Factors Determining Economic Growth: Analysis and Implications for the Global Economy

Abstract

Economic growth is one of the main indicators in assessing the progress of a country and its impact on the global economy. This study aims to analyze the factors that influence economic growth, both from the internal side (such as domestic economic policies, investment, and human resources) and external (such as international trade, technology, and globalization). Global economic growth is greatly influenced by integration between countries in terms of trade, investment, and capital flows. Countries that are able to optimize these factors have a greater opportunity to improve the level of welfare of their people and reduce the development gap between countries. The economic growth model applied in this study combines classical and modern theories, and uses quantitative analysis methods such as linear regression to assess the relationship between economic variables and growth. The results of the study indicate that domestic and foreign investment have a significant influence on economic growth. In addition, the quality of the workforce and government policies also play an important role in creating a conducive economic climate. Technology and innovation are key factors in increasing a country's productivity and competitiveness in the global market. The implications of this study emphasize the importance of economic policies that support global economic integration and encourage increased investment and adoption of new technologies. Countries also need to pay attention to external factors that affect the domestic economy, such as international trade policies and capital flows. In a global context, international collaboration and global economic stability are important factors in creating sustainable and inclusive growth for the whole world.