What are the factors that promote and hinder the development of the economy.

The development of the economy depends on internal and external factors. It increases or decreases depending on the conditions affecting the economy. For example, serfdom hinders the development, since the majority of the population cannot fully participate in the development of the economy. With an absolute monarchy and serfdom, the country has a low share of free capital. The factors contributing to the development of the economy are foreign investment and the state protectorate. With a policy of protectionism, the position of local producers is improved.