Economic policies are essential for growth. For example, countries that maintain open markets for both domestic and international trade are generally more successful than more closed economies where the government actively intervenes in markets.
Determining factors for economic growth
Political and economic institutions are also determining factors. For example, countries with governments governed by written constitutions, independent judicial systems that enforce contracts, low bureaucratic costs, and economic stability.
Certain structural characteristics also affect growth. Geography affects the costs of trade, the productivity of the labor force, and the returns to agriculture, among other factors.