For a country to achieve economic growth it has to have certain factors that will boost that country’s

economy and those factors are well known as determinants of economic growth. According to Barro
(2004), determinants of economic growth in developing countries refer to the factors that contribute to
the increase in the production of goods and services in these countries over a specific period. This
factors are critical in promoting sustainable economic growth and improving the standard of living of the
population. This essay aims to discuss the determinants of economic growth in developing countries.

The first determinant is on capital accumulation. According to Garg (2024) capital accumulation refers to
the appreciation in the value of the amount invested in any asset, whether tangible or intangible. One
fundamental aspect of capital accumulation is its impact on productivity investments in physical capital,
such as machinery and infrastructure, enhances the efficiency of production processes. This in turn leads
to increased output and higher economic growth. As argued by Hucas (), an increase in human capital
leads to a more knowledgeable and skilled workforce, capable of embracing technological
advancements and contributing to overall economic growth. Developing countries that prioritize
education and skill enhancement initiatives tend to experience higher rates of economic development,
as demonstrated by success stories of countries like south Korea and Singapore. Foreign Direct
Investments (FDI) is another avenue through which capital accumulation positively influences economic
growth in developing nations. A study by Alfaro (), suggests that FDI brings not only financial capital but
also technology, managerial expertise, and access to global markets. This infusion of external capital
contributes to the development of domestic industries and promoting economic growth and fostering a
more competitive and dynamic economy.

The other determinant is effective trade and political stability. According to Harbeler (1988), in the
traditional view four vital points maybe be identified when examining the benefits of trade for
participating LDCs. First, trade is the means and vehicle for the dissemination of technological
knowledge, the transmission of ideas, the importation of know-how skills, and managerial talent, and
entrepreneurship, second, trade is also a vehicle for the international movement of capital especially
from the developed to the underdeveloped countries. Finally, free international trade is the best anti-
monopoly policy and the best guarantee for maintaining free competition. Claude (1975) describes
oolitical stability as a situation characterized by the preservation of an intact and smoothly functioning
government or political system, avoiding significant disruption or changes over an extended period.
Political stability signifies is essential for a nation’s development and economic growth among others.
Political stability provides an environment in which businesses can operate and invest with confidence
leading to economic growth. One example of how political stability can impact economic growth is the
case of Botswana. Botswana has enjoyed political stability since its independence in 1966, and as a
result, the country has experienced strong economic growth. The government has been able to
implement policies that have encouraged investment and led to diversification of the economy.

Moving forward to the next point which is Infrastructure, William. E. (2001) notes that infrastructure is
the basic physical systems and structures that a country needs to function properly. This includes things
like roads, bridges, railways, airports, and energy and communication systems. Many governments,
faced with competition priorities or difficult physical situation, simply cannot allocate the resources
needed to reach desirable levels of access or quality. Although, high-quality infrastructure can promote
economic growth of developing economies in several ways. For instance, high-quality roads, can reduce
the cost and time of transporting goods and people, making it easier to get things to market and to
connect people to job opportunities. This can boost productivity, increase trade, and encourage
investment. Transportation infrastructure can improve the efficiency of businesses by reducing the time
and cost of getting supplies and inputs to factories. Better roads and public transit make it easier for
workers to commute to work, and can connect businesses to a larger pool of potential employees. Good
infrastructure can also have a big impact on the energy sector, for instance, high-quality power grids and
energy transmission systems can make energy more reliable and affordable for businesses and
consumers. Energy infrastructure can also help to increase the use of renewable energy, which can
reduce the environmental impact of energy use. Good energy infrastructure can also make it easier to
access other infrastructure, like water and telecommunications systems. This can further boost
economic growth by improving the quality of life for people and businesses.

Apart from that, labour force is another determinant that contributes to economic growth. According to
Investopidia labour force is defined as the portion of a population employed and not employed. Labour
force is the sum of the employed plus the unemployed, and the unemployed rate is the number of
unemployed divided by the number in the labour. The importance of labour if it was no there would be
no production of goods and services. So labour force is an essential determinant of the economy.
“labour is the key input in the production of good and services and, is therefore a critical determinant of
economic growth.” One of the key points is job creation. Job creation leads to higher rate of innovation
and productivity, and increases the GDP. “Creating jobs helps the economy by GDP. When an individual
is employed, they are paid by their employers.” This results in them having money to spend in variety of
areas. The more an individual spends the more the demand increases.

the last determinant is on technology. According to Bergson (2023) technology involves organised ways
of doing things. It covers intended and unintended interactions between products and people and
systems who make them, use them or are affected by them through various processes. Changes in
technology leads to an increase in productivity of labour, capital and other factors of production.
Innovation may be used synonymously with invention or may refer to discovering a new way in which to
use or apply existing technology. There are five main attributes of innovative technology: relative
advantage, compatibility, complexity, observability and diffusion. According to Robinsons Technology
qualities access to knowledge through online courses, interactive learning platforms and digital libraries
therefore improving human capital. Through technologies like mobile learning apps and educational
videos, students in remote areas can access quality education that may not be available locally.

In conclusion the determinants of economic growth play a crucial role in a country’s economic
development, without the discussed determinants, it is difficult for an economy to experience sustained
growth. At the same time economic growth is essential for a country’s long term prosperity and for
improving the life of its citizens therefore it is advisable for the policy makers to continue to prioritize
this factors in order to ensure a bright future of the economy.