Factors affecting economic growth: empirical evidence from developing countries

7.
 
Conclusion 
Research on key drivers to economic growth among developing countries has been of great 
interest to policymakers, governments, researchers, and investors in the recent past. These 
factors are vital in highlighting activities occurring in developing nations and aid in devising 
policies to foster sustainable growth and development in the economy. 

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10 
This paper sought to establish factors affecting economic activities in 62 developing countries 
from 2010 to 2018. Labour force growth and inflation rates harmed economic growth. 
Although the labour force growth rate was contrary to the prediction, it highlighted inefficiency 
in the labour market, which implies that the policies in the labour market need to be evaluated. 
Moreover, governments should devise monetary and fiscal policies that ensure relatively low 
inflation rates as high inflation rates are detrimental to economic growth. On the other hand, 
natural resource rent and public expenditures were good boosters of economic growth. 
Therefore, investments to maximize economic benefits for the endowed countries were critical 
for their economic development. However, policies to ensure that environmental health was 
maintained and government expenditure did not result from misappropriation of funds towards 
these activities are paramount.
However, due to time constraints and data availability, we omitted other essential indices of 
economic growth, such as education levels and technological advancements. We seek to 
explore these factors further and build on the labour inefficiency as detected in section 5.
 

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11 
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