Economic growth is a complex process with multiple determinants from "summary" of Theory of Economic Growth by W. Arthur Lewis
The process of economic growth is not a simple one. It involves a multitude of factors that interact with each other in complex ways. The determinants of economic growth are not limited to just one or two variables, but rather encompass a wide range of influences. These determinants can include factors such as investment, technological progress, human capital, political stability, and institutional quality. Each of these factors plays a crucial role in shaping the trajectory of an economy's growth over time. For example, investment is essential for economic growth as it provides the necessary funds for businesses to expand and create new jobs. Technological progress is also crucial, as it allows for increases in productivity and efficiency, leading to higher levels of output. Human capital, in the form of education and training, is another important determinant of economic growth. A skilled workforce is essential for innovation and adaptation to changing market conditions. Political stability and institutional quality are also critical factors that can either promote or hinder economic growth. A stable political environment fosters investor confidence and encourages long-term planning, while strong institutions are essential for enforcing property rights and contracts.- Economic growth is a multifaceted process that is influenced by a wide range of determinants. Understanding these various factors and how they interact with each other is crucial for policymakers and economists seeking to promote sustainable and inclusive growth. By taking a holistic approach to economic development, it is possible to create conditions that support long-term prosperity and well-being for all members of society.
