Sources of economic growth


 Sources of Economic Growth
Economists are not satisfied with
just trends and theories, but portray the
sources of economic growth. They attach
special importance to the calculation of
growth, so that the ingredients are
thoroughly calculated that caused growth
trends. Japan and previously the Soviet
Union in the period 1930-1960. Years
have had enormous economic growth.
With the help of calculating economic
growth economics experts have
discovered that the GDP of Japan grew
at a rate of 10% per year (astonishing but
true) due to the growth of inputs with
rapid technological change (much faster
than in other countries). When analyzing
the growth of the Soviet Union in the
mentioned period resulted primarily
from an increase in forced inputs of
capital and labor

Labour productivity is the most
important factor of economic growth. It
represents the ratio of total output
divided by the number of worker-hours
in a particular sector, or at the level of
the economy. If it slowed down the
search are the reasons, and as a
justification cited the following reasons:
(Ilić, 2005)
1. Investment Enterprises in nature
conservation, improving health and
safety in the workplace. This was
particularly true of mining, construction
and services.
2. Increases in energy prices, especially
after 1970 and 1990, when the company
began replacing other energy inputs,
capital and labor. The result is a
reduction in the productivity of labor and
capital in relation to previous growth
(JPMNT) Journal of Process Management – New Technologies, 

Vol. 3, No.1, 2015.
3. After the 70s, there was a change of
generations of workers who are
inexperienced and inadequately trained
to work with low wages, which is
particularly applicable to the non
industrial sectors, such as areas in the
preparation of fast food and the like. In
addition to these basic factors that
caused lower productivity, it should be
noted smaller size allocations for civilian
research and development, to reduce
investment in plant and equipment,
increased the rate of inflation and the
like. These are just some of the factors
that have slowed productivity. In that
sense, there is a need to explore the
possibility of increasing labor
productivity. In order to achieve this it is
necessary to increase national savings
and investment, which is the most
difficult to achieve.

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