The Concept of economic growth reveals his main definition, according to which economic growth is considered to be the quantitative and qualitative changes of the social product over a specific period of time.
The Russian theory of economic growth in its development followed the tenets and followed the achievements of the Marxist school. In the middle of the last century, the school has achieved really significant scientific results. The Marxist theory of economic growth was based on two fundamental assumptions: when the growth rate of the economy with savings and progressive impact on the growth of the economy public ownership.
Western economic growth theory tried to reflect the diversity and complexity of economic development, putting forward many interesting hypotheses and concepts.
Western economists gradually ceased so to scrutinize the short - and medium-term Growth models and turned its focus to long-term economic growth model. In addition, the scientists switched the attention from the identification of growth factors on the representation of the growth process in a more accurate measurement and specific numbers.
About the middle of the century there were such A model of economic growth, which is peculiar to attempts to capture economic growth mathematically with the aim of the study region possible, the selection desired.
Similar to the neoclassical direction of such uses common to all models tool for the analysis of in quantitative terms as a production function.
The basis of production functions that can be used to build A model of economic growth, lies the two-factor function, which considers the dependence of production only from the factors of labor and capital. Thus from the influence of other factors, the theory at this stage fully abstrahere.
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The First such two-factor model was used by American scientists in the manufacturing industry. The developers of the idea were made by mathematician Charles Cobb and economist P. Douglas. Subsequently, the function of production Cobb— Douglas began to be widely used by many scientists for developing growth models, taking into account the expanding number of production factors.
In the late 50's it was successfully used by the American economist R. Solow, made one of the first attempts to study depending on the volume of production from the factor of technological progress. The latter may be differently considered in the different models of economic growth: either as an exogenous factor or as endogenous.
R. Solow used several equations to describe the state of the macroeconomic system. His writings have created a new capabilities for analysis of macroeconomic systems and the development of new growth models of this type. By and large, the neoclassical model by relying on the functions of production, determine the quantitative characteristics are taken into account when assessing the impact of production factors on the growth rate of the economy.
Neoclassicism the assumption that the market price provides a balance of supply and demand, investments, resources, savings, and other factors. In contrast, Neokeynesians proceeded from the opposite premise, considering economic growth as a phenomenon is unstable. Such models include models of E. Domar, N. Kaldor, R. Harrod, E. Hansen, and others.
The stages of economic growth according to the American sociologist W. Rostow are as follows: traditional society, transitional society, a period of revolutionary changes, a period of Mature companies and the era of high stages of public consumption.
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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
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