DETERMINATION OF THE ECONOMIC GROWTH RATES BY THE GROWTH QUALITY

Nada Trivic, Viktorija Petrov

Faculty of Economics in Subotica, University of Novi Sad, Subotica, Serbia

Each specific economic growth rate indicates relevant characteristics of current development, but also reflects the chances for achieving satisfactory future growth rate. Therefore, it is about a general interdependence and law of growth rate convergence. The main objective of this paper is to show that substandard growth could, sooner or later, result in the economic slowdown, and that the temporary growth acceleration can be achieved at the expense of the long-term growth rate. Scientific instruments applicable for achieving this research goal are the method of scientific analysis, historical method and the method of comparative analysis, as well as a number of techniques in the form of modern information resources. A key result of this paper is that all growth rates of endogenous production factors, without increasing the efficiency of resource use, are converging to the arithmetic mean of exogenous production factors growth rates. Therefore, the growth rate can be significantly increased at the expense of its quality and the substandard growth contains the „germs of its own limiting”.

Keywords: growth rate, convergence, efficiency, growth quality, growth rates interdependence

JEL Classification: C10, D63, O47