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This article may be too technical for most readers to understand. Please help improve it to make it understandable the economics of growth aghion...

This article may be too technical for most readers to understand. Please help improve it to make it understandable the economics of growth aghion howitt pdf non-experts, without removing the technical details. The talk page may contain suggestions.


Endogenous growth theory holds that economic growth is primarily the result of endogenous and not external forces. Endogenous growth theory holds that investment in human capital, innovation, and knowledge are significant contributors to economic growth. The theory also focuses on positive externalities and spillover effects of a knowledge-based economy which will lead to economic development.

The endogenous growth theory primarily holds that the long run growth rate of an economy depends on policy measures. For example, subsidies for research and development or education increase the growth rate in some endogenous growth models by increasing the incentive for innovation. In the mid-1980s, a group of growth theorists became increasingly dissatisfied with common accounts of exogenous factors determining long-run growth.

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