Theory of Economic Growth

The Theory of Economic Growth explores how economies increase their production of goods and services over time. It focuses on factors like capital investment, technological advancements, and workforce skills that contribute to this growth. Economies typically grow when businesses innovate and expand, when people are educated and skilled, and when there’s effective governance and infrastructure. This growth leads to higher living standards, more jobs, and improved quality of life. Understanding these dynamics helps policymakers create strategies to foster sustainable economic development and address challenges like inequality and environmental impact.