Types and factors of economic growth.

Accordingly allocate two types of economic growth: extensive and intensive. The economic growth caused by increase of quantity of resources, simple addition of factors, represents extensive type of economic growth. The economic growth connected with perfection of quality of resources, use of achievements of scientific and technical progress is an intensive type of growth.

The Factors of Growth.The output (income) Y is connected in the growth theory with the quality and quantity of the used resources (or factors of production - capital K and labor L), and also with the technology. There are two general components of the growth's factors: the extensive one (connected with the increase of resources' inputs) and the intensive one (connected with the increase in their return). The latter is related not only to resources' productivity but to their effective allocation. The works of E.Denison give an approach of estimation the shares of factors' contribution into the growth rates of national income. In the 1929-1982 in USA these shares were:

- increase in quantity of labor 32%;

- increase in quantity of capital 19%;

- technological advance 28%;

- education and training 14%;

- economies of scale 9%;

- improved resource allocation 8%;

- legal-human environment and other -9%.