Discover published sets by community

The quantity of labor available and the quality in terms of skills and productivity of the labor force are crucial factors. When labor quantity increases along with quality through education and training, productivity can rise, leading to economic growth and potentially lower unemployment rates.

An economy that is diversified across various sectors is less susceptible to sector-specific shocks and can experience more stable growth. Diversification can also help exploit comparative advantages across a broader range of sectors, stimulating growth.

FDI is an investment made by a firm or individual in one country into business interests located in another country. It can bring capital, technology, and management knowledge, which may lead to increased productivity and economic growth.

Social capital is the networks of relationships among people in a society that enable it to function effectively. High social capital can lead to trust and cooperation, which underpin economic transactions and can lead to smoother functioning of the economy and thus growth.

Human resource development involves improving the skills, knowledge, and abilities of the workforce through education and training. This investment in human capital can increase productivity and contribute to higher economic growth by creating a more competent and efficient workforce.

Physical capital comprises the man-made objects (buildings, machinery, and equipment) that are used in production. Increased physical capital per worker generally leads to higher productivity, as it can enhance the efficiency and volume of output. This factor contributes to economic growth and potentially leads to higher GDP per capita.

Economies of scale refer to the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale. This leads to lower production costs and the potential for lower prices for consumers and higher competitiveness in international markets.

Exchange rates affect the price of a country’s goods and services internationally. Competitive exchange rates can make a country's exports more attractive on the world market, potentially increasing sales abroad, leading to economic growth.

Human capital refers to the skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country. It increases productivity as a better-educated workforce can lead to more efficient and higher-quality production. The effect on the economy includes higher GDP growth rates and improved standards of living.

Technological advancements are improvements and innovations in technology that can boost productivity by enabling more efficient production processes or entirely new methods of production. This expansion in productive capacity can spur significant economic growth and improve living standards.

Capital formation is the process of building up the stock of real assets in an economy during a period. It involves saving and investing a part of the GDP in capital goods. The effect includes potential increases in production capacity and therefore, long-term economic growth.

Entrepreneurship is the ability to start new businesses and to bring together resources needed for production. It can lead to job creation, innovation, and competition. Entrepreneurs can significantly contribute to economic growth by introducing new products and services.

Consumer confidence reflects the degree of optimism that consumers have regarding the overall state of the economy and their personal financial situations. High consumer confidence can lead to increased consumption, driving demand and contributing to economic growth.

The balance of payments is a record of all economic transactions made between residents of a country and the rest of the world. A favorable balance of payments can indicate strong exports and a healthy economy, contributing to economic growth.

The regulatory environment includes laws, regulations, and governmental policies that shape the business climate. A supportive regulatory framework can foster competition, protect property rights, and provide incentives for investment, leading to enhanced productivity and growth.

International trade expands markets and allows for the specialization of nations in products and services in which they hold comparative advantages. It can lead to a more efficient global allocation of resources, increased competition, innovation, and economic growth.

Demographic changes and population growth affect the size of the labor force and the market for goods and services. A growing population can increase economic growth through a larger workforce and higher demand but may pose challenges if not coupled with job creation and infrastructure development.

The availability of natural resources such as land, minerals, and energy can impact economic growth. Economies with abundant resources can exploit them to promote production and exports, while scarcity might limit growth. The effect on the economy includes influencing trade balances and sectoral employment.

The availability and cost of energy can significantly influence economic growth. Affordable, reliable energy is fundamental to manufacturing and many other sectors. High energy costs can be a constraint on growth, while efficiency gains can boost productivity.

Innovation and R&D encompass activities and investments aimed at advancing technology or creating new products and services. This can lead to increased productivity and economic growth through better quality, reducing costs, and opening new markets.

Macroeconomic stability, characterized by stable prices, moderate inflation, and sustainable fiscal policies, provides an environment conducive to economic growth. Stability encourages investment and savings, necessary components for funding growth-driven expenditures.

Aggregate demand represents the total demand for goods and services in an economy at a specific time and price level. An increase in aggregate demand can drive economic growth in the short run, stimulating production and potentially leading to higher employment.

Political stability and sound governance reduce uncertainty and are conducive to investment and economic planning. This stability can result in a more predictable business environment, encouraging domestic and foreign investment, which supports economic growth.

Labor mobility refers to the flexibility and freedom of the workforce to move and apply their skills to different positions within an economy. High labor mobility allows for a more efficient allocation of labor, reduces unemployment, and can contribute to economic growth.

Structural changes refer to shifts in the economic framework or the balance of industries that make up the economy. Such changes, from agriculture to industry to services, can lead to productivity improvements and economic growth if there is a move towards more value-added sectors.

Business confidence measures the level of optimism or pessimism that business managers feel about the prospects of their companies and the economy. High business confidence can lead to increased investment in capital and hiring, promoting economic growth.

Accessibility to markets both domestically and internationally is important for economic growth. Efficient transportation and trade logistics can reduce costs, increase competitiveness, and facilitate the exchange of goods and services, fueling economic expansion.

Institutional factors like property rights, political stability, and regulatory frameworks can play a significant role in encouraging or hindering economic growth. Strong institutions can promote business investment, innovation, and productivity, while weak institutions can lead to inefficiencies and corruption.

Productivity measures, such as GDP per hour worked or output per worker, quantify the efficiency of production in the economy. Increases in productivity measures can indicate economic health and growth, leading to higher standards of living and potential increases in real wages.