Economy And Developed Country Go Hand In Hand
For economic growth to happen capital formation play an important role as well. The capital formation includes the following elements:
- Communication medium
- Power supply
All the above-listed products are listed under the manmade section and production and obtaining of all these things fall under the capital formation category. If the capital formation is implemented well, there will be an increase in the accessibility of capital for each worker which will, in turn, increase the ratio of capital: labor. When capital availability increases the work rate of the labor also increase which will automatically result in the economic growth and output of the country and the output of your trade can be found using this continue reading.
Development in the Field of Technology
This type of development is considered the most important element that will influence the economic growth. Applying scientific techniques and production methods are involved when we say technology. We can define technology as the combination of nature and technical sort of instrument which are used by a fewer number of labors. When there is development in the field of technology, with just having fewer resources we can increase the rate of productivity. It has been observed there has been a rapid increase in the growth of the economy of the countries that work hard on technological development when compared to the countries that focus less on technological development. For the economy to grow to select the appropriate technology is essential because if the technology was chosen is not right then the cost of production will increase drastically.
Social and Political Factors
Social and political elements play a critical role in the growing the economy of the country. Social elements include:
- Religious beliefs
- Traditional values
All of which will have a considerable amount of effect in contributing to the economic growth of the country. Suppose there is a community that believes in traditions and has superstitious beliefs will not agree to adopt a new way of living a life which might be a modern way because of which achieving the economic growth becomes tough as there will not be a change in the standard of living.
Political factors include, getting involved in planning and implementing different policies by the government will play a big role in the growth of the economy. Political factors will include government policies and administrative practices as well. Moving from cultures that
involve farming to an industrial community will impact greatly on the economic development of the country.