Economic growth and its types

Economic growth is one of the most important characteristics of any state, the goal that modern societies are striving for.

Economic growth refers to the increase (quantitative and qualitative) of production per capita. Some dictionaries view this concept as a tendency to increase output per individual soul.

Economic growth and its types are a progressive concept, however, this term has positive and negative characteristics.

The positive sides are:

• Growth of the society's security due to a steady increase in production.

• Against this background, the country's economic image is growing.

• Increase in the number of employed people and, as a consequence, increase in the material security of the employed part of the population.

• Application of new technologies, positive changes in production technology, qualitative changes in working conditions.

Negative sides:

• Deterioration of the ecological situation, negative impact on the habitat, depletion of resources.

• Overcrowding, especially of large cities with a developed production infrastructure.

• Growth of labor intensity.

• Necessity of constant improvement of professional skill of the staff.

Economic growth and its types - the concept is ambiguous. Officially, there is an intensive and extensive economic growth. The extensive type is characterized by an increase in the quantitative power of all factors of production. This includes the construction of new plants, the recruitment of more workers, the increase in the number of machines, cars and other equipment necessary for production.

Intensive economic growth is the rational use of existing factors of production. Factors of production in this case include the achievements of science, the development of workers' skills, the correct redistribution of resources and savings.

However, economic growth and its types in reality represent a more complex system.

Economists identify:

• Uniform economic growth. It is observed in developed, leading countries: the USA, many European countries.

• "Miracles of growth", which today surprise the whole world Japan, China, some other countries in Asia.

• "The tragedy of growth" is a phenomenon of a decline not only in economic growth, but also a steady decrease in the standard of living, which threatens the death of members of such a society.

• Lack of growth. To such types it is possible to carry, for example, Zimbabwe.

The nature of the development of the state and society, economic growth and its types determine very different factors. Usually they are called sources or factors that cause economic growth. These factors are common for all countries. Some sources of economic growth are considered by scientists to be decisive.

• The content of natural resources. Naturally, the economy of a country that has water, mineral, land or any other resources develops faster than the economy of countries that do not have natural resources.

• Characteristics of labor resources: their number, skill level, employment, rational use.

• The height of scientific and technological development, the level of implementation of these discoveries in production.

• Availability of fixed capital. Without constant investment, capital renewal, etc. The growth of the economy stops.

• Rational structure of the economy, its ability to quickly change in response to changing needs or economic conditions.

• The type of economic system. Historically, it has been proven that the market economy is more productive than others.

• Social and political factors supporting business development, eliminating corruption, nurturing a healthy attitude towards competition.

Speaking about the notion of "economic growth and its types," it should be remembered that its backward side in any country is economic instability, which can manifest itself in the growth of inflation, economic upturns or recessions, and imperfect taxation.