Abstract:
This study examines the economic growth of countries from 2006 to 2018. It is a
result of sustainable and intensive development of production, technology, and improvement
of living conditions in the country. The main purpose of the study is to understand what the
barriers to the transfer of countries to a higher level of development are, based on such
factors as Infrastructure, Human Capital, Business Environment, Institutional System,
Financial System and Macroeconomic indicators.
The work is based on a sample of 109 countries studied across 431 indicators. The
study uses approaches such as "Min-Max" analysis, which aimed to find indicators that
differed significantly between groups; the "Average" analysis, will provide a clear indication
of the average across factors and countries from 2006 to 2018; and the "1.15" methodology
outputs indicators that have improved by more than 15% in 2018 compared to 2006. Through
these approaches, we expect to see a clear difference in development between groups of
countries.
The result of this paper is that Business Environment, and Financial System and
Macroeconomic indicators are important for the transition from low income to lower-middle
income group. Further, the country's transition from lower-middle income to upper-middle
income is determined by the development of the Infrastructure, Human Capital, Business
Environment, Institutional System, and Financial System indicators. And finally, the
transition from the upper-middle income group to the high-income group involves the
improvement of such indicators as Financial System, Infrastructure, and Human Capital. By
developing these factors, the country will be able to overcome the barrier and move to a new
stage of development.
