Psychological Determinants of Economic Growth

Abstract

This study aimed to examine the psychological determinants of economic growth. The study sample was taken from Tanzania in two regions- Mwanza and Kagera. The cross-sectional survey research design was used. The self-checklist questionnaires were used to collect the primary data from 211 individuals. The analysis-weighted automatic linear modelling (AW-ALM) and probit model were used to examine the linear and non-linear behaviour of the psychological determinants (Hube) on economic growth respectively. The study found that the main psychological determinant of economic growth is the motivation of the individual. Moreover, the study evidenced the concavity and convexity of functional/relational behaviour of the Hube on economic growth in the Mwanza and Kagera regions respectively. The study concluded that the effective motivation packages for economic growth are that involve both bounded choices or self-interested (intrinsic) and unbounded choices or induced-interest (extrinsic) motives. Consequently, the study recommended that appropriate motivational strategies should be involved both intrinsic and extrinsic stimuli of the individual. Keywords: Cognitive Psychology, Intrinsic and Extrinsic Motives, Lifestyle, Metacognition.