Economic growth, its types and development factors

Over the past century, many concepts of economic growth have been developed, and the main emphasis is on identifying certain aspects of the security system and its individual factors. Economic growth represents an increase in the country's production system , expressed in an increase in GDP or a net product in the enterprise. In some cases, it can take place without a significant change in production systems, in others - accompanied by significant improvements in the structure and functions of the entire production system.

Economic growth of the first type is characterized by a significant increase in economic resources - the production of new roads, enterprises, power plants. This type has the name - extensive economic growth. The second type of economic growth is called intensive growth, in this case, GDP growth outpaces growth in the increase in the number of available economic resources. In turn, intensive economic growth is one of the most important components of a prosperous society, however, the transition to it is extremely difficult.

The methods of influencing economic growth have direct and indirect factors. Direct factors are called factors that create the possibility of growth. Direct supply factors:

• Quality and quantity of natural resources;
• Quality and quantity of manpower;
• Technology and production organization;
• Volume of fixed capital;
• Development of entrepreneurial abilities and their level in modern society.

Indirect factors include conditions that allow realizing possible prerequisites for economic growth. Indirect factors are demand and distribution:

• Tax climate in the economy;
• Decrease in the degree of monopolization of the market;
• The effectiveness of the credit and banking system;
• Growth in consumer, government and investment spending;
• The possibility of redistribution of industrial resources in the economy;
• Expansion of export deliveries;
• Current income distribution system.

At the same time, extensive economic growth is considered the simplest type of growth, it provides an easy enough way to increase the pace of economic development and allows the country's economic potential to be increased in the shortest possible time. Extensive economic growth almost always precedes intensive growth. These are the most important indicators of economic growth, they are closely intertwined and has a special significance for the full realization of the productive potential.

To date, there are two theories that more or less explain the indicators of economic growth: neo-Keynesian and neoclassical. Both theories of economic growth have fundamentally different concepts regarding the economic situation in the country. Neoclassicists consider the market to be a mechanism capable of solving all existing problems in the country. Keynesians, in turn, argue that the market mechanism is extremely slow and can bring the economy to a new level still very soon.

The Keynesian theory was followed by the governments of many states in the postwar period, but as economic growth shifted to a new level, the negative sides of stimulating aggregate demand were also revealed . The supply could not keep up with the greatly inflated demand, prices began to rise and inflation became alarming. Therefore, the eighties were marked by the fact that most countries turned their attention to the position of neoclassicists.

Judging by the fact that the problems of economic development and growth are becoming increasingly important in Russia, in the future it is entirely possible that new efficient lines of production development will flourish, higher economic growth rates will be achieved, and, consequently, the material well-being of Russian citizens will increase.