Endogenous Growth: Which Are the Important Factors?
Endogenous growth theory has been developed in order to overcome the unsatisfactory features of neo‐classical growth models. These models give richer explanations of empirical facts and are able to account for differences in growth rates between countries. The author argues that although considerable progress has been made on theoretical models, much is yet to be done empirically to define and isolate the explanatory factors of growth.
Keywords: endogenous growth, human capital, returns to scale, technological progress
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