They made a significant contribution to the creation of modern theories of economic growth. Note that the theory of economic growth. Methods of influencing the economic structure

As is known, economic growth is understood as a long-term sustainable development of the economy - the process of increasing national income and gross domestic product in the long term without disturbing the equilibrium state of the economy. Modern economic growth is a development in which the long-term growth rate of production steadily exceeds the rate of population growth.

Factors of economic growth are phenomena and processes that determine the pace, scale and quality characteristics of the increase in the real volume of national production. Factors of economic growth are classified according to various criteria.

In accordance with the allocation of types of economic growth, its factors are divided into two groups: extensive and intensive. The extensive factors of economic growth include the growth of capital and labor costs, the intensive factors include scientific and technological progress, improving the quality of human capital, improving the management system, etc.

Economic growth always acts as a result of economic and non-economic factors. Economic factors include an increase in the quantity and improvement of the quality of the resources used, non-economic factors - military-political, geographical, climatic, national, cultural, etc.

According to the method of influencing the process of economic growth, direct and indirect factors are distinguished. Direct factors include changes in the quantity and improvement in the quality of the labor, natural and capital resources used; improvement of technology and organization of production; the level of entrepreneurial activity of the population. Indirect factors include resource prices, the degree of monopolization of markets, the nature of income distribution in society, the taxation system and the credit and financial system, the volume of effective demand, etc.

Indicators of economic growth are divided into quantitative and qualitative. The main quantitative indicators are indicators of absolute growth or growth rates of real output in general and per capita.

The dynamics and growth rates of real GDP characterize the overall scale of the national economy, the change in its share in the world economy: ∆GDP = GDPt - GDPt-1, Tr = ∆GDPt / GDPt-1, where t is the time index.

The ratio of real GDP to population - GDP per capita - gives an idea of ​​both the rate of economic growth and the change in the well-being of the population in this connection. Information about the dynamics of production per capita is used to characterize the standard of living and compare it with the standard of living in other countries.

In addition to general quantitative indicators of economic growth (GDP and GDP per capita), a number of private indicators are used.

Labor productivity in general is characterized by the ratio of the volume of output and the cost of labor resources. It is measured by the ratio of output (on a national scale - national income) to the cost of living labor.

The labor intensity of production is an indicator that is the inverse of labor productivity. Labor intensity is the cost of working time for the production of a unit of output.

Return on assets - the ratio of the produced product to the cost of capital.

The capital intensity of production is an indicator that is inverse to the return on assets. Capital intensity is a ratio showing how much additional capital is needed to produce a unit of output.

In addition to quantitative indicators, qualitative indicators of economic growth are also used that characterize its social orientation: indicators of the dynamics of the population's free time, the degree of social protection of the population, the development of social infrastructure, the growth of investment in human capital, etc.

It should be noted that in pre-industrial and industrial societies, material factors were the main source of economic development. The formation and development of a post-industrial society is based on human capital. According to the calculations of American economists, in 1890, 50% of GDP was accounted for by raw materials. After 100 years, their share did not exceed 10% - the leading place was occupied by factors related to human capital. In modern conditions, in any sphere of economic activity, human capital is the main factor in economic growth, competitiveness and efficiency.

Theories of economic growth are theories that study the relationship and interdependence of the main macroeconomic indicators and economic growth rates. The authors of these theories in their various versions tried to find sources of economic growth, solve the problems of potential and sustainable economic growth, and determine the conditions for achieving long-term dynamic equilibrium. The main thing in these models is to find ways to achieve the goal of optimal growth.

The main theories of economic growth are:

Keynesian models of dynamic equilibrium: Harrod and Domar's model.

The neoclassical model of economic growth: the Cobb-Douglas production function.

Economic-mathematical model of intersectoral balance "costs - output" V. Leontiev.

The concept of "zero economic growth".

As is known, economic growth means long-term sustainable development of the economy - the process of increasing national income and gross domestic product in the long run without disturbing the equilibrium state of the economy. Modern economic growth is a development in which the long-term growth rate of output consistently exceeds the rate of population growth.

