Extensive economic growth

In modern economic science, the intensive and extensive type of economic growth are rigidly distinguished. Let's try to understand the features of these options.

Intensive production growth

Intensive growth is usually characterized by a significant increase in the scale of output. Moreover, it is important that this increase is based on the widespread introduction of qualitatively new, more efficient production factors in production. An increase in the scale of production is usually ensured through the use of various advanced technologies, scientific achievements, more modern technology, a reduction in the expenditure part of production, planned advanced training of workers, and so on. Actually, thanks to precisely these factors, labor productivity, resource conservation and product quality are expected and objectively increased.

Extensive production growth

This type is historically more ancient than the previous one. In particular, extensive growth is characteristic of primitive man. It is associated primarily with

expansion of production, increase in the volume of resources used in material production: attraction of additional labor, natural resources, expansion of arable land. However, what is important, not with the optimization of work, unlike the previous one. In addition, this type should include an increase in investment. The technological base does not change significantly. Extensive growth at certain stages of development is very progressive. For example, in cattle-breeding societies. However, sooner or later it leads to severe economic crises.