What factors affect growth natural resources it

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What Factors Affect Growth? Natural Resources It appears that natural resources are neither a sufficient not a necessary factor for growth: Nations rich in natural resources are not guaranteed economic growth, where as nations poor in natural resources may grow. Having said all this, it is still more likely for a nation rich in natural resources to experience growth, ceteris paribus. Capital Formation This include two types of capital: Physical and human. Physical capital, such as a tractor or a machine, and human capital, such as knowledge and skills increase the ability of an individual to produce (that is, there is a predictable relationship between capital formation and labor productivity.) Technological Advances Technological advances make it possible to obtain more output from the same amount of resources. Property Right Structure Property rights refers to the range of laws, rules, and regulations that define right over the use and transfer of resources. Some economist have argued that per-capita real econ growth first appeared in those areas where a system of institution and property rights had evolved that encouraged individuals to direct their human capital and energy to effective economic projects.
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