Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Economic Growth Factors A country's economic growth can be influenced by various factors, both internal and external factors. The following are some of the factors that cause economic growth: 1. Human factor: The human factor is very important in the economic growth of a country. The availability of qualified and educated human resources can increase productivity and innovation in various economic sectors. 2. Infrastructure: Good infrastructure such as roads, bridges, airports and seaports can facilitate transportation and logistics, thereby increasing the efficiency of production and trade. 3. Investment: High investment in various economic sectors can encourage a country's economic growth. This investment can be sourced from within the country or from abroad. 4. Government policies: Government policies in areas such as taxation, trade, investment, and market regulation can affect a country's economic growth. 5. Natural resources: Abundant and well-managed natural resources can increase production productivity and efficiency, thus driving a country's economic growth. 6. Technology: Technological advances can improve production efficiency and enhance a country's competitiveness in the global market. 7. Political security and stability: Good political security and stability can provide a conducive environment for a country's economic growth, including encouraging investment and international trade. 8. Market development: Large and growing market growth can open up new business opportunities and increase demand for products and services, thereby driving a country's economic growth. 9. Globalization: Globalization can open access to global markets for a country's products and services, thereby driving economic growth. 10. Quality of institutions: Good and transparent institutions can increase investor confidence, promote investment and economic growth. 11. Quality of regulation: Good and regular regulation can help increase legal certainty and reduce business costs, thereby increasing efficiency and productivity. 12. Macroeconomic conditions: Stable macroeconomic conditions, such as low inflation, a controlled budget deficit, and a stable exchange rate can provide a conducive environment for economic growth. 13. Economic openness: Economic openness can encourage the exchange of goods and services with other countries, thereby increasing export and import activities, and increasing competitiveness in global markets. 14. Industrial development: Industrial growth and technological development in various economic sectors can increase a country's productivity and competitiveness. These factors are interconnected and influence each other in influencing a country's economic growth. However, keep in mind that sustainable economic growth must pay attention to social, environmental and sustainability aspects, and be able to face complex economic and environmental challenges. Examples of the factors that cause economic growth above are as follows: 1. Human factor: Japan and Singapore have high education and qualified human resources, thus driving rapid economic growth. 2. Infrastructure: China has excellent infrastructure, such as a long highway network, modern airports and efficient seaports, which simplify transportation and logistics, and increase the efficiency of production and trade. 3. Investment: Singapore and Hong Kong are countries with high investment, both from within the country and abroad, thus driving rapid economic growth. 4. Government policies: Government policies in Indonesia, such as the Economic Policy Package Volume III, which focus on regulatory, investment and tax reforms, can improve the investment climate and promote economic growth. 5. Natural resources: Countries such as Saudi Arabia, Russia and Australia have abundant and well-managed natural resources, thereby increasing production productivity and efficiency, and driving economic growth. 6. Technology: The United States, Japan and South Korea are countries with rapid technological advances, thereby increasing production efficiency and increasing competitiveness in the global market. 7. Political security and stability: Canada, Switzerland and Norway are all countries with good political security and stability, thus providing an environment conducive to economic growth. 8. Market development: Countries with large and developing markets such as China, India and the United States can open up new business opportunities and increase demand for products and services, thereby driving economic growth. 9. Globalization: Countries engaged in globalization can take advantage of the benefits of international trade and foreign investment, and acquire new technologies and knowledge that can increase productivity and competitiveness in global markets. 10. Quality of institutions: Singapore and Switzerland are countries with good and transparent institutions, thus encouraging investor confidence and investment, and increasing economic growth. 11. Regulatory quality: Countries such as Denmark, Singapore and New Zealand have good and regular regulations, thereby increasing efficiency and productivity, and providing legal certainty for investors and business actors. 12. Macroeconomic conditions: Countries such as Australia and Canada have stable macroeconomic conditions, such as low inflation, controlled budget deficits, and stable exchange rates, thus providing a conducive environment for economic growth. 13. Economic openness: Singapore and Hong Kong are countries with high levels of economic openness, thus encouraging the exchange of goods and services with other countries, increasing export and import activities, and increasing competitiveness in global markets. 14. Industrial development: South Korea and Taiwan are countries with rapid industrial development and technological development, thereby increasing productivity and competitiveness in the global market. It should be noted that the factors that cause economic growth cannot be viewed separately from each other, but are interrelated and influence each other. For example, good and regular government policies can increase investor confidence and encourage investment, which in turn can increase economic growth. Likewise, qualified human resources can increase production productivity and efficiency, thereby driving faster economic growth.