Question

What are the principal sources of economic growth in less developed countries?

Answer 1

There are different principal sources of economic growth in less developed countries. The first principal source is the training and development of the human resource and human capital. It will improve the skill level and productivity as well as efficiency will contribute to bring economic growth. The second source is the exploration of the natural resources. It will bring the advantage to the country and international trade can be done using the natural resource. It will bring the economic growth. Further the use of land to produce agricultural goods in combination of the farm mechanization, will also bring the economic growth. The third source is the capital formation and the creation of capital goods. It brings manufacturing capabilities that can cater to the domestic demand as well as overseas demand.