Economic Growth Theory

Economic Growth Theory explains how a nation's economy expands over time, increasing the production of goods and services. Key factors include capital investment, technological advancements, labor skills, and natural resources. Growth can result from improvements in productivity, innovation, and efficient use of resources. It also considers the roles of government policy, education, and trade. Different theories highlight various drivers of growth, such as classical, neoclassical, and endogenous growth theories. Overall, understanding these dynamics helps policymakers and businesses foster sustainable economic development and improve living standards.