Factors of economic growth - these are phenomena and processes that determine the pace, scale and qualitative characteristics of the increase in the real volume of national production. Factors of economic growth are classified according to various criteria.

• In accordance with the allocation of types of economic growth, its factors are divided into two groups: extensive and intensive. To extensive factors economic growth include an increase in the cost of capital and labor, to intensive factors - scientific and technical progress , improving the quality of human capital, improving the management system, etc.


• Economic growth always acts as a result of economic and non-economic factors. To economic factors include increasing the quantity and improving the quality of the resources used, to non-economic factors - military-political, geographical, climatic, national, cultural, etc.


• According to the method of influencing the process of economic growth, direct and indirect factors are distinguished. To direct factors include a change in the quantity and improvement in the quality of the used labor, natural and capital resources; improvement of technology and organization of production; the level of entrepreneurial activity of the population. To indirect factors include prices for resources, the degree of monopolization of markets, the nature of the distribution of income in society, the taxation system and the credit and financial system, the volume of effective demand, etc.

Economic growth indicators divided into quantitative and qualitative. Main quantitative indicators are indicators of absolute growth or growth rates of real output in general and per capita.

• Dynamics and growth rates of real GDP characterize the overall scale of the national economy, the change in its share in the world economy: ∆GDP = GDPt - GDPt-1, Tr = ∆GDPt / GDPt-1, where t is the time index.
• Ratio of real GDP to population - GDP per capita - gives an idea about the rate of economic growth, and about the change in this regard, the well-being of the population. Information about the dynamics of production per capita is used to characterize the standard of living and compare it with the standard of living in other countries.

In addition to general quantitative indicators of economic growth (GDP and GDP per capita), a number of private indicators are used.

• Labor productivity in general, it is characterized by the ratio of the volume of production and the cost of labor resources. It is measured by the ratio of output (on a national scale - national income) to the cost of living labor.
• Labor intensity of products is the inverse of labor productivity. Labor intensity is the cost of working time for the production of a unit of output.
• return on assets - the relation of the made product to expenses of the capital.
• Capital intensity of products is an indicator that is inverse to return on assets. Capital intensity is a ratio showing how much additional capital is needed to produce a unit of output.

In addition to quantitative, are used and qualitative indicators of economic growth characterizing its social orientation: indicators of the dynamics of the population's free time, the degree of social protection of the population, the development of social infrastructure, the growth of investment in human capital, etc.

It should be noted that in pre-industrial and industrial societies the main source of economic development was material factors . The formation and development of a post-industrial society is based on human capital . According to the calculations of American economists, in 1890, 50% of GDP was accounted for by raw materials. After 100 years, their share did not exceed 10% - the leading place was occupied by factors related to human capital. In modern conditions, in any sphere of economic activity, human capital is the main factor in economic growth, competitiveness and efficiency.

Theories of economic growth - these are theories that study the relationship and interdependence of the main macroeconomic indicators and economic growth rates. The authors of these theories in their various versions tried to find sources of economic growth, solve the problems of potential and sustainable economic growth, and determine the conditions for achieving long-term dynamic equilibrium. The main thing in these models is to find ways to achieve the goal of optimal growth.

The main theories of economic growth are:

• Keynesian models of dynamic equilibrium: Harrod and Domar's model.
• The neoclassical model of economic growth: the Cobb-Douglas production function.
• Economic-mathematical model of intersectoral balance "costs - output" V. Leontiev.
• The concept of "zero economic growth".

Coursework on economic theory on the topic

Completed by student: Dulikov A.G., Group: 3212.

Moscow State Industrial University

Faculty of Economics, Management and Information Technologies.

Moscow 1999

The economic growth.

