Theoretical models of economic growth

Theoretical models of economic growth explain how economies expand over time. They consider factors like technological innovation, capital investment (buildings, machines), and human skills. For example, some models emphasize that improvements in technology or education boost productivity, leading to higher incomes. Others highlight the importance of saving and investing to increase resources. These models help us understand what drives long-term economic development, guiding policymakers on how to promote growth through investments, innovation, and education. Ultimately, they show that sustained growth results from a combination of technological progress, resource allocation, and human effort.