Types of Economic Growth

Economic development is a multifactor process,which can be analyzed only for sufficiently long periods of time. In this regard, economic growth is one of the urgent problems of the economy for any country in the world. According to the dynamics of economic growth, one can judge about the development of the national economy, the standard of living of the population, ways to solve the problems of limited resources and others. The essence of economic growth is as follows.

The economic growth Is a process of gradual increase in volumesproduction on a national scale, taking place on the condition of increasing the resources used or the improvement of technology and technology. Factors and types of economic growth are determined by the way that the country chooses to accelerate the pace of development of the national economy.

Types of economic growth the following are distinguished: the so-called predominantly extensive and, accordingly, predominantly intense.

Extensive type historically developed earlier.This is the path of expanded reproduction. In this way, production volumes are expanding due to three factors: the growth of fixed assets (capital), labor and material costs (materials, energy carriers, natural raw materials).

The growth model in the absence of technological progress has the properties of the dependence of the return on the scale of the increase in the volume of individual factors.

Extensive types of economic growth for countriesare the easiest way to develop the economy. In this direction resort to the rapid development of resources, quickly enough to eliminate unemployment. However, this type of growth is also characterized by serious shortcomings: technical stagnation, lack of progress in public production efficiency, production assets are not updated, new developments are not being introduced. With the rapid development of natural resources in this development path, rapid depletion of the arable layer of the earth, mines, and sources of fossils simultaneously occurs. It is necessary to increase the means of production and labor costs, as a result of which economic growth is costly.

Intense type is more complicated. Its main feature is an increase in the efficiency of the main production factors, which is possible due to technological progress.

Intensive types of economic growth activates the growth of efficiency of all factors of production. With a constant value of costs and an increase in aggregate productivity, the size of production also grows.

With this path more effectively usedmeans of production. Their growth is due to the introduction of advanced technologies, scientific achievements, advanced technology, improved work items, increasing the knowledge and skills of personnel in production processes. This type of growth contributes to improving product properties, resource saving, increasing labor productivity, improving the use of the material base of the enterprise.

Features of this type of growth is thatit goes through with an increase in the productivity of production conditions, the development of scientific and technical information, and the improvement of the cultural and technical level of working employees. This development overcomes the barriers that are characteristic of the extensive type of growth. The development of the economy is transferred to the base of continuous economic progress, based on resource saving.

Intensification entails a progressiverestructuring the structure of the economy. However, with high rates of development and scientific and technological progress, this path can cause unemployment.

There are several types of intensification:labor-saving, capital-saving and comprehensive intensification. All these types of economic growth are based on the introduction of more advanced technology and scientific developments.