At the end of the 20th century, the problem of economic growth throughout the world was put forward in a number of priority problems of economic development. The fate of any country now depends on the mechanism of economic growth, which allows the most efficient use of the achievements of scientific and technological progress. The world economic science has long begun to study the trends of economic growth. This topic is of particular relevance for the current stage of economic reforms. Any measures to reform the economy should fit into the general trend of economic growth of industrialized countries at the turn of the 20th and 21st centuries. Economic growth has become a constant phenomenon, that despite some decline in output and even a deep decline in production that took place in many developing countries in the 80s, the long-term development trend in the economy of most countries of the world is steadily upward. The average annual growth rate of production per capita in 1820 - 1980. in industrial countries amounted to 1.6%. During the same period, the population increased by 1% annually. Analyzing the origins of the modern ER, E. Maddison divided the last fifteen centuries into 4 stages: agrarianism, developed agrarianism, commercial capitalism and capitalism. It is indicative that the growth rate up to the fourth stage remained very low. And only in the phase of modern capitalism did a sharp leap occur. S. Kuznetsov also believed that the acceleration of the rate of ER in England, Germany and the United States arose during the prom. revolution, that is, when capitalism becomes the leading economic system. In the process of ER, important evolutionary changes in the structure of the economy take place. The main distinguishing feature of modern growth is the decline in the relative share of the agricultural sector in total output and employment. Another characteristic feature of modern ER is urbanization, as a result of the prosperity of the industry. The problem of ER acquired particular relevance after the Second World War, and the boom in the development of these theories falls on the 50s-60s, although the first attempt to give a holistic view of the mechanism of functioning and development of the national economy was made by J. Schumpeter in the 20s-30s of the twentieth century.

Economic growth (ER) is usually understood as a change in the results of the functioning of the productive forces of society and consumed resources. Economic growth determines the nature of the functioning of the national economy.

Economic growth is defined and measured in two interrelated ways: as an increase in real GNP over a period of time, or as an increase over a period of time in real GNP per capita. Both definitions can be used. When comparing the living standards of the population in individual countries and regions, the second definition is preferable. Based on any of these definitions, economic growth is measured by the annual growth rate in %. Economic growth itself is contradictory.

An increase in the social product per capita means an increase in the standard of living. The growth of a real product entails an increase in material abundance. A growing economy has a greater ability to meet new needs and solve socio-economic issues domestically and internationally.

The issues of economic growth have become particularly acute for the world community as a result of the fact that a contradiction has been revealed between the production of material goods and the unbridled depletion of natural resources, accompanied by environmental pollution. Thus, a new approach to understanding the essence of economic growth is important not only from the point of view of destroying the contradiction between production and consumption, but also from the point of view of the survival of mankind.

Contradictions "" production - consumption "" is closely related to economic growth. With the development of commodity production, the contradiction between production and consumption develops, it manifests itself in crises of overproduction, the formation of a shortage of certain types of products. The deepening contradiction slows down the pace of economic growth.

Economic growth makes sense when it is combined with social stability and social optimism.

In modern conditions, the manifestation of the contradiction between production and consumption is expressed, first of all, in the irrationality of the development of production forces, accompanied by environmental pollution. Nature puts a limit to the unrestrained growth of production. A further increase in production is thus hampered by consumption itself.

Today, economic growth is an important feature of the modern world. The population grows, the scale of production and employment, the national product, the standard of living, the free time from work increases - economic growth occurs.

Types of economic growth.

There are two main types of economic growth: extensive and intensive.

Extensive economic growth means a purely quantitative increase in the volume of production of goods and services with the qualitative invariance of production factors.

Extensive factors of economic growth are: growth in the volume of consumed raw materials, materials, fuel; increase in employed workers; increasing the volume of investments while maintaining the existing level of technology. Extensive growth is historically the original way of expanded reproduction. Therefore, it has a number of negative characteristics, which are a consequence of the imperfection of this type. The extensive path, due to the involvement of more and more labor in production, helps to reduce the unemployment rate and ensure the greatest employment of labor resources. A program to restore and maintain full employment on a reasonable scale is an indisputable means of accelerating growth.

Intensive economic growth is due to the fact that the increase in the production of goods and services is provided by an increase in the efficiency of production factors. This type of production leads to overcoming the limited production resources, promotes the technological process.

Intensive factors of economic growth are: improved use of fixed and circulating assets; professional development of employees; acceleration of scientific and technical progress (first of all, the introduction of new equipment and technologies through the renewal of fixed assets); improvement of the organization of production. In reality, two opposite types of economic growth can interact, exist together, since the intensive use of some types of production resources is often achieved through the extensive use of others. Depending on which factors prevail, one speaks of predominantly extensive or predominantly intensive types of economic growth. Intensive development is more successful than extensive.

