Factors of Economic Growth - Results from an Empirical Study

This article relies on the review of the most recent and important empirical studies devoted to the explanation of the factors of economic growth. The main aim of the article is to identify those factors that might explain the differences in growth rates of individual countries. Empirical results suggest that the most important determinants of economic growth are: a) physical capital investments (especially in infrastructure), b) human capital investment (health and education expenditure), c) financial sector development, d) international trade, government sector (possibly small), f) economic freedom, g) political stability, absence of the high inequalities in incomes and personal property.