Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Industrial Development Factors In Economic Growth Industrial development is one of the factors that influence a country's economic growth. This is related to the ability of a country to produce goods and services in sufficient quantities to meet domestic needs and for export abroad. Industrial development also includes technological advances in the production process and product quality. Industrial development usually occurs due to incoming investment from within the country and abroad, as well as support from the government in terms of policies and infrastructure. A growing industry can also create more jobs and increase people's income. However, industrial development also has negative impacts such as pollution and environmental damage, social inequality, and dependence on certain technologies and natural resources. Therefore, good and sustainable industrial management is needed to minimize negative impacts and maximize the benefits generated. Industrial development is an important factor in economic growth because it can increase a country's productivity, innovation and competitiveness. This can be seen from the growth of key industries such as manufacturing, agriculture, mining and the service sector. Industrial development can be achieved by investing in the development of quality infrastructure, technology and workforce. In addition, government policies that support industrial development and protection of intellectual property rights can also affect a country's industrial growth. Industrial development can increase production and create jobs, which in turn can increase purchasing power and stimulate other economic sectors. Therefore, the government and the private sector must work together in developing strategic industries and creating an environment that supports sustainable industrial growth. Industrial development is one of the important factors in economic growth. This factor refers to an increase in economic activity in the industrial sector. Industrial development can be seen from various aspects, such as the number of developing industries, the quality of products produced, the technology used, and so on. Good industrial development will have a positive impact on economic growth because it can increase productivity, create jobs, and increase people's income. Some of the factors that influence industrial development include: 1. Availability of quality human resources: Quality human resources is very important in building a thriving industry. A qualified workforce will be able to create innovations and improve the quality of the products produced. 2. Developing technology: Technological developments also greatly affect the development of the industry. Sophisticated technology will facilitate production and increase production efficiency, thereby reducing production costs and increasing profits. 3. Availability of capital and infrastructure: Availability of adequate capital and infrastructure is also very important in building a thriving industry. Adequate capital will facilitate business development, while adequate infrastructure will facilitate goods transportation and product distribution. 4. Supportive government policies: Government policies that support industrial development, such as tax incentives and reduced production costs, will encourage industrial growth. 5. Changes in people's lifestyles: Changes in people's lifestyles can also affect industrial development. If people want higher quality and more efficient products, the industry will try to fulfill this demand by developing better products. 6. Market competition: Healthy market competition can also affect the development of the industry. Healthy competition will encourage the industry to continue to develop products and improve the quality of the products it produces. 7. Global developments: Global developments can also affect industrial developments. The openness of the global market will provide an opportunity for the industry to market its products to the global market and increase the competitiveness of the industry globally. Some of the characteristics of industrial development factors in economic growth are as follows: 1. The development of the industrial sector: The industrial development factor in which the industrial sector is growing rapidly, with many industrial businesses being established, both small, medium and large scale. 2. Increased production: Industrial development can be measured by increasing production, where the higher the industrial production produced, the better the economic growth will be. 3. Product quality improvement: Industrial development is also followed by product quality improvement, so as to increase product competitiveness in the market, both locally and internationally. 4. Absorption of manpower: In the development of industry, large employment opportunities can be created, so that it can absorb labor significantly. 5. Increase in added value: In industry, each stage of production has its own added value, which can increase the added value of products and also the industry's contribution to a country's economy.