Economic Groth

Economic Growth

In any nation , the government policies , institutions , and laws collaborate to create a growth infrastructure which coordinates enables , and encourages the economic behavior that results in the accumulation of human capital , physical capital , natural resources , and technology . These resources have a role in generating sustained long-run economic growth

Physical capital refers to the tools that are used to leverage the productive ability of an average worker . Physical capital includes transportation equipments , computers , machinery , and factories which facilitate the production of goods and services . They expand the capacity

of an economy to produce goods in the future , thereby promoting economic growth (Jones , 2002

Human capital refers to the numerous abilities that enable an average worker to apply and understand new , productive knowledge . An increase in the stock of human capital is achieved through education and on the job training . This equips workers with the appropriate skills to increase production , and , therefore , increasing economic growth

Natural resources provide the raw materials that are used in the production of goods and services . A nation that is endowed with adequate natural resources and has tools to extract them , can acquire the necessary raw materials for production and improve its economic growth in the long-run

Technological knowledge is used to bring scarce resources together to produce the required services and goods . Technology facilitates the production of better and more output from a given quantity of scarce economic resources , and this is what sustains the economic well-being and drives economic growth of a nation...