Intended to be used as part of a presentation and not a stand alone product.

1. Determinants of Economic Growth

2. Like China, Dubai has
experienced significant
growth. In this
presentation we will briefly
examine the factors of
economic growth.

3. What Determines Economic Growth
• Increases in the quantity and quality of natural resources
• Increases in the quantity and quality of human resources
• Per-Worker Production Function
• Capital Goods
• Technology
• Demand Side of Economic Growth
• Efficiency

4. Increase in Quantity of Natural Resources
Natural resources are used to produce goods
and services. The more natural resources we
have the more we are able to produce.

5. Increase in Quantity of Natural Resources
How do we get more natural resources?
• We can discover more
• Conservation
Exploring for petroleum
Conserving Resources

6. Fracking is a new drilling technique that allows us to get more oil from
wells that were not productive using older techniques.

7. Increase in Quality of Human Resources
Human resources, or human capital, are the knowledge and
skills that make a person productive.

8. Increase in Quality of Human Resources
Human capital involves improvements in workers (learning new
skills) that will increase output. The more productive a worker is
the more they will add to output.
Human capital is improved by:
On the Job Training
Education
On the Job Training

9. Formal education or other types of training will increase the
productivity of the workforce.

10. Increase in Quantity and Quality of Capital
The more capital that workers have access to, the more goods and services
that can be produced.
Scythe allowed 3 acres a day Reaper allowed 15 acres a day Combine allows 100 acres a day

11. Per-Worker Production Function – impact of capital
The per-worker production function
shows the relationship between the
amount of capital per worker and the
output per worker.
Any point on the production function
shows how much output per worker
can be produced for a given amount of
capital per worker
When there are k units of capital per
worker, average output per worker in
the economy is y.
The per-worker production function
basically shows that as workers are
given capital, they are able to produce
more – too a point
k
y
y shows output per worker
Production Function
Capital per worker

12. Technology
Technology is a huge drive in productivity and thus economic growth.
Technology allows workers to produce more, even with the same amount of
physical and human capital.
The use of google glass can allow workers to be more productive.

13. Demand Side of Economic Growth
In order for economic growth to occur, there must be a
demand for the goods and services produced.

14. Productive Efficiency
The last ingredient necessary for economic growth is productive
efficiency. That is we don’t waste the resources we have.