Factors affecting economic growth: empirical evidence from developing countries

Abstract

The question around factors affecting economic growth in developing nations is widely debated as it influences the policies to promote economic welfare. This paper, therefore, determines the factors influencing economic growth in developing countries. By estimating a fixed-effect model with a panel dataset for 62 developing countries from 2010 to 2018, the study found that government spending and natural resource rents have a favourable impact on per capita GDP growth. In contrast, rising labour force participation and inflation stifle economic growth in these countries.