The main determinants affecting economic growth

• Author: Boldeanu F.T., Constantinescu L.
• Pages: 329-338

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 8 (57) No. 2 - 2015

The main determinants affecting economic growth

Florin Teodor BOLDEANU1, Liliana CONSTANTINESCU2

Abstract: Growth theories highlight the evolution and trends in economic thought that

shaped the way economic growth is perceived. From the early works of Adam Smith and

Malthus to the present day researchers have tried to find the most important determinates

that influence growth by formulating new and improved theories and models. In this article

we try to offer our point of view in the evolution of the main factors that have an impact on

economic growth. There is still not a consensus on the key determinants of growth and an

all-encompassing model that includes all the influences has not yet been elaborated.

Key-words: economic growth, public expenditure, growth theory

1. Introduction

Economic growth theories and models highlight the different ways in which the

present economic activity can have an influence on future economic developments

and can also identify sources that may lead to continued economic growth.

Researchers and economists reaffirm the need for economic growth for the evolution

and well been of the human race. The economic growth theories have evolved over

time depending on the period and on the dynamics of economy. Also improvements

in mathematical and statistical tools have had a significant impact in formulating

new concepts.

Why do we need economic growth? What are the main factors that foster

growth? Many researchers, economists and Nobel Prize winners tried to answer

these questions. Economic growth can be considered a main factor in the well being

and prosperity of billions of people. Industrialization and advances in technology

has left a gap between developed countries and poorer ones. For example now, in

the 21st century the GDP/capita of many poorer countries is lower than the GDP per

capita of Europe in the 19th century. Economic growth was a pinnacle of the 20th

century that insured the development of the Western World and improved for many

people the leaving standards.

1 Lucian Blaga University of Sibiu, boldeanuflorinteodor@yahoo.com

2 Christian University, Bucharest, lilianauroracon@yahoo.com