See the below image for the 4 factors of economic growth diagram. Natural Resources, Human Capital, Capital Goods, & Entrepreneurship • There are 4 factors of production that influence economic growth within a country: 1. Natural Resources available 2. Investment in Human Capital 3. Investment in Capital Goods 4.
Supply of Land and Other Natural Resources 2. Capital Formation 3. Human Capital 4. Technological Progress and Economic Growth. Factor # 1. Supply of Land and Other Natural Resources: The quantity and quality of natural resources play a vital role in the economic development of a country.
For example, in a given year, the telecommunication sector of a country marked a significant contribution to economic growth, while the mining sector did not perform well in terms of the country’s economic growth. Following are some of the important factors that affect the economic growth of a country: