How Can Economic Growth Be Increased?

Growth is an important objective of any country. It is the key to higher standards of living. It needs to be understood that economic growth brings in revenues and this means more schools, hospitals and facilities for people. Economic growth means any increase in the gross national product and gross domestic product. There are several ways to increase economic growth. Education and training increases the skills in people and thus raise the productivity of labour force. Illiteracy hinders rapid economic progress. Economic growth can be increased by economies of scale because large scale production can raise productivities. When the labour force is increasing an equivalent amount of investment needs to be made. Investment is a major factor in economic growth.

Many economists r of he view that new technology and the introduction of new techniques may be a more important cause of growth. Improving performance of machinery and management techniques, efficient transport and communication methods would definitely increase the industry's productive potential. Reallocating resources from primary production such as agriculture to secondary productions like manufacturing is another way increase economic growth.