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What drives economic development?

What drives economic development?

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Answer #1

Main Factors that drives economic development are:

1. Human capital :  the mix of skills and occupations becomes increasingly important to the economic well-being of regions, quality-of-life factors increasingly influence economic development.

2. Investment : It continues the cycle of growth that also influence economic development. It  creates new jobs, which increase income of people, which leads to greater demand for goods and services and this way continue the economic growth ( i.e, development).

3. Education & Health: Education& health increases the well being, productivity and standard of living which drive economic development.

4. Specialization & trade : Regions benefit from trade to the extent that they are able to focus on the types of production best suited to local inputs, including knowledge, skill, technology, natural resources and the base of strong businesses and supplier firms.

5.Infrastructure : Improvement in infrastructure also shows the economic development level.

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