What are the main factors that determine the economic growth of a country

The question aims to explore the key determinants of economic growth in a country.
The main factors that determine the economic growth of a country can be summarized as follows: 1. Human capital: The quality and quantity of a country's workforce, including education, skills, and health, play a crucial role in economic growth. 2. Physical capital: The level of infrastructure, such as transportation networks, communication systems, and energy resources, enables productivity and investment in a country. 3. Technological advancement: The ability to innovate and adopt new technologies drives economic growth by increasing productivity and efficiency in production processes. 4. Natural resources: The availability and proper management of natural resources can contribute to economic growth, particularly in resource-rich countries. 5. Political stability and institutions: A stable political environment, supportive legal frameworks, effective governance, and protection of property rights are important for attracting investments and fostering economic growth. 6. Macroeconomic stability: Sound fiscal and monetary policies, low inflation, and stable exchange rates create an environment conducive to economic growth. 7. Trade openness: Developing strong trade relationships and participating in international markets can boost economic growth by expanding markets and facilitating the exchange of goods and services. It is important to note that the significance of these factors can vary across countries depending on their unique characteristics and development stages.
Answered a year ago
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