Main Determinants of Economic Development: Following are the main determinants of economic development:

(i) Natural Resources: The availability of natural resources facilitates and accelerate economic growth and economic development. It is believed that quality and quantity of natural resources affect the rate of growth.

(ii) Human Resources: Another important determinant of economic development is the quantity and quality of human resources or the population. Other things being equal, educated and technically qualified manpower helps in achieving higher growth-rate. On the other hand, illiterate and unskilled population retards economic growth.

(iii) Capital Formation: Stock of capital is crucial for rapid economic growth. For increasing the stock of capital, rate of savings must be high. The savings must be invested. Given the rate of savings and investment, the rate of growth will depend upon capital-output ratio. If the domestic savings are not sufficient government can seek external assistance to increase capital-formation, and growth-rate in developing countries.

(iv) Technology: Technology plays an important role in the economic development. Technological progress depends upon continuous research and development. Through technological process a nation may overcome other constraints such as scarcity of natural resources and low productivity. Developed economies invest in its human capital.