The extensive path of economic development is characterized by an increase in the social product due to an increase in the number of production factors. For this, additional resources, land, capital are attracted. At the same time, the technological basis of production is not subject to change. So, for example, cultivating virgin lands to get more grain crops or attracting more workers to build power plants are considered extensive development paths.
Achievement of growth in production is carried out due to a quantitative increase in the number and qualification of employees. Equal importance is given to increasing the capacity of the enterprise by increasing the number of equipment.
An extensive development path is inherent in organizations that expand production through the construction of new enterprises. Thus, the geographical factor is used. A typical enterprise that has an extensive development path is a fast food chain. In this case, the market is conquered by geographical expansion and the manufacture of a huge number of cheap products.
The extensive path of development is characterized by a relatively uniform increase in the ratio of its factors. The production maximum mainly depends on the availability and condition of resources, especially capital and labor costs. At the same time, scientific and technological progress has a negligible effect on the process. In these conditions, the enterprise becomes dependent on the situation that develops in the market of production factors.
In an extensive way, some side effects are seen as a reduction in unemployment. This is mainly achieved through the hiring of a significant number of employees. However, the reduction in unemployment is a temporary phenomenon in this case. This is largely due to the inability to maintain full annual employment. An important factor is that employees generally do not have the necessary qualifications.
Thus, the extensive path is characterized by a stagnant character, which is associated with the absence of the influence of technological progress, and the wear (both physical and moral) of production assets occurs.
At the same time, as experts say, enterprises developing along an extensive path are mostly dependent on external factors. So, for example, such an enterprise is significantly affected by government policy, in particular in the field of investment and tax revenues.
Thus, development along an extensive path is completely unacceptable for enterprises in modern market conditions. However, along with this, the use of certain factors allows one to obtain high results in certain situations. An example is the oil-rich states, which have reached a high income level solely due to the reserves of this raw material.
It should be noted that the extensive path was the basis for subsequent economic development, became the basis for the emergence of a new intensive type. At the same time, in the conditions of modern market relations it is difficult to single out one or another type. As practice shows, the most beneficial use of their complex.
Extensive development is characteristic of various spheres of social life. In particular, its use in a certain period was noted in the pedagogical sector. However, it should be noted that the extensive path of development of education today is changing to an intensive one. In other words, earlier emphasis was placed more on the awareness and expansion of student knowledge. Today, the main focus is the formation of abilities and skills, the development of innovative thinking.