Which Factors Effect Economic Development?

Economic development is impacted by various factors. The positive economic development has many reasons but these are focused around GDP, which is an abbreviation of Gross Domestic Product. This is what the economy of a country is based around. The Gross Domestic Product of a country is determined by how much produce, in monetary value, a country makes. Economic development is usually boosted by an increase in demand in those products or in some cases a world event taking place in the country, such as the Olympics.
This brings more money into the country and rises the Gross Domestic Product.
Other factors for economic development are social. As the economy grows with the help of the citizens (workers), these workers also need to see the benefit to help the country to continue developing. This includes the increase in private income and better services for the community. A country should have decent relationships to have a growing economy as they will need to trade with others. Therefore strained relationships will impair this growth.
There are also negative effects on economic development. These include natural disasters, war, corruption within government and also problems with produce. These problems in produce can range from crop failure to the production of poor quality products and unfair conditions for workers.
Natural disasters impeded economic growth as the production may take a while to get back to normal and there may be damage in the natural product or the process of making particular products.
War and government corruption can also halt economic development. This will make trading harder between the country and other countries. It will also break relationships and, in the case of war, can cause problems in exporting produce.
There are many more factors but these are the main factors that have both positive and negative effects.

Following are the factors that affect economic development of a country:
- Literacy rate
- Life expectancy
- Poverty rate
- GDP
- Per capita income
- Real National Income.
- Price stability
- Tax base
- Sustainable growth

Basic factors: Raw materials, labour force, inovation and enterprise, power supply, communication and transportation links. These factors are the basis upon which countries can further economic development.  

Internal factors: Government policies (they must favour business e.g. Taxation, regulation, tariffs, taxes/ duty, incentives to help develop business and industry), business culture (for example Japan has a very developed business culture regarding the populations attitude to new ideas and processes and the rate at which new ideas are formed).  

External factors: Geopolitcs, economic globalisation (foreign investment, foreign labour, trade links, sharing of knowledge, financial flow between countries), TNC's and corporations (investment from Transnational Corporations such as macdonalds increases wages of populations by creating jobs.

Outcomes: Economic devleopment has a range of both positive and negative consequences, namely; Bad... Change in the environment (industrialisation means that the beauty of an area can be compromised) change in culture and morals (traditional culture and morals can be lost due to the impacts of TNC's and inflow of different people into the area e.g. Tourism) There is often a greater inequality gap as a small number become very rich and the poor only gain a small profit (this can cuase resentment within a country as the distribution of wealth is unbalanced. An unbalanced economy can also cause a great boom in industry which if often very unstable causing a slump or depression in an economy Good.... Improvement of quality of life (indicators of which are, general happiness, health, friends and family, education, income and affluence, job security, clean area to live in, eectricity running water ect.) improvement in standars of living and income. It can often lead to more democracy within a country.

Poverty

Good leader, good management, good monetary policy and external policy are the four factors of economic growth.