In the study of economic growth, as in the study of most economic problems, the time factor is essential. Over time, intensive growth factors can become extensive.

Measuring Economic Growth

Economic growth is measured either as an increase in some indicator of the volume of national production (GNP, GDP, NNP) over a certain period of time, or as an increase in this indicator per capita. Both methods of determining economic growth are used depending on the goals set, but in any case we are talking about growth rates (% per year).

Economic theory differs from other sciences in that all concepts and definitions are very versatile. This fully applies to the measurement of economic growth. The two main methods for measuring ER are necessary but not sufficient.

Economic growth is defined as a multifaceted concept that reflects the change in reproduction in space and time. The ER is characterized by quantitative and qualitative indicators, has a socio-economic result in the growth of national wealth and is aimed at increasing prosperity.

Economic growth rates

Economic growth is defined as the percentage growth in national output per capita or per capita at a given point in time. Therefore, there are high and low rates of economic growth.

In prosperous countries, the growth rate does not exceed 2-3% per year, but if these rates are maintained for at least 10 years, then this trend further strengthens the national economy.

But it also happens that the general trend of economic growth is violated. An example is the post-war growth of the German economy. After the end of World War II, the economy of this country was destroyed, but over the next few decades, this country raised its national economy to the level of economic superpowers.

The deterioration in the structure of the labor force affects the decline in economic growth.

Forecasts and prospects for economic growth

In this period of time, the state of the world economy is determined by the development of leaders - the United States, Japan and Western Europe. The US economy, which experienced a noticeable decline in the early 1990s, in 1997 achieved a very good GDP growth rate (5%).

The lack of special prospects for accelerating economic growth in the West makes experts think about the possibility of a radical redistribution of roles in the world economy by the beginning of the next millennium. The sustained high growth rates of the East Asian economies so far have led to the idea that developing countries in general have much better growth prospects. For example, leading economists believe that in the next 10 years the GDP growth rate of developing countries will be almost twice as high as that of industrialized nations.

Growth theories study the long-term phenomena associated with the impact of savings and investment on increasing the level of potential GDP and national income.

Economic growth is affected by that portion of investment that shifts the production possibilities curve to the right. This is, firstly, private investment that increases production capacity. Secondly, these are government spending, expanding the road network, etc., improving health care and education services, and raising the level of basic research.

With regard to savings, it is known that in the short run (during the recession), the growth of private savings leads to a reduction in aggregate demand and, consequently, to a decrease in the equilibrium level of output (income).

However, in the long run, an increase in the level of private savings can lead to an increase in the level of private investment. For this possibility to become a reality, the economy must have a developed and reliable network of financial intermediaries (banks, securities markets, etc.).

Total national saving includes private saving as well as a budget surplus (with a plus sign) or a budget deficit (with a minus sign): the larger the budget deficit, the lower the national saving rate, other things being equal, and vice versa.

Neoclassical theory of economic growth.

The theoretical basis of the neoclassical approach to the analysis of economic growth was the ideas of classical economists, primarily A. Smith and D. Ricardo.

However, the classics could only give a general picture of the phenomena that affect the process of economic growth.

• They showed that the basis of economic growth is the reinvestment of part of the profit, that is, the transformation of part of the profit into capital (into new physical capital), which they called capital accumulation.
• They argued (A. Smith) that economic growth is impossible without technical shifts in the form of a deepening division of labor and changes in production methods.
• They established (D. Riccardo) a close connection between the problems of economic growth and the problems of income distribution, since without additional capital it is impossible for additional labor to participate in production. Riccardo substantiated the conclusion about the inevitable decrease in the rate of profit, which worsens the possibility of capital accumulation, and, consequently, hinders economic growth. At the same time, he noted that the development of international trade works in the opposite direction, contributing to economic growth.

