Determinants of Economic Growth

Abstract

Over the last two to three decades a wide range of studies has inves﬒ gated the determinants of economic growth. Using diff ering conceptual and methodological approaches, these studies have placed emphasis on a number of explanatory parameters and off ered various insights to the process of economic growth. The current paper draws on a ques﬒ onnaire survey addressed to various experts (academics, policy makers and business people), to iden﬒ fy the factors that either support or inhibit growth poten﬒ al and to assess their degree of signifi cance. A number of points emerge. First, that alongside conven﬒ onal determinants, it is also the poli﬒ cal and ins﬒ tu﬒ onal aspects of an economy that play an important role in advancing growth dynamics. Second, determinants infl uence at a diff erent degree each economy depending on the level of development achieved. As such, there are clear indica﬒ ons that policy priori﬒ es should be diff erent between developed and developing countries. Third, despite the previous point, there are some basic elements which are deemed important for economic growth independent of the level of development an area exhibits.