What is endogenous theory of growth

Answer 1

Endogenous growth theory is an economic theory that focuses on the drivers of economic growth within a country. The theory suggests that a country's ability to innovate and develop new technologies is a key driver of economic growth. Unlike traditional growth theory, which emphasizes the importance of capital accumulation and labor inputs in driving economic growth, endogenous growth theory argues that technological progress and knowledge accumulation are the primary drivers of economic growth. The theory suggests that education, research and development, and investments in human capital are critical factors that drive technological progress and innovation. By promoting these factors, policymakers can stimulate long-term economic growth and development.