The neoclassical theory of economic growth deals primarily with the patterns of growth of potential GDP, disregarding deviations from the actual GDP, therefore, it relies on the analysis of average annual economic growth rates over a sufficiently long period. It abstracts from natural factors, considering them relatively constant, which makes it unsuitable for countries with large agricultural production and a significant extractive industry.

The neoclassical followers of Smith and Riccardo, using the Cobb-Douglas production function, interpret it in accordance with the theory of diminishing marginal productivity of capital and labor with their joint productivity unchanged.

Cobb-Douglas function: X \u003d f (K a, L b),

where X is the volume of production; K, L - volumes of capital and labor; a< 1,

b<1, но a + b = 1.

R. Solow in 1957, using this simple model, calculated the growth GDP for the period from 1909. to 1949 He came to the following conclusion: only half of the GDP growth during the study period can be explained by a joint increase in labor and capital. He attributed the remainder (“the Solow remainder”) to technical progress, that is, the joint productivity of both factors as a result of their qualitative improvement.

Subsequently, neoclassical scientists identified two types of technological progress:

• embodied (materialized) - embodied in physical capital (new technology, new materials, etc.);
• non-embodied - new forms of labor organization, achievements of management science, marketing, accumulation of experience, etc.

Gradually, neoclassicists began to understand that technological progress is not something exogenous (external) in relation to the economy, but is due to the internal forces of the economy itself and leads to an increase in the marginal productivity of factors.

Further studies of the neoclassical school are connected with the detailing of various factors of economic growth.

A common drawback of all neoclassical models is ignoring the problems of aggregate demand, in particular the fact that investment, being a factor in aggregate supply (minus depreciation characterizes the growth of fixed capital), is at the same time a factor in aggregate demand.

Keynesian interpretation of economic growth.

Keynes's macroeconomic theory, as is known, seeks (and finds) an answer to the question of whether it is possible to achieve full employment of resources in the economy as a whole, putting the problem of aggregate demand at the forefront.

The followers of Keynes (E. Domar and R. Harrod), based on the Keynesian analysis of aggregate demand, created models of economic growth.

Domar model explores the dual role of investment - in expanding aggregate demand and in increasing the production capacity of aggregate supply (potential GDP) - in time. Domar posed the question: if investment increases production capacity and also creates additional income, how much additional investment must grow so that the rate of income growth equals the rate of increase in production capacity? Domar came up with an equation, the solution of which gave the required growth rate.

Harrod model explores the growth trajectory of the economy. Particular attention is paid in the model to the rate at which the national income should grow ( Y) to satisfy the condition of Keynesian economics:

savings ( S t) = investment ( I t ),

where t denotes a period of time.

Introducing the concept accelerator, Harrod came up with the equation

where s is the marginal propensity to save and the average propensity to save, a- accelerator, Δ Y t \u003d Y t -Y t-1 .

The solution to this equation determines guaranteed economic growth rate. It differs from him "natural" the growth rate, which is determined in the model by the growth rates of the labor force and labor productivity.

If the natural growth rate exceeds the guaranteed one, then there is a long-term recovery of the economy. If the natural rate is less than the guaranteed one, then long-term stagnation takes place (a situation in which the economy remains in a recession or depression phase for a long period of time).

4. Macroeconomic policy of economic growth

In order to stimulate economic growth, the state uses the methods of fiscal (reducing taxes and increasing government spending) and monetary policy (increasing the money supply and lowering interest rates), that is, it implements a policy demand management .

In addition, the state has a policy supply management , stimulating the growth of the productive potential of the economy. This policy includes:

• measures to reduce taxation to increase the proportion of workers in the total population;
• financial incentives for investment in buildings and equipment, as well as investment in technology, invention of new products and innovation;
• measures for education and retraining of personnel to increase the number of employees with the required qualifications;
• encouraging competition in the financial sector to improve the efficiency of capital markets;
• privatization and reduction of state control over industry to maintain the efficiency of industrial production;
• promoting regional policies by stimulating labor mobility;
• reducing tax rates and reforming the social security system to create incentives for intensive work;
• limiting the power of trade unions to increase the flexibility of labor markets.

