Factors influencing the economic growth of countries depending on the stage of their development

Abstract

This study examines the economic growth of countries from 2006 to 2018. It is a result of sustainable and intensive development of production, technology, and improvement of living conditions in the country. The main purpose of the study is to understand what the barriers to the transfer of countries to a higher level of development are, based on such factors as Infrastructure, Human Capital, Business Environment, Institutional System, Financial System and Macroeconomic indicators. The work is based on a sample of 109 countries studied across 431 indicators. The study uses approaches such as "Min-Max" analysis, which aimed to find indicators that differed significantly between groups; the "Average" analysis, will provide a clear indication of the average across factors and countries from 2006 to 2018; and the "1.15" methodology outputs indicators that have improved by more than 15% in 2018 compared to 2006. Through these approaches, we expect to see a clear difference in development between groups of countries. The result of this paper is that Business Environment, and Financial System and Macroeconomic indicators are important for the transition from low income to lower-middle income group. Further, the country's transition from lower-middle income to upper-middle income is determined by the development of the Infrastructure, Human Capital, Business Environment, Institutional System, and Financial System indicators. And finally, the transition from the upper-middle income group to the high-income group involves the improvement of such indicators as Financial System, Infrastructure, and Human Capital. By developing these factors, the country will be able to overcome the barrier and move to a new stage of development.