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Economic Growth Assignment

An assignment on economic growth

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Ebenezer Jacob
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8 views

Economic Growth Assignment

An assignment on economic growth

Uploaded by

Ebenezer Jacob
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NAME: OKORDU CHARIS OYEWE

MATRIC NO: BUS/2020/2011

COURSE CODE: BUS 310

COURSE TITLE: NIGERIAN ECONOMY

ASSIGNMENT TOPIC:
WHICH SECTOR OF NIGERIAN ECONOMY CAN BE
REFFERED TO AS BROADBASE OF NIGERIAN ECONOMY,
AND WHY.

LECTURER IN CHARGE:
Dr. OLASEYINDE
INTRODUCTION
Economic growth is a complex phenomenon that is impacted by a wide range of
economic and non-economic factors. Policy-makers, economists, and companies wishing to
advance sustainable and inclusive growth must fully comprehend these factors. Here, we'll go
over the key economic and non-economic variables that affect growth.

Economic Factors
Investment: An important factor in economic growth is the investment in physical capital,
such as machinery, infrastructure, and technology. It boosts output, increases production
capacity, and promotes technological advancement.

Human Capital: The workforce's abilities, knowledge, and general well-being play a
significant role in economic expansion. Higher output and innovation are the results of
investments in healthcare, education, and training for workers.

Technological Progress: Technology development is a key factor in economic growth.


Efficiency, productivity, and industry competitiveness are all boosted by innovation and the
adoption of new technologies. Investment in research and development (R&D) and the spread
of new technologies are key factors in growth.

Natural Resources: Economic growth is influenced by the availability and effective use of
natural resources, particularly in resource-rich nations. If they are managed sustainably,
natural resources like minerals, energy sources, and agricultural products can serve as a base
for development.

Government Policies: For fostering a growth-friendly environment, sound economic policies


are essential. Economic expansion is supported by stable monetary policies as well as fiscal
policies that encourage infrastructure, education, and investment. Effective regulatory
systems, the protection of property rights, and trade policies all support growth.

Financial System: Economic growth depends on a functioning financial system. Businesses


can grow and innovate when there is easy access to credit, well-regulated capital markets, and
effective intermediation.

Non-Economic Factors
Political Stability and Governance: An environment that is favorable for growth is produced
by political stability, effective leadership, and the rule of law. Predictability, solid institutions,
and strong governance frameworks encourage investment, safeguard property rights, and
increase business confidence.

Social Factors: Long-term development is highly dependent on social factors, including the
standard of healthcare, education, and social infrastructure. Increased productivity, decreased
inequality, and economic development are all benefits of investments in human capital and
social welfare.

Demographics: Population size, age distribution, labor force participation, and migration
patterns are all examples of demographic factors that have an impact on growth. Economic
growth can be sparked by favorable demographics, such as a populace that is productive and
of working age.
Cultural Factors: Economic growth can be influenced by cultural factors, such as beliefs
about work, entrepreneurship, innovation, and risk-taking. Economic dynamism can be
promoted in societies where entrepreneurship is valued, innovation is rewarded, and a strong
work ethic is encouraged.

Environmental Factors: As a factor in long-term economic growth, environmental


sustainability is becoming more widely recognized. Economic growth is threatened by
environmental degradation, and implementing sustainable behaviors can strengthen resilience
and support green industries.

It is significant to remember that these variables interact and have an impact on one
another rather than acting independently. Furthermore, depending on particular
circumstances, their relative importance can differ across nations and regions. Therefore,
developing effective policies and strategies that promote long-term, inclusive economic
growth requires a thorough understanding of both these economic and non-economic factors.

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