Socio-economic factors impacting economic growth

Abstract

It is a common perception that the economic growth of a country is greatly influenced by the social and economic factors of the country. Factors like corruption, political stability, employment participation rate are related to per capital GDP. Through this research paper I plan to demonstrate the relationship that these indicators have on economic growth of a country and will try to probe further into any disparity that might exist between developed countries and rest of the world. Using a combination of simple regression analysis as well as multiple regression analysis this paper looks at the impact of different social and economic factors on economic growth. It is to be noted that there is a causal relationship between a corruption and the other indicators discussed in this paper. The research approach used in this paper includes gathering the most recent available data from publicly available data sources for each of the economic indicators, followed by a simple regression model for each variable pair. An attempt has been made to combine all the economic indicators discussed in this paper and build a multivariate regression to look at the inter-relationship.