Key factors of economic growth

Under economic growth, it is customary to understand the increase in the volume of goods and services over a certain period (the increase in the potential and real GNP), the increase in the economic power of the country.

Economic growth means, first of all, a quantitative increase in production resources and the volume of the product produced, i. the growth of a new social product. However, these quantitative changes are inevitably associated with qualitative transformations: the improvement of personal and material factors of production in connection with scientific and technical progress, forms of management, the regulatory role of the state and integration processes. Moreover, these transformations are caused not only by economic factors, but also by social, political, demographic, and psychological factors. Hence, quantitative changes in production can not be considered outside the qualitative characteristics that determine it.

The essence of economic growth consists in resolving and reproducing on a new level the basic contradiction of the economy: the contradiction between the limited production resources and the limitless growth of social needs. Economic growth is expressed in the quantitative increase and qualitative improvement of GDP and its components.

Economic growth is the quantitative increase and qualitative improvement of the social product and the factors of its production. Economic growth occupies a central place in the reproduction process. This is due to the fact that, firstly, economic growth determines the level of the country's economic development, the level of satisfaction of needs and the standard of living; secondly, economic growth determines the country's place among other countries of the world, its competitiveness, the possibility of influencing world economic and political development; Thirdly, economic growth determines the prospects for the development of the country in all their diversity.

It is necessary to distinguish the conditions of economic growth and its results. The conditions for economic growth include: the state of the material and technical base, the availability of skilled labor, scientific and technological progress and the continuous renewal of the production apparatus, the optimal structure of production, the development of infrastructure, cooperation and specialization, natural resources and the availability of enterprises, the economic independence of enterprises and market development, economic policy of the state and other conditions.

The conditions for economic growth are the opportunities that the country has, its economic potential, the level of development of the productive forces and the corresponding production relations. Among the latter, above all, adequate forms of ownership, which give scope for the effective implementation of production factors. Macroeconomics of the countries of the world shows that economic growth is effectively carried out in countries with a high level of democracy, free enterprise, developed market relations with minimal government intervention in the process of reproduction.

The results of economic growth are manifested in the level of labor productivity, the rate of growth of the gross national product (GNP) and national income, in terms of meeting the needs and living standards of the population. From the point of view of production, economic growth is manifested in the continuous improvement of factors of production and production relations, the introduction of new technologies, which ultimately characterizes the level of economic development of the country and its level of economic power.

Economic growth is the main indicator of the country's economic development for the following reasons:

• 1.    Economic growth leads to an increase in the volume of real material product and services, and consequently, to an increase in the real standard of living;

• 2.    Economic growth makes it possible to more effectively solve the problems of education, ecology, poverty and many others without reducing the already achieved standard of living;

• 3.    Real economic growth means that society reduces production costs and increases labor productivity.

Each country in the modern period solves the following problems of economic growth:

• •    determination of the trend and sources (factors) of growth;

• •    Ensuring the sustainability of economic growth in the long term;

• •    determining the consequences that a country may have in choosing a particular model of technological development;

• •    What are the growth rates to be achieved in order to establish a new structure of the national economy and in what time frame?

• •    how to measure the specific effects of economic growth factors, their effectiveness.

The concept of economic growth, taking into account the qualitative characteristics closer to the concept of "economic development", but not identical to it. Growth is a component of economic development, which is understood as a process that includes periods of growth and decline, quantitative and qualitative changes in the economy. Growth is a positive dynamic of the economy. Decline is the negative dynamics of both the economy as a whole and its individual phases, spheres, sectors, factors and elements.

In the interpretation of economic growth, there are necessarily qualitative and quantitative aspects of this concept. The first reflects the dynamics of changes in the volume of the product produced (public, national), the second - the ability of the economic system to meet growing needs. These parties are necessarily interrelated, and this connection is quite complicated. In itself, the growth of the product, even significant, does not necessarily entail a new quality and improvement of the life of society. For example, the irrational use of raw materials and fuel nullifies the achievement of large growth in the extractive industries and does not provide an increase in the really necessary public products. Also, the increase in military production does not mean raising the standard of living.

At the macroeconomic level, the leading indicators of the quantitative dynamics of economic growth are:

• •    GDP growth;

• •    GDP growth rates per capita;

• •    the growth rate of production of the main sectors of the economy.

One of the most important indicators of economic growth at all times was the productivity of social labor, moreover, the labor of the living. It is measured by the ratio of output (in the scale of the country - the national income) to the costs of living labor:. Labor productivity is the most concentrated, complex characterizes economic growth. Reverse indicator: - labor intensity showing how much society needs to spend labor in order to produce a unit of output.

The indicator characterizes the productivity of capital, or capital productivity. Reverse indicator of it - the capital intensity of production. Both these indicators are quite difficult, because the marginal productivity of capital tends to decrease, and for the production of a unit of goods, therefore, it is necessary to spend more capital.

The indicator is the ratio of the product produced to the costs of natural resources. Characterizes the attitude of a person to natural resources, ie, how efficiently, rationally, limited resources are used. Ensuring economic growth, people are obliged to improve economic processes, characterized by these indicators.

Indicators of economic growth based on the line "production factor -income" are indicators of private, that is, characterizing only two-pole connections. However, there are more synthetic indicators, in which all the above indicators and a number of others are concentrated: the ratio of capital to labor costs. It reflects both technical progress, and concentration of capital, and its centralization, and intensification of production, etc. This indicator is known in its more traditional name - the organic structure of capital. It is the most common expression and productivity. On average, over the past 100 years, the indicator has increased by 1.5-1.7% per year.

The economic strength of the country is characterized by the actual absolute volume of production of material goods. Unlike the economic potential, which characterizes the potential volume of production, economic power is determined by the material goods actually created in the country. The most important indicator of the economic power of the country is the volume of the gross national product produced and the national income.1

Achieving superiority as a result of the economic growth of a country over another country in terms of the absolute volume of production of material goods does not finally solve its impact on world processes. This is ultimately evidenced by the level of economic development.

Used sources:

• 1.    Management of the organization / Ed. AGPorshneva, Z.P. Rumyantseva, N.A. Salomatin. - Moscow: Infra - M, 1999.

• 2.    Fundamentals of commercialization of the results of NPOKR and technology / Comp. N.M. Fresheret. M .: ANH, 1999.

• 3.    Сохадалиев А. М. СОЦИАЛЬНЫЕ И ПРАВОВЫЕ АСПЕКТЫ РАЗВИТИЯ ЭКОНОМИКУ УЗБЕКИСТАНА //Экономика и социум. – 2017. – №. 4. – С. 1301-1304.