Empirical Analyze of Exogenous Economic Growth

Kasun D Ramanayake R.A

Abstract


In 1956, Robert Solow published a paper on economic growth and development titled “A Contribution to the Theory of Economic Growth.” For this work and for his later contribution to our understanding of economic growth, Solow was awarded the Nobel Prize in Economics in 1987. This descriptive paper illustrated Solow model in a short overview. But this model has not yet been assumed various factors such as social capital, international trade, income distribution etc. which are theoretically considered important for the growth of economies. Even though there are some issues in the Solow model with regard to the way the properties of production factors and certain variables were used, it is a mathematically correct model up to date. Moreover, the final section of this Paper illustrates how the Solow model, or its simple extensions can be used to interpret economic growth overtime, highlighting the factors such as investment or capital accumulation. However, this model has the potential to go a long way if the main characteristics were considered thoroughly.


Keywords


Basic Model, Solow Diagram, Comparative Statics, Technology, Empirical Growth

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DOI: http://dx.doi.org/10.52155/ijpsat.v13.1.718

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