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 Key Themes
The objective of this paper is to analyze the determinants of economic growth, both in general and regional contexts, using both theoretical and empirical evidence. The paper seeks to explain why some countries experience significantly slower growth than others and to highlight similarities and differences between general and regional growth patterns.
- Determinants of General Economic Growth
- Determinants of Regional Economic Growth
- Comparison of General and Regional Growth Determinants
- Neoclassical vs. Endogenous Growth Models
- The Role of Government Policies in Long-Term Growth
Chapter Summaries
I. Introduction: This introductory chapter establishes the paper's aim: to investigate the causes of economic growth by analyzing determinants of both general and regional growth, using theoretical frameworks and empirical evidence. It highlights the significant disparity in long-term growth rates between countries and the importance of understanding the underlying factors driving this disparity. The chapter also acknowledges the vastness of the field and the paper's focus on the most crucial growth determinants, emphasizing the complexity of their interaction and the need to identify the primary influences on growth. It outlines the structure of the paper, indicating a dedicated section for general and regional growth analysis followed by a conclusive chapter synthesizing the findings.
II. Main Part: This chapter delves into the core of the analysis, separating the discussion into two main sections: general growth and regional growth. It begins by acknowledging the wide variations in long-term growth rates and their significant impact on living standards, referencing the work of Barro and Sala-i-Martin (2004) to emphasize the importance of identifying policies that influence these rates. The chapter critiques neoclassical growth models, pointing out their limitations in explaining observed growth patterns and their struggles to account for international income disparities, convergence rates, and rates of return on capital. The chapter then transitions to endogenous growth models, outlining their strengths and weaknesses while highlighting the increasing emphasis on empirical evidence in modern growth studies. This section ultimately lays the foundation for a more in-depth examination of growth determinants in the subsequent sections focusing on general and regional factors.
2.1 Growth (General): This section provides an overview of the theoretical models used to understand general economic growth, starting with an introduction to neoclassical models, primarily based on Solow's work. It highlights the implications of diminishing marginal returns and the role of technological progress in sustaining growth. The limitations of the neoclassical approach are discussed, prompting the introduction of endogenous growth theory and its focus on factors such as increasing returns, R&D, and knowledge spillovers. The section contrasts both models, acknowledging the challenges of empirically testing theories that rely on intangible variables like knowledge, and concludes by highlighting the growing importance of empirical work in explaining post-1960s growth experiences, referencing the Summers-Heston (1991) data set.
2.2 Regional Growth: This section focuses on the determinants of regional economic growth. While the specific content isn't detailed in the provided text, it can be inferred that this section would parallel the analysis of general growth, exploring relevant theoretical models and empirical evidence within a regional context. It would likely discuss factors unique to regional development, such as geographical location, infrastructure, and regional policies, and compare these factors to those identified in the general growth analysis. The section would likely conclude with an analysis of the similarities and differences between factors influencing general and regional growth.
Keywords
Economic growth, regional growth, neoclassical growth model, endogenous growth theory, technological progress, government policies, long-term growth, income disparities, empirical evidence, Solow model, Summers-Heston data.
Frequently Asked Questions: Comprehensive Language Preview
What is the purpose of this document?
This document provides a comprehensive preview of a paper analyzing the determinants of economic growth, both generally and regionally. It includes the table of contents, objectives and key themes, chapter summaries, and keywords.
What are the main objectives of the paper?
The paper aims to analyze the determinants of economic growth in general and regional contexts, using theoretical and empirical evidence. It seeks to explain why some countries experience slower growth than others and highlight similarities and differences between general and regional growth patterns. Key themes include determinants of general and regional economic growth, a comparison of both, neoclassical vs. endogenous growth models, and the role of government policies.
What topics are covered in the Introduction chapter?
The introduction establishes the paper's aim: to investigate the causes of economic growth by analyzing general and regional growth determinants using theoretical frameworks and empirical evidence. It highlights the disparity in long-term growth rates between countries and outlines the paper's structure.
What is covered in the Main Part chapter?
The main part delves into the core analysis, separating the discussion into general and regional growth. It critiques neoclassical growth models, introduces endogenous growth models, and lays the foundation for a deeper examination of growth determinants.
What are the key aspects of the "Growth (General)" section?
This section provides an overview of theoretical models for understanding general economic growth, starting with neoclassical models (Solow's work) and highlighting the role of technological progress. It discusses the limitations of the neoclassical approach, introduces endogenous growth theory, contrasts both models, and emphasizes the importance of empirical work in explaining post-1960s growth.
What does the "Regional Growth" section cover?
This section focuses on the determinants of regional economic growth, likely paralleling the general growth analysis but exploring factors unique to regional development (geographical location, infrastructure, regional policies). It compares these factors to those influencing general growth.
What are the key takeaways from the Conclusion chapter (although not explicitly detailed)?
The conclusion (while not summarized in detail) would synthesize the findings from the analysis of general and regional growth determinants, likely highlighting similarities, differences, and overall conclusions about the factors driving economic growth.
What are the key keywords associated with this paper?
Key keywords include economic growth, regional growth, neoclassical growth model, endogenous growth theory, technological progress, government policies, long-term growth, income disparities, empirical evidence, Solow model, and Summers-Heston data.
What theoretical models are discussed in this paper?
The paper discusses neoclassical growth models (primarily Solow's model) and endogenous growth theory, contrasting their strengths and weaknesses in explaining observed growth patterns.
What kind of data is likely used in the paper's empirical analysis?
The paper mentions the use of empirical evidence and references the Summers-Heston (1991) data set, suggesting the use of macroeconomic data to analyze growth patterns.
- Citar trabajo
- Diplom-Kaufmann, M.A. Marco Alexander Caiza Andresen (Autor), 2006, Determinants of Growth (General) and Regional Growth, Theory and Evidence, Múnich, GRIN Verlag, https://www.grin.com/document/73337
