Endogenous Growth

Endogenous growth refers to a theory in economics where a country's long-term economic growth is driven by internal factors, such as technological innovation, human capital, and knowledge. Unlike models that rely on external influences, endogenous growth emphasizes that investments in education, research, and infrastructure can create a self-sustaining cycle of improvement. This means that policies encouraging innovation and skill development can directly boost productivity and growth over time, making growth easier to achieve and maintain through internal efforts rather than external shocks.