The Factors of economic growth

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Economic growth is defined as the increase in output per capita in the long term. It is a process and not a picture of the economic at a time. Two variables with high levels of aggregate economic output per capita growth and population and the high increase in productivity of production factors, especially in whole or in labor productivity. Two high levels of social and ideological transformation. While the two factors that affect the expansion of international economic growth is the tendency of developed countries in the world economy to reach out to get markets or export and the raw materials and economic growth are enjoyed by a third of the world's population.

International trade occurs because of two reasons, namely the existence of trading profits or gain from trade for the country, because of differences between them regarding the factors they have. In addition, to achieve economies of scale in production. That is, if each country produce only certain number of goods they can produce goods with a larger scale and therefore more efficient than if the country is trying to produce all kinds of goods. The fact that world trade patterns resulted, which resulted in economic growth, reflecting the combination of two motives mentioned above.

Factor of economic growth is influenced by human resource. Human resources is an important factor in the development process, faster than the development process depends on the extent of human resource development as the subject has sufficient competence to carry out the development process. Factors Natural Resources, most developing countries rely on natural resources in carrying out the construction process. However, natural resources alone does not guarantee the success of the process of economic development, if not supported by the ability of human resources in managing natural resources that are available.

Crisis, depression and stagnation make people think about the ineffectiveness and corruption of six or seven years ago there was a clear concern that the core of global economic development cannot be driven by a single locomotive, the United States. Economy is stuck in an awkward position, locked by a huge budget and trade deficits. Several theories of the state causing damage to Pakistan or India because of the factors that hinder development. Obstruction factor determined or derived by comparing the static. For this country, they experienced significant growth in the economy. But they had any growth. In other words, they don't have the research and development has resulted in those countries experiencing slow economic growth.

In addition, there are several features that lead the country is experiencing slow economic growth. Among the population, natural resource problems, lack of capital and low productivity.


About the excessive number of people who allegedly are often associated with under development. However, if seen, the country's population in 2010 was approximately 180,808,000. Their economy is not stable and its population density is low per capita income. This has caused the economy to be low.

In addition, high population growth will have an adverse effect on development if the job cannot be developed simultaneously. This is means that the high growth rate will only hinder development if it occurs in an economy cannot absorb the additional labor in an efficient and useful.


Unemployment is a person who belongs to the labor force and want to get a job but cannot get it. Unemployment problem that caused the level of national income and the level of prosperity is not reaching maximum potential macroeconomic problem of the most important.

Natural resources problem.

Other than the rate of population growth, high, low productivity levels also prevent the development. Low economic potential problems arising from natural sources such as low quality land, lack of materials, climate, transportation problems, and other. The low quality of the workforce in term of culture, education, health and food products. No doubt that one of the backward economic characteristic of low productivity levels but this situation cannot be fully accounted for the lack of natural resources.

Low productivity.

Comparison between backward countries and developed countries showed significant differences in terms of labor productivity. No doubt that low productivity is the main factor preventing thr development of money, because it slows the process of capital accumulation. Low productivity caused the most of the production capacity used to meet the needs of users, while only a small surplus left over for investment.

Labor productivity on the physical and intellectual capabilities. Therefore, some consider the development of the theory of weal physical and intellectual competence of workers and shortage of quality labors as the main reason for backwardness and poverty. Factors that hinder the development not only related the type and quality of agriculture and industry. Problem type and quality of labor that is due to the shortage of low plus entrepreneurships and manager and lack of technical experts, complicates the problem of backwardness.

Poverty is the biggest and the most hard problems Pakistan has been facing since four decades and is still valid now as the gap that has not been resolved. According to analysis conducted by the Pakistan government shows that recent poverty increased from 30 % to 40% over the last decade. Consider that if the 40% of the population are earning below the standard needed to live, to survive the poverty line, where people practically deprived of the most basic needs such as clothing, shelter, education, food and medicine.

Pakistan also suffers from a number of social, political and economic. With a population of about of half of the United States in an area slightly less than double the size of California, Pakistan is experiencing unwanted growth. While the projections show the population growth can actually be reduced Pakistan, the same projections estimate that by 2050, Pakistan will have a place regarded as the most populous country in the third world. A rapidly growing population, along with political tensions, both internal and external, and the economy stuck in a cycle of debt, all work prevent Pakistan from achieving the necessary progress to move forward, and likely to survive.