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After detailed analysis of all the growth theories that are present, it can be stated that each of these theories have to be supported by empirical data. As per details provided by economists it can be stated that for getting faster economic growth, an economy needs to be technologically advanced as well as accumulation of physical capital has to be made. It also shows the rate of growth of an economy as well as trade at an international level.

To achieve this level of economic growth, it is imperative that certain steps should be followed.

  • There should be a higher rate of saving on a personal note
  • The quality of education that is imparted in a particular country or economy needs to be improved
  • The developing nations need to be provided with external help.
  • The international trade barriers that have been inserted for political reasons need to be removed and free flow of trade has should be allowed
  • As one of the main aspects, research and development amounting to technological invention has to be increased.

A detailed analysis of all these steps needs to be done to get a detailed view of the situation that a particular economy has to deal with and should look forth to in case that economy wishes to stay at the top.

  1. Higher rates of saving:

Correct usage of finances is one of the most important factors that helps in economic growth stimulation of a country. Since a regular format is easier to understand, therefore the explanation can be given as: greater savings result in greater investment of savings and finally this helps in increasing economic growth of the economy.

In case of East Asian countries, both rates of saving and investment are high, which results in them having a greater economic growth. This is completely different in case of South African countries where both rates of saving and investment are low resulting in lower economic growth.

One of the easiest ways to increase savings is incentives on tax.

  1. Encouraging international trade:

Rather than providing economic aid, the factor that helps in ensuring that developing countries get their due in the market is via reduction in trade barriers by developed nations. When these barriers are dropped it can be found that every country can put forth their specialized goods and then help in improving their respective economic conditions.

  1. Encourage research and development:

It is very important for an economy ensure that it has a strong research and development team that helps in ensuring that technological advancement of the economy. It is courtesy to this that a country’s total advancement can be measured.

  1. Quality of education has to be improved:

It is only via correct education that a country can develop in the correct path. When its residents have a correct path to follow, it becomes easier to ensure that certain scientific developments can be incorporated and a developing country can reach the status of a developed country.

  1. Aid to developing nations:

To ensure that the global economy functions in a proper manner, it is essential that all the economies of the world should function in a standard format. Therefore, it is a moral duty of the developed nations to provide ample aid to the developing countries to maintain a status at global level.

Thus, following of these steps will result in achieving of faster growth rate.

 

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