growing economy characterized by a positive GDP growth used by the state to meet all needs.Accordingly, economic growth is characterized by an increase in both the GNP and NNP for a certain period of time.
To achieve maximum economic effect in any country there are two such ways: extensive and intensive economic growth are closely linked.
intensive economic growth would increase production volume with the help of the modernization of the factors of production (quality improvement).In other words, the use of other, more sophisticated means of production, cost of natural resources, improve the utilization of the existing stock of productive capacity and skills development.This principle of economic growth is an indicator of quality, since it makes use of new technology to improve the manufacturing process.
intensive economic growth achieved by increasing the return on assets of the enterprise.For example, to achieve a significant increase in output when using intensification of production, there is no need to build another factory.Intensive growth may be obtained by re-engineering or reconstruction of existing facilities, as well as better use of owned resources.
term "factor" is used as a source, the driving force of development.Factors of economic growth - the processes and phenomena that determine the pace, scope, and quality characteristics of the actual increase in production volume.Intensive growth factors include improving the quality of human resources, technological progress and the improvement of the management system.But to extensive factors include an increase in capital and labor.
Economic growth may be a result of the environmental impact of both economic and non-economic factors.Thus, the first include improvement of the quality of resources used in production, and to increase their number.To include non-economic geography, military, political, climatic, etc.
factors of economic growth can be classified and the way it impacts directly on the process.This direct and indirect.For example, to direct factors include the improvement of the quality of capital, labor and natural resources involved in the production.In other words, this type of factors determines the positive dynamics of the national economy.The second type, indirect, includes prices of various resources, taxation and credit and financial sphere and pay.
Intensive economic growth is characterized by the appropriate type of production, the main characteristic features of which are the following: capital intensity and fondosberegaemost.If asset-intensive forms of production typical of economic growth by increasing the amount of products at fixed plan costs.When fondosberegayuschey form achieved the rate of growth of output above the rate of increase in the resources that were used for this increase.
important features of an intensive expansion of production are:
- progressivity, which consists in the constant application of science and technology that has a positive effect on the development and improvement of means of production;
- raising the cultural and technical level of employees by upgrading basic "tools" production;
- resource conservation, contributing to overcome the limitations of natural resources.