The industrial policy pursued by the state also contributes to the increase in the productive potential of the economy: the state takes a direct and active role in shaping the structure of industry to encourage economic growth. This policy firstly, includes measures that accelerate the development of high-productivity industries and facilitate the movement of resources from low-productive to high-productivity industries. Secondly, the state assumes the costs of fundamental research, stimulating scientific and technological progress. And finally third, the state increases spending on education, improving the quality of the workforce and increasing labor productivity.

The concept of economic growth and its measurement

The problems of economic growth have confronted man in the last 200 years. Until the 18th century these problems did not confront economists. For the first time, mercantilists spoke about economic growth, and then only indirectly. More or less substantively, this problem was posed by the physiocrat F. Quesnay (1694–1774).

Under economic growth refers to changes in the real volume of national production based on the positive dynamics of the gross national product. If all factors of production are used rationally (the economy is at the frontier of its production possibilities), then the real volume of production reaches its maximum value. This is the so-called potential economic growth, which is interpreted as a movement from one long-term equilibrium state to another. In this approach, the focus is on economic growth and supply-side factors.

When production resources are used insufficiently or incompletely, the actual real volume of production will be less than the potential. When analyzing actual economic growth, the subject of study is not only the factors that determine the economic dynamics of production opportunities, but also changes in sectoral proportions, the transformation of the structure of the economy in the process of growth, government policy to stimulate or curb growth, the reasons for the lagging of actual output from potential, etc. d.

There are two main types of economic growth. Economic growth can be extensive or intensive. There is also a mixed type that combines the above types.

At extensive type of economic growth, the expansion of the volume of material goods and services is achieved by increasing the number of economic factors and resources: the number of workers, labor, land, raw materials, etc. With extensive growth, constant proportions remain between the growth rates of real production and real total costs for its creation.

At intensive type of economic growth, the expansion of production is ensured by a qualitative change in the optimal use of factors and resources of the economy: the use of advanced technologies, the use of labor with higher qualifications and labor productivity, etc. In this case, the growth rate of real production volumes will exceed the rate of change in total costs for its production.

The essence of economic growth is the resolution and reproduction at a new level of the main contradiction of the economy: between the limited production resources and the boundlessness of social needs. This contradiction can be resolved in two main ways: by increasing production capabilities, by making the most efficient use of existing production capabilities, and by developing social needs. However, the process does not end there: at each new stage of development, with the expansion of production capabilities, not all social needs are satisfied.

The economy of any country not only produces a national product, but also recreates that part of it that is spent on production and non-production consumption. In a modern market economy, the reproduction of the national product in the long run is expanded. This means that in the current period of time more product was produced than it was used in the previous period. The dynamics of expanded reproduction just characterizes such a phenomenon as economic growth.

The economic growth- this is the development of the national economy, which increases real national income, real gross domestic product.

Economic growth is measured by the growth rate of real national income or real GDP as a whole or per capita. The growth rate of real GDP is the ratio of the difference between real GDP in the period under review and in previous periods to real GDP in the previous period:

where Yt- the volume of real GDP in the period under review; Yt-1- the volume of real GDP in the previous period.

The indicator of economic growth is not always a positive value. If in the period under consideration the total product is reproduced in the same volumes as in the previous one, then we say about zero economic growth. If the national product is not fully reproduced, but only partially, then we are talking about negative economic growth.

In all countries, economic growth is given great attention. First, it leads to an increase in the volume of real material products and services, and, consequently, to an increase in the real standard of living; secondly, economic growth makes it possible to more effectively solve the problems of education, ecology, and poverty; thirdly, real economic growth means that society reduces production costs and increases labor productivity.

Each country in the modern period solves the following problems of economic growth:

• determination of trends and sources (factors) of growth;
• ensuring the sustainability of economic growth in the long term;
• determining the consequences that a country may have by choosing one or another model of technological development;
• determination of the most effective growth rates for establishing a new structure of the national economy.

It is important to note that in order to realize the potential of economic growth, it is necessary that the incomes of workers grow at a rate equal to the growth rate of their labor productivity. World experience shows that the economy can develop sustainably only in those states where labor productivity is growing, the share of finished products in the export structure is increasing, etc.

