The aim of this term paper is to find out what causes economic growth through analyzing determinants of growth in general and of regional growth, both in theory and evidence. The question why some countries grow significantly slower than others has been discussed intensively over the last decades. By thorough study of literature the main determinants will be indicated and similarities and differences between general and regional growth become visible. After a short introduction, in the second chapter the main growth determinants will be presented individually for the general and the regional area, each time also an introduction to the extensive literature (theory and empirics) of the specific area will be given beforehand. In the last chapter a conclusion will be drawn and an answer given to the question on which are the key determinants by comparing them with each other and in how far the results do distinguish on general and regional level.
Table of Contents
I. Introduction
1.1 Purpose of the Paper
II. Main Part
2.1 Growth (General)
2.1.1 Introduction to Growth (General)
2.1.2 Determinants of Growth (General)
2.2 Regional Growth
2.2.1 Introduction to Regional Growth
2.2.2 Determinants of Regional Growth
III. Conclusion
Objectives and Topics
This paper aims to identify the underlying causes of economic growth by analyzing key determinants in both general and regional contexts, based on a comprehensive review of existing literature and empirical evidence. It seeks to compare these determinants to establish how they influence economic performance at national and sub-national levels.
- Theoretical foundations of neoclassical and endogenous growth models
- Impact of government policies, openness to trade, and technology on growth
- Role of human capital, institutional frameworks, and geographical factors
- Comparative analysis of growth drivers in national versus regional settings
- Mechanisms of regional development, including agglomeration and specialization
Excerpt from the Book
2.1.2 Determinants of Growth (General)
Regarding the plurality of linkages between the determinants it is not possible to make a strict division. Nonetheless, to give a better overview, the determinants are presented as individually as possible.
Neoclassical and endogenous growth models do not treat the role of government explicitly and thus the impact of governmental policies was not focussed. Recent empirical work has put emphasis on the government’s role and its policies on growth. However, a pervasive theoretical basis is still missing. A large amount of policy-oriented studies has been carried out in the past decade (see e.g. Temple 1999 for a survey). Nevertheless, the specific mechanisms, which link policy settings to growth, are still being disussed. In the case of diminishing returns to reproducible factors and exogenous saving rates, growth of population and technological progress, as in the neoclassical approach, government policies do not play a significant role in growth. (Even in the neoclassical models this view may not be maintained, when assuming that policy may have an effect on saving behaviour through influencing the resource allocation across individuals.) On the other side, government policies may affect the rate of growth persistently if physical and human capital investment is regarded as endogenous and shows constant or even increasing returns to scale.
Chapter Summary
I. Introduction: This chapter outlines the research objective, which is to analyze the determinants of economic growth at both the general and regional levels through a literature review.
II. Main Part: This section provides a detailed exploration of theoretical growth models and examines specific determinants including government policies, trade openness, technology, human capital, institutions, and geography, distinguishing between general and regional perspectives.
III. Conclusion: The concluding chapter synthesizes findings on growth determinants, highlighting the complex interplay between institutions, geography, and policy, while noting that regional success often requires a more precise alignment of these factors than general economic growth.
Keywords
Economic growth, Regional growth, Neoclassical growth models, Endogenous growth, Government policies, Foreign trade, Technological progress, Human capital, Institutions, Geography, Agglomeration, Knowledge spillovers, Innovation, Convergence, Development.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper investigates the fundamental determinants of economic growth by analyzing both general national growth and regional growth through theoretical frameworks and empirical literature.
What are the central thematic areas covered in this work?
The core themes include neoclassical and endogenous growth models, the role of government policy, international trade openness, technology, human capital, institutional quality, and the significance of geographical location.
What is the main objective or research question?
The primary goal is to determine what causes economic growth and to identify similarities and differences between the "deep" determinants of growth at the national versus the regional level.
Which scientific methodology is utilized?
The author employs a comprehensive literature analysis and synthesis of existing empirical studies and cross-country regressions to evaluate various growth theories.
What is discussed in the main part of the paper?
The main part presents detailed analyses of specific determinants such as trade openness, technology, human capital, and institutions, first at a general level and then specifically within the context of regional development.
Which keywords best characterize this publication?
Key terms include economic growth, regional growth, endogenous growth, technological progress, institutions, and trade openness.
How does regional growth theory differ from general growth theory according to this paper?
The paper suggests that while general growth can occur when only some determinants are optimized, success at a regional level requires a more precise, near-perfect match of multiple determinants.
What role does geography play in long-term economic growth?
Geography is considered an exogenous factor that affects income and trade interactions, though the paper emphasizes that superior geography is neither necessary nor sufficient for growth on its own.
- Citation du texte
- Diplom-Kaufmann, M.A. Marco Alexander Caiza Andresen (Auteur), 2006, Determinants of Growth (General) and Regional Growth, Theory and Evidence, Munich, GRIN Verlag, https://www.grin.com/document/73337
