The Effect of Social Factors to Economic Growth (2024)

FAQs

What social factors affect economic growth? ›

By conducting correlation and regression analyses, the study highlights that social factors such as population, health, education, development, labor force, environment, military, and geography have significant relationships and effect with the economic growth indicators such as GDP, GDP growth, GDP-per-capita, GNI, ...

Socioeconomic factors affect one's ability to engage in health activities, afford medical care and housing, and manage stress. For example, employment provides income, which enables access to housing, education, childcare, food, medical care, and other needs.

The social factor relates to the features that can change when individuals have to work or perform on their own or with others. It also concerns areas of conduct while performing, the effect of culture and the environment on the performance. This includes cooperation, communication and etiquette.

Economic factors affecting growth and development are: natural resources, capital formation, technological progress, entrepreneurship, human resource development, population growth and social overheads.

Karl Marx is the chief architect of the economic theory of social change. He believes that social change is basically the result of economic factors. The mode of production determines the social, cultural, religious and the political aspect of society.

Socio-cultural factors influence development by providing it with a social context. The various socio-cultural consequences that a child meets with are learnt by him/her and thus, a child develops a personality which is influenced by his/her experiences.

Socioeconomic impacts are typically defined as impacts to a community's self-definition, culture and customs, language, and demographic characteristics; and related changes to its economic base, main industries, employment patterns, and infrastructure.

Many economic factors, such as unemployment, exchange rates, inflation, wages, and supply and demand, typically impact how businesses make a profit and increase their efficiency. Companies that study these factors can usually predict consumer spending and plan their marketing efforts to improve performance.

Economics of Social Issues applies economic principles to study contemporary social issues, including: the distribution of wealth and income, poverty and inequality, gender differences, altruism, crime and corruption, gambling, and housing.

The link between economic growth and social development is that both capture some aspects of well-being. The economic measure of GDP focuses on households' financial abilities; while social indicators are able to reflect public services, like education and health, and how those change in the development process.

How does social development lead to economic development? ›

This paper argues that social factors can contribute to sustainable economic growth because social development leads to healthy, educated and productive citizens who can bring economic contributions.

In a capitalist system, economic growth increases prosperity and improves living standards but generates social and economic inequality, while in a socialist system the economy reduces social and economic inequality but generates less economic growth.

Employment effects – sustained growth stimulates jobs and contributes to lower unemployment rates which is turn helps to reduce income inequality. Fiscal dividend – higher economic growth will raise tax revenues and reduce government spending on unemployment & poverty related welfare benefits.

The four main factors of economic growth are land, labor, capital, and entrepreneurship.

Economic factors include economic growth, percentage of unemployment, inflation, interest and exchange rates, and commodity (oil, steel, gold, etc) prices. These affect the discretionary income and purchasing power of households and organisations alike.

Social and economic factors include factors such as income, education, employment, community safety and social support. The choices that are available in a community are impacted by social and economic factors. These choices include our abilities to afford medical care and housing and to manage stress.

Socioeconomic status (SES) is the social and financial level of an individual in society. Socioeconomic status impacts a young child's cognitive, language, social, physical, and emotional development. Cognitive refers to the ability to think and understand different concepts and processes.

Health, education, employment and quality of life are some important indicators that directly influence social development and governments frequently use them in policy formulation for their citizens' welfare. People's participation and accountability are both essential for social development of any society.