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What are the main factors that determine the growth of an economy? 


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The main factors that determine the growth of an economy include domestic savings, foreign direct investment, government consumption expenditure, trade, urban population growth rate, inflation rate, unemployment rate, trade openness, external debts, stock market capitalization, and governance indicators . These factors have been found to have both positive and negative effects on economic growth. For example, domestic savings and government consumption expenditure have been shown to propel the economy, while external debt and unemployment rate have a negative influence on economic growth. Additionally, trade, urban population growth rate, and inflation rate have been found to lead to an increase in economic growth, while trade openness and stock market capitalization also play a role in determining economic growth. Overall, these factors interact in complex ways to shape the growth of an economy.

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The paper discusses the factors that affect economic growth, including the "catch-up effect" for poorer states, the concept of "institutional sclerosis", and the importance of a country's initial economic development level.
The main factors that determine the growth of an economy, according to the paper, are trade openness, inflation, external debts, stock market capitalization, and governance indicators.
Open accessJournal ArticleDOI
Kun Zhang, Yuanyuan Wang, Shipeng Ren 
01 Dec 2020
1 Citations
The main factors that determine the growth of an economy, according to the paper, are increasing trade, urban population growth rate, inflation rate, and unemployment rate.
The main factors that determine the growth of an economy, according to the paper, are Gross Domestic Savings (GDS) and Government External Debt (ED).

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