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Factors influencing economic growth of countries
Since long, it has been witnessed that there are various questions that have been the same for long and one of the questions that still confuses the world is, why some countries grow faster economically than the other”. Economic growth is the overall improvement of the quality of life and almost all the areas (healthcare, environment, human capital, wages people, technology, infrastructure, etc.) are included. The difference in economic growth rate is mainly because of the availability of the resources, but in some cases, there are countries that are enriched with natural resources but they don’t have the technology and expertise to use those natural resources for enhancing their economic growth rate (Saberi & Hamdan, pp.200-216). Economic expansion that took place, is because of the explosion of the knowledge about what a country has and how it could use it for its growth. Different countries have different capabilities and positive factors that make them stand out in the list of countries that grows economically. Population and the working conditions also determine the economic growth and as not, all the countries have the same resources, conditions, people, strategies, knowledge, and technology, so there comes a difference in their rate of growth.
Keeping an eye on the global economy has always been my area of interest and this interest motivated me for choosing this topic. I always wanted to think of debatable questions that appeal as well as confuse others, so I choose this topic "why some countries grow faster than others? I am fond of studying the role of government, how it influences the progress of a country so the chosen topic appeals to me the most as it motived me for learning more about things and bodies I am interested in.
The economic growth of any country is influenced by a few factors (resources, people, and conditions) and most important out of these factors is the government. The government is the main body that makes the policies that either go in favor of or against the economic growth of a country. It is the main authoritative body that guards the political stability so that the political crisis could not curb the economic growth of the country (McClelland, pp. 53-69). The government could help in enhancing the economic growth of a country as it plays a role as the major investor for the industries. The government also plays an important role in making laws and policies that directly influence economic growth.
Efficient utilization of resources is also responsible for the government. Countries have different types of economic and natural resources that they use for enhancing economic growth. It is the government that enables a country for achieving the path of economic development by engaging and perusing foreign countries for investment as more investment means enhanced economic growth (Guo). One of the main roles that the government plays in enhancing economic growth is the efficient utilization of domestic resources.
The government maintains and law and order through the effective administration system. Impressive law and order conditions grab the attention of the global or foreign investor and this foreign investment is the driving force of the economic growth of a country. It is the government that runs all the important institutes and departments, such as defense, police and court help in maintaining peace, law, and order. Peace and a positive environment help in the smooth functioning of the companies and organizations. Government plays a key role in enhancing economic growth by providing favorable conditions for both the industrial and agricultural sectors. Sound socio-economic infrastructure is another thing, controlled by the government and it helps in enhancing the economic growth of the countries.
Another major factor that needs to be focused on is, different governments have a different way of working as not all countries have the same economic conditions and resources. Government helps a country paving the way so that economic growth could be accelerated and it spots the fields or areas that would appeal to the global markets and investors that would make a huge difference when it is about the economic growth rate of a country. Government helps in expanding the businesses and projects that would help in accelerating the economic growth of the country, as it is responsible for making the policies, laws and equally involved in their execution of the plan made that would assure an increase in economic growth.
Taking a look at the above-mentioned details, it could be said that different countries have different conditions, circumstances, resources and policies and all these factors influence of economic growth of the country. All the factors are greatly influenced by the government as it is the controlling body of any country. It is true that not all the countries have same resources but it is the government that makes a difference in the economic growth rate as it is the main controller and the influencer that decides which way things would lead. So as a whole, it could be promulgated that there are different factors that determine the economic growth of a country but the government plays a key role in enhancing its economic growth.
Guo, Ping, et al. "Do government expenditure and financial development impede environmental degradation in Venezuela?." PloS one 14.1 (2019): e0210255.
McClelland, David C. "The achievement motive in economic growth." The Gap Between Rich And Poor. Routledge, 2019. 53-69.
Saberi, Maria, and Allam Hamdan. "The moderating role of governmental support in the relationship between entrepreneurship and economic growth: A study on the GCC countries." Journal of Entrepreneurship in Emerging Economies 11.2 (2019): 200-216.
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