Economic Growth

According to Neoclassical model, economic growth can be achieved by accumulating labor force, capital and other production factors. Because all these factors reduce marginal yields, the economy can achieve a stable balanced revenue only by continuously increasing savings and investment while suppressing population growth. However, policies that help to increase savings and investment while suppressing population growth, especially in developing countries, are difficult to implement.

First, we need to determine the meaning of economic development or economic growth. A general understanding of economic growth is defined as economic growth. This is the growth of the country's average productivity over the specified period, measured by the country's GDP. GDP is "Investopedia of all finished goods and services produced within the border within a certain period" and is a function of consumption expenditure + government expenditure + investment + net export - import. As pointed out in the preamble, there are more articles on this topic, and it is difficult to compress them all into such pretty narrow pieces. But the core model of these works is that people can discuss and analyze in more detail. In this book, Becker established the theory of human capital.

Human capital is one of the determinants of the literature on economic growth. In most studies investigating the relationship between accumulation of human capital and economic growth, we adopt two approaches, an accounting framework and an endogenous model. The framework of growth accounting suggests that education supports economic growth by increasing individual human capital stock and improving productivity. The endogenous growth model thinks that the creation of innovative ideas is a direct function of human capital, which is expressed in the form of scientific knowledge. Therefore, investment in human capital will promote the growth of physical capital, which in turn will promote economic growth. Accumulation of human capital may promote growth through adoption of catalyst technology. Alternatively, human capital may be necessary for technical use.