Economic growth is one of the most important characteristics of any state, the goal that modern societies strive for.
Economic growth refers to the increase (quantitative and qualitative) of production per capita. Some dictionaries see this concept as a tendency to increase output per individual per capita.
Economic growth and its types are a progressive concept, however, this term has positive and negative characteristics.
The positive sides are:
• The growth of public security due to a steady increase in production.
• Against this background - the growth of the country's international image in economic terms.
• An increase in the number of the employed population and, as a result, an increase in the material security of the employed part of the population.
• Application of the latest technologies, positive changes in production technology, a qualitative change in working conditions.
Negative sides:
• Deterioration of the environmental situation, negative impact on the environment, depletion of resources.
• Overpopulation, especially of large cities with developed production infrastructure.
• Growth in labor intensity.
• The need for continuous training.
Economic growth and its types are an ambiguous concept. Officially highlighted as intensive and extensive economic growth. The extensive type is characterized by an increase in the quantitative power of all factors of production. This is the construction of new factories, the hiring of more workers, an increase in the number of machine tools, automobiles and other equipment necessary for the production of products.
Intensive types of economic growth are the rational use of existing factors of production. The factors of production in this case include advances in science, advanced training of workers, proper redistribution of resources, and savings.
However, economic growth and its types in reality represent a more complex system.
Economists distinguish:
• Uniform economic growth. It is observed in developed, leading countries: the USA, many European countries.
• “Miracles of growth”, which today the whole world surprises Japan, China, some other Asian countries.
• “The Tragedy of Growth” - a phenomenon of decline not only in economic growth, but also a steady decline in living standards, which threatens the death of members of such a society.
• Lack of growth. These types include, for example, Zimbabwe.
The nature of the development of the state and society, economic growth and its types are determined by very different factors. They are usually called sources or factors that drive economic growth. These factors are common to all countries. Scientists consider some sources of economic growth to be decisive.
• Content of natural resources. Naturally, the economy of a country with water, minerals, land or any other resources is developing faster than the economy of countries without natural wealth.
• Characteristics of labor resources: their quantity, skill level, employment, rational use.
• The height of scientific and technological development, the level of implementation of these discoveries in production.
• Availability of fixed capital. Without constant investments, capital updates, etc. economic growth stops.
• The rational structure of the economy, its ability to change rapidly in response to changing needs or economic conditions.
• Type of economic system. Historically proven that a market economy is more productive than others.
• Social and political factors that support business development, eliminate corruption, and promote a healthy attitude towards competition.
Speaking about the concept of “economic growth and its types”, it should be remembered that the other side of it in any country is economic instability, which can manifest itself in rising inflation, economic ups or downs, and imperfect taxation.