Factors of economic growth

Economic growth depends on a number of factors. Factors economic growth - these are the phenomena and processes that determine the possibility of increasing the real volume of production, increasing the efficiency and quality of growth.

According to the method of influencing economic growth, direct and indirect factors are distinguished. Direct factors directly determine the physical capacity for economic growth, indirect factors affect the possibility of turning this ability into reality.

Five main factors that are directly related to direct factors and determine the dynamics of aggregate production and supply:

1. increasing the number of labor resources and improving their quality;
2. increase in the volume and improvement of the qualitative composition of fixed capital;
3. improvement of the organization and technology of production;
4. increasing the quantity and improving the quality of resources involved in the economic turnover;
5. growth of entrepreneurial activity and entrepreneurial abilities in society.

Indirect factors include supply, demand and distribution. Indirect supply factors:

1. reducing the degree of monopolization of markets;
2. decrease in prices for production resources;
3. tax cuts;
4. expanding opportunities for obtaining loans .

The economic growth of any country is determined by:

1. availability of natural resources in quantitative and qualitative aspects;
2. the quantity of labor resources and their qualitative state (educational and qualification aspects);
3. the volume of fixed production assets (capital) and their technical condition (wear and tear, productivity, reliability);
4. technologies (its novelty, implementability, effectiveness, payback). These factors are called supply factors, for it is their supply that makes economic growth physically possible;
5. the degree of completeness and efficiency of the use of natural, industrial and labor resources;
6. efficient and fair distribution of the growing volume of resources and the volume of real production.

If the application of indirect factors occurs in the reverse order (monopolization increases, taxes increase, etc.), then economic growth will be restrained.

Factors demand make it possible to implement a growing volume of production, among which are such as the growth of consumer, investment and government spending, the expansion of exports due to the development of new markets or the increase in the competitiveness of the country's products on the world market.

To factors distribution include: the actual structure of the distribution of production resources across industries, enterprises and regions of the country, as well as the existing procedure in society for the distribution of income between business entities.

These factors affect both the ability of the economic system to grow and its efficiency.

Economic growth is always the result of economic and non-economic factors. The latter include military-political, geographical, climatic, national, demographic, cultural, etc. The growth rate of the national economy as a whole is a weighted average of regional rates, which can vary significantly. A spatial approach to the national economy requires a joint analysis of the national growth rate and the distribution of regional rates. The influence of certain factors on economic growth may be more or less noticeable, but they are especially effective in interaction.

To represent the overall effect of economic growth factors, you can use the production possibilities curve (Fig. 13.1).

Rice. 13.1. Economic growth and the production possibilities curve.

This curve shows the maximum production of two or more products. Society determines the preferred combination of products. The limited natural and labor resources make any combination impossible at a point outside the curve. The points of best combination of production are on the curve itself. Any point within the curve indicates an inefficient use of resources. This curve quite clearly shows the largest number of variants of manufactured products that can be produced with a given quality and quantity of natural and labor resources, the state of fixed capital and at a given level of technology development. As can be seen in the figure, an increase in the positive influence of any of the growth factors shifts the production possibilities curve to the right. Society never uses its full potential, because it is always necessary to solve not only the issue of maximizing the use of growth factors, but also the social and economic contradictions generated by them.

To present in general the influence of economic growth factors on its dynamics, we use the concept of a production function. We are talking about a macroeconomic function, which is a function of the equilibrium state of output and the factors of production that determine it (capital, land, labor, technical progress).

The mathematical representation of the production macroeconomic function is quite simple:

and where X and Y- volumes of production; F, f- the nature of the function; a1, a2...., up- factors of production and growth; L- labor; N- Earth; To- capital.

The main indicator of economic dynamics at the national level is the GDP growth rate, and at the regional level - the growth rate of the gross regional product (GRP). This follows from the generally accepted methodology of macroeconomic measurements - the system of national accounts (SNA) and the system of regional accounts (SRS). Russia is characterized by such a concept as diffusion of economic growth.

In a heterogeneous economic space, such as the territory of the Russian Federation, the transition from one stage of economic dynamics to another simultaneously and everywhere is a rather complicated process.

