What are the changes in the supply of productive factors that contribute to economic development?
Introducing new and better production techniques, which incorporates environmental innovations.
Discovering additional resources.
Accumulation of capital (real productive investment).
Population growth.
Improvement of human resource qualifications.
Institutional and productive organization improvements in the territory or country.
The changes in the supply of productive factors are related to the evolution of the size and age composition of the population, the level and distribution of income, the predominant consumption pattern, and other institutional, educational, and social organization conditions.
The production composition, income distribution, and labor market conditions can make it difficult to equate economic growth and well-being.
Identifying economic growth and social and environmental well-being is much more difficult, as it incorporates political, social, cultural, and environmental dimensions that people also desire, such as citizen security, full exercise of freedom in a democracy, or the elimination of environmental pollution in our natural environment, to name just a few examples.