Growth theory aims to explain longterm economic growth from "summary" of Growth Theory by Robert M. Solow
Growth theory delves into the fundamental question of what drives economic growth over the long term. It seeks to uncover the underlying mechanisms that propel economies forward, enabling them to expand and improve living standards. By examining the factors that contribute to sustained growth, economists aim to provide insights that can inform policy decisions and help societies achieve prosperity. At the heart of growth theory is the concept of technological progress. This refers to the development and adoption of new technologies that increase the productivity of labor and capital. As economies innovate and improve their production processes, they are able to produce more output with the same inputs, leading to higher levels of economic growth. Technological progress is seen as a key driver of long-term growth, enabling economies to continually improve their efficiency and expand their capabilities. Another key aspect of growth theory is the role of human capital in driving economic development....
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