Growth Theories
Growth theories are frameworks that explain how economies expand over time. They focus on factors like capital accumulation, technological innovation, and labor force growth. Notable theories include the Classical Growth Theory, which emphasizes the role of land, labor, and capital, and the Solow-Swan Model, which introduces the importance of technological progress in sustaining long-term growth.
Another important perspective is the Endogenous Growth Theory, which suggests that economic growth is driven by internal factors, such as human capital and knowledge. This theory highlights the significance of innovation and education in fostering economic development, contrasting with earlier models that viewed growth as primarily influenced by external factors.