An economic growth means a better and more sustainable life for citizens of a country involved, the wealth level of the citizens keep increasing as more people appear to move from a difficult life situation to a sustainable life pattern of finance. But not every country is experiencing growth and this means there are certain things that contribute to the growth of country unlike other places.
Causes of Economic Growth.
Countries that are close to water bodies usually record a high GDP, this is not just a coincidence it is logical and it has been like that for a long time the reason is because water serve as a cheaper form of transportation and those countries that are close to water bodies find the access easier. Wherever trade is easy for people, there is usually a high increase in economic value as well as civilization.
Access to water reduced the cost of trade and gave merchants access to larger markets –Adam Smith.
A country where the economic growth is slow can be ascribed to low trade volumes, when it is difficult to carry out trade in a country the outcome on the economy is usually really slow, Africa for example is one very large country where trade is difficult for citizens and certainly the tax is enormous and this makes the number of people that go into trade greatly reduce.
There are countries that are naturally blessed and this is of course an added advantage for the economic growth of such countries, it helps make trade transactions a lot easier and even much more convenient while the level of economic growth keeps on increasing in those regions and other countries that are not so blessed with natural resources may just have to struggle with growth for some time.
The rich countries we find around are usually blessed with strong political influence such as sufficient capital, available human resource and good technological influence. The humans in rich countries are smart enough to always think of things that will contribute to fast growth and economic stability and humans tend to give in more effect to the jobs they are doing when there is a promised extra reward for hard work which is one thing most poor countries lack, in poor countries the effort put into production or job is not equal to the result obtained and this just makes people put in less effort which in turn affects the country’s economic growth.