Economic growth indicators

The productivity of social labor the most important indicator of economic growth. It is measured by the ratio of output (on a national scale - national income) to the cost of living labor: Y/L. Labor productivity most comprehensively characterizes economic growth. The reverse of it L/Y(labor intensity of production) shows how much labor is necessary for society to produce a unit of output.

Index Y/K characterizes the productivity of capital, or more familiar to us return on assets, showing how much production is received per unit of fixed Y funds. The reverse of it -Y/K(capital intensity of production) determines how many fixed assets took part in the production of a unit of output.

Index Y/N- the ratio of the produced product to the costs of natural resources - characterizes the attitude of a person to natural resources, that is, how productively, rationally limited resources are used. Indicators of economic growth based on the line "factor of production - income" are considered to be private indicators, i.e., characterizing only bipolar relationships. There are more synthetic indicators in which all the above indicators and a number of others are concentrated, for example K/L- the ratio of capital to labor costs. It reflects both technical progress, and the concentration of capital, and its centralization, and the intensification of production, etc. This indicator has a more traditional name - the organic composition of capital. It is the most common expression and productivity.

From the point of view of marginal analysis (marginal indicators), indicators of the marginal productivity of factors of production are very important, which characterize the size of the increase in national income from the increase in the corresponding factor:

The total contribution of factors of production to national income in this case will look like this:

Consequently, the amount of national income produced is equal to the sum of the products of the magnitude of each factor and its marginal productivity.

Extensive and intensive economic growth

It is possible to increase production only either by increasing the costs of production factors, or by improving technology. These directions of economic growth are closely linked to the strategic directions of economic development in general: the extensification and intensification of production.

Extensive economic growth - an increase in social production by increasing the qualitatively identical factors of production:

• the number of employed workers without improving their skills;
• consumption of material factors of production: raw materials, materials, fuel, land without increasing the efficiency of their use;
• capital investment without a corresponding improvement in technology.

With extensive economic growth, constant proportions remain between the growth rates of real output and the real total costs of its creation.

Intensive economic growth is an increase in the volume of national production due to more efficient (intensive) use of existing factors of production:

• expanding the production of material goods and services through the introduction of new, more efficient technologies through the renewal of fixed assets (means of production), in other words, through the introduction of scientific and technological progress into production;
• improving the organization of production (a new structure of economic relations, management, marketing, cooperation) and, as a result, increasing its efficiency;
• improving the use of fixed and circulating assets, accelerating their turnover, accelerated depreciation, etc.;
• the constant growth of the qualifications of the labor force and the improvement of the scientific organization of labor.

  With intensive economic growth, the growth rate of real production volumes will exceed the rate of change in the total costs of its production.

Under the conditions of scientific and technological progress, intensive economic growth may be characterized by a zero or insignificant increase in the national product, but be accompanied by a significant increase in the quality characteristics of manufactured products.

Both extensive and intensive economic growth exist simultaneously, dominating each other at different time stages. The predominance of one type or another is due to the existence of various combinations of factors of production.

1. Economic growth refers to long-term changes in the real volume of national production based on the positive dynamics of the gross national product. Its essence is in resolving and reproducing at a new level the main contradiction of the economy: between the limited production resources and the boundlessness of social needs. This contradiction can be resolved in two main ways: by increasing production capabilities, by making the most efficient use of existing production capabilities, and by developing social needs.

The indicator of economic growth is not always a positive value. If in the period under review the total product is reproduced in the same volumes as in the previous one, then we can talk about zero economic growth. If the national product is not fully reproduced, but only partially - about negative economic growth.

2. Factors of economic growth are those phenomena and processes that determine the possibility of increasing the real volume of production, improving the efficiency and quality of growth. According to the method of influencing economic growth, direct and indirect factors are distinguished. The macroeconomic production function is a multifactor model of economic growth.

3. The main indicator of economic dynamics at the national level is the GDP growth rate, and at the regional level - the growth rate of the gross regional product (GRP).

4. Extensive economic growth - an increase in social production by increasing the same qualitative factors of production.

5. Intensive economic growth - an increase in the volume of national production through a more efficient (intensive) use of available factors of production.