The paper "The Determinants Of Economic Growth" is an amazing example of a Macro & Microeconomics essay. In the present paper, it has been discussed about economic growth in general and then the study will move on to discuss the prevailing theories as to economic growth and in the end, different determinants, which have been declared as determinants of economic growth. Economic growth is the enhancement in terms of the value of products and provisions that are developed and generated by any economy or the financial institution (Barro, 1991).
There are various methods of calculating economic growth. The most significant and renowned measure is the use of the GDP approach. The GDP measurement of economic growth can be done by a number of methods; 1) Expenditure Approach, 2) Income Approach 3) Product Approach. However, the rate of economic growth is a phenomenon, which incorporates percentages. Inflation-adjusted terms are calculated for the assessment of inflation regarding the cost of the developed goods (Barro, 1991). Economic growth and economic growth theory can be defined as an increase or growth of probable outcome, for example, generation of complete service, which is there in case of improved growth in terms of demand and pragmatic output.
In terms of study, development economics sees economic growth differently. The former is primarily the study of how advanced countries can further advance their economies, while the latter is the study of how poor countries can match up with advanced ones. The concept of economic growth is not a newer one, it has got its traces for centuries and different economists have given different determinants to gauge the economic growth of any given country. There are different theories, which have been applied to consider the economic growth of a country. The Harrod-Domar model is a phenomenon widely used in studying, constructing, or explaining the various models and growth theories in development economics.
It most significantly the growth rate of an economy in terms of its level of saving and productivity of resources (capital). The fundamental hypothesis of the model is that there is no natural rationale for an economy to have balanced growth. The model was, build by Sir Roy F.
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