the workers are, the higher GDP per worker is and therefore the higher the standard of living is.

Answer 4

The most important determinant of economic growth are institutions that protect private property (independent judiciary) and improve the quality of human capital (basic health care and education). Read Daron Acemoglu's papers:

http://econ-www.mit.edu/faculty/index.htm?prof_id=acemoglu&type=paper

A good book on the subject is "The Elusive Quest for Growth" by William Easterly:

http://www.amazon.com/exec/obidos/ASIN/0262550423/ref=ase_nikolaichuvakhsc/

Answer 5

increase production, full employment .... this of course will give rise to GDP ... as to how to sustain economic growth, depends on the fiscal and monetary policy employed by the government in steering towards increase production

Answer 6

Sales. If you've got a viable product it will steer itself you simply have to be as good as you product.

Answer 7

please visit wikipedia & get know this huge protocol.

www.wikipedia.org > type at search box