DETERMINANTS OF GROWTH
These determinant of economic growth can be
Grouped into three one demand factor, supply factor
And efficiency factor.
• SUPPLY FACTOR
Four of the determinants of economic growth relate
To the physical ability of the economy to expand .they are:
Increase in the quantity and quality of natural Resource
Increase in the quality and quantity of human resource
Increase in the supply of capital goods
Improvement in technology
These supply factor changes In the physical and technical Agent of production enable an economy to expand its Potential GDP
• DEMAND FACTOR
The fifth determinant of economic growth is demand factor
▪ To achieve the higher production potential created By the supply factor ,household ,business and govt
Must purchase the economy expending output of goods And services
When that occur there will be no unplanned increases in inventories
And resources will remain fully employed .Economic growth require
Increase in total spending to realize the output gain made available
By increasing production capacity.
• EFFICIENCY FACTOR
▪ To reach its production potential an economy must achieve economic As well as full employment .
The supply ,demand and efficiency factor in economic growth related. Unemployment caused by insuficient total spending may lower the Rate of new capital accumulation.
COMPARETHE GDP GROWTH RATE OF PAKISTAN AND INDIA
As of 2019, GDP of india is around of 10 times greater then pakistan Nominal terms gap is wider than ppp terms. India is 5th lagest country Of the word in nominated method and 3rd largest economy in ppp Method ….both countries together share 9.78% and 18.15% of total ASIA GDP.