The Optimal Level and Impact of Internal Factors on Growth

Download or read book The Optimal Level and Impact of Internal Factors on Growth written by Kui-Wai Li and published by . This book was released on 2015 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically uses data from the world economy to show that performance of domestic factors are equally important to external factors when comes to growth. Various external and domestic factors are used to construct two separate indices and the principal component method is applied in the analysis. The empirical results show that given a different level of performance in the economy's external factors, a higher performance in the internal factors will produce a higher growth rate. When the performance of an economy's internal factors is extremely low, it would be appropriate for that economy first to improve its internal factors.