Over the past century, many concepts of economic growth have been developed, with the main emphasis being placed on identifying various aspects of the supply system itself and its individual factors. Economic growth is an increase in the country's production system , expressed in an increase in GDP or net product in the enterprise. In some cases, it can take place without significant changes in production systems, in others it can be accompanied by significant improvements in the structure and functions of the entire production system.
The economic growth of the first type is characterized by a significant increase in economic resources - the production of new roads, enterprises, and power plants. This type has a name - extensive economic growth. The second type of economic growth is called intensive growth, in this case, GDP growth is ahead of growth in the increase in the amount of available economic resources. In turn, intensive economic growth is one of the most important components of a prosperous society, however, the transition to it is extremely difficult.
Ways to influence economic growth are direct and indirect factors. At the same time, factors that create the possibility of growth are called direct. Direct offer factors:
- quality and quantity of natural resources;
- quality and quantity of labor resources;
- technology and organization of production;
- volume of fixed capital;
- development of entrepreneurial abilities and their level in modern society.
Indirect factors include conditions that allow the realization of possible prerequisites for economic growth. Indirect are called demand and distribution factors:
- tax climate in the economy;
- decrease in the degree of monopolization of the market;
- the effectiveness of the credit and banking system;
- growth in consumer, government and investment spending;
- redistribution of industrial resources in the economy;
- expansion of export supplies;
- current income distribution system.
At the same time, extensive economic growth is considered the simplest type of growth, it provides a fairly easy way to increase the pace of economic development and allows you to achieve an increase in the country's economic potential in the shortest possible time. Extensive economic growth almost always precedes intensive growth. These are the most important indicators of economic growth, they are closely intertwined and is of particular importance for the full realization of production potential.
To date, there are two theories more or less explaining indicators of economic growth: neo-Keynesian and neoclassical. Both theories of economic growth have radically different concepts regarding the economic situation in the country. Neoclassicists consider the market a mechanism capable of solving all existing problems in the country. Keynesians, in turn, argue that the market mechanism is extremely slow and can take the economy to a new level very soon.
Keynesian theory was followed by the governments of many states in the post-war period, but as economic growth moved to a new level, the negative aspects of stimulating aggregate demand were discovered . The offer could not keep up with the greatly overestimated demand, prices began to rise and inflation became rampant. Therefore, the eighties were marked by the fact that most countries turned their attention to the position of the neoclassical.
Judging by the fact that the problems of economic development and growth are becoming increasingly important in Russia, in the future it is quite possible that completely new effective directions for the development of production will flourish, higher economic growth will be achieved, and as a result, the material welfare of Russian citizens will increase.