Production, cause of economic growth

• Author: Albulena Mavraj
• Position: University of Pristina, Journalist ? Epoka e Re
• Pages: 93-97

ISSN 2410-759X Balkan Journal of Interdisciplinary Research Special Issue No 1

Acces online at www.iipccl.org IIPCCL Publishing, Tirana-Albania June 2015

93

Production, cause of economic growth

Msc. Ecc. Albulena Mavraj

University of Pristina

Journalist – Epoka e Re

Abstract

e development of productivity is one of the most appropriate steps of macroeconomics. is

development could directly aect GDP growth, reduce unemployment rate and in reducing

the rate of poverty, including the exploration of natural goods of a country. e activity of this

productivity is very important, especially when it comes to countries in transition. ese countries

do not have their own opportunity to create the necessary capital nor the experience of the

market economy, therefore needed to stimulate the contribution of the state and international

mechanisms, for economic development and poverty alleviation. To illustrate this with examples,

we have as concrete cases Kosovo, which cannot be properly introduce resources that possess

comparative advantage. Our state aer the war faces high trade imbalances. Otherwise, to

develop the manufacturing sector, transition states must implement policies favorable to the

manufacturing sector, by giving the adequate priority. Although there have been numerous

statements to strengthen the manufacturing sector in Kosovo, in the meantime it requested the

assistance of Chambers of Commerce and Business Alliance. is application also led to major

electoral promises and governmental, but again the manufacturing sector remained the same, as

it was for years, undeveloped. erefore, this sector entails the development of various factors, of

which increasingly depends on the development of the economy.

Keywords: Production, Productivity, Directly, Economic growth.

Entry

Production is among the most important indicators that can inuence economic

growth, the generation of new employment and capacity utilization exploration of a

country. Manufacturing enterprises by introducing available production factors make

the dierence of economic growth, but the role of productivity is greater in transition

countries which are rich in various resources and workforce have cheaper cost, but lacking

manufacturing capacity. In this context, the objective of this study will be an assessment

of the manufacturing sector and productivity, in order to highlight the role and its impact

on economic growth. In this paper will be presented concrete examples of countries that

have strengthened the manufacturing sector through which they managed to have a direct

impact on economic growth.

Role of production on economic growth

Production is the process of creation or transformation of material goods and useful

services through the combined use of human labor, and the elements of nature and of

capital (which comprise the three main factors of production). Whereas, productivity is

the amount of output that results from the use of a unit of a factor or a unit of all the factors