Economic growth

growthgrowth rategrowth theoryGDP growtheconomiceconomic growth rategrowth ratesgrowth economicsmarket growtheconomic growth theory
Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time.wikipedia
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Robert Solow

Robert M. SolowSolowR. M. Solow
"In a famous estimate, MIT Professor Robert Solow concluded that technological progress has accounted for 80 percent of the long-term rise in U.S. per capita income, with increased investment in capital explaining only the remaining 20 percent."
Robert Merton Solow, GCIH (born August 23, 1924), is an American economist, particularly known for his work on the theory of economic growth that culminated in the exogenous growth model named after him.

National accounts

national accountingnational accountGovernment accounting
Measurement of economic growth uses national income accounting.
Economic data from national accounts are also used for empirical analysis of economic growth and development.

Industrial Revolution

industrialindustrialismIndustrial Age
The rapid economic growth that occurred during the Industrial Revolution was remarkable because it was in excess of population growth, providing an escape from the Malthusian trap.
GDP per capita was broadly stable before the Industrial Revolution and the emergence of the modern capitalist economy, while the Industrial Revolution began an era of per-capita economic growth in capitalist economies.

Industrialisation

industrializationindustrializedindustrialised
Before industrialization technological progress resulted in an increase in the population, which was kept in check by food supply and other resources, which acted to limit per capita income, a condition known as the Malthusian trap.
As industrial workers' incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and economic growth.

Moore's law

computational powerincreasing performanceMoore’s Law
US productivity growth spiked towards the end of the century in 1996–2004, due to an acceleration in the rate of technological innovation known as Moore's law.
Moore's law describes a driving force of technological and social change, productivity, and economic growth.

Capitalism

capitalistcapitalistscapitalistic
In economics and economic history, the transition to capitalism from earlier economic systems was enabled by the adoption of government policies that facilitated commerce and gave individuals more personal and economic freedom.
Over time, capitalist countries have experienced consistent economic growth and an increase in the standard of living.

Market value

carrying valuemarketmarket cap
Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time.
Stability and economic growth are two factors that international investors are seeking when considering investment options.

Eric Hanushek

Dr. Eric HanushekEric A. HanushekHanushek, Eric A.
Eric Hanushek and Dennis Kimko introduced measures of students' mathematics and science skills from international assessments into growth analysis.
In his most recent book, The Knowledge Capital of Nations, Hanushek concludes that the quality of education is causally related to economic growth.

Endogenous growth theory

endogenous growthendogenousendogenous growth model
Unsatisfied with the assumption of exogenous technological progress in the Solow–Swan model, economists worked to "endogenize" (i.e., explain it "from within" the models) productivity growth in the 1980s; the resulting endogenous growth theory, most notably advanced by Robert Lucas, Jr. and his student Paul Romer, includes a mathematical explanation of technological advancement.
Endogenous growth theory holds that economic growth is primarily the result of endogenous and not external forces.

Human capital

human capital theoryhumancapital
Many theoretical and empirical analyses of economic growth attribute a major role to a country's level of human capital, defined as the skills of the population or the work force.
Some contemporary growth theories see human capital as an important economic growth factor.

Inflation

inflation rateprice inflationfood inflation
Growth is usually calculated in real terms - i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the price of goods produced.
Unless the economy is already overinvesting according to models of economic growth theory, that extra investment resulting from the effect would be seen as positive.

Daron Acemoglu

AcemogluAcemoglu, DaronDaren Acemoglu
According to Daron Acemoglu, Simon Johnson and James Robinson, the positive correlation between high income and cold climate is a by-product of history.
His research includes a wide range of topics, including political economy, human capital theory, growth theory, economic development, innovation, labor economics, income and wage inequality, etc. He noted in 2011 that most his research of the past 15 years concerned with what can be broadly called political economy.

Big push model

Big Pushtheory of the big push
One popular theory in the 1940s was the big push model, which suggested that countries needed to jump from one stage of development to another through a virtuous cycle, in which large investments in infrastructure and education coupled with private investments would move the economy to a more productive stage, breaking free from economic paradigms appropriate to a lower productivity stage.
He supports this argument by stating that the social marginal product of an investment is always different from its private marginal product, so when a group of industries are planned together according to their social marginal products, the rate of growth of the economy is greater than it would have otherwise been.

Gross domestic product

GDPnominal GDPper capita GDP
It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.
Quality improvements and inclusion of new products– by not fully adjusting for quality improvements and new products, GDP understates true economic growth. For instance, although computers today are less expensive and more powerful than computers from the past, GDP treats them as the same products by only accounting for the monetary value. The introduction of new products is also difficult to measure accurately and is not reflected in GDP despite the fact that it may increase the standard of living. For example, even the richest person in 1900 could not purchase standard products, such as antibiotics and cell phones, that an average consumer can buy today, since such modern conveniences did not exist then.

Innovation

pioneerinnovativeinnovator
Research done in this area has focused on what increases human capital (e.g. education) or technological change (e.g. innovation).
Another example involves business incubators – a phenomenon nurtured by governments around the world, close to knowledge clusters (mostly research-based) like universities or other Government Excellence Centres – which aim primarily to channel generated knowledge to applied innovation outcomes in order to stimulate regional or national economic growth.

Robert Lucas Jr.

Robert LucasRobert E. Lucas, Jr.Lucas
Unsatisfied with the assumption of exogenous technological progress in the Solow–Swan model, economists worked to "endogenize" (i.e., explain it "from within" the models) productivity growth in the 1980s; the resulting endogenous growth theory, most notably advanced by Robert Lucas, Jr. and his student Paul Romer, includes a mathematical explanation of technological advancement.
They have collaborated in papers on growth theory, public finance, and monetary theory.

Income distribution

distribution of incomeincomedistribution
The modern perspective which has emerged in the late 1980s suggests, in contrast, that income distribution has a significant impact on the growth process.
Important theoretical and policy concerns include the relationship between income inequality and economic growth.

Steady-state economy

steady-state theoriststeady state economyzero growth
In academia, concepts like uneconomic growth, steady-state economy and degrowth have been developed in order to achieve this.
A steady-state economy is not to be confused with economic stagnation: Whereas a steady-state economy is established as the result of deliberate political action, economic stagnation is the unexpected and unwelcome failure of a growth economy.

Creative destruction

mutation
A major model that illustrates Schumpeterian growth is the Aghion–Howitt model.
In Schumpeter's vision of capitalism, innovative entry by entrepreneurs was the disruptive force that sustained economic growth, even as it destroyed the value of established companies and laborers that enjoyed some degree of monopoly power derived from previous technological, organizational, regulatory, and economic paradigms.

Uneconomic growth

social and environmental costs
In academia, concepts like uneconomic growth, steady-state economy and degrowth have been developed in order to achieve this.
Uneconomic growth, in human development theory, welfare economics (the economics of social welfare), and some forms of ecological economics, is economic growth that reflects or creates a decline in the quality of life.

Club of Rome

the Club of Romett30tt30 Club of Rome
Critics such as the Club of Rome argue that a narrow view of economic growth, combined with globalization, is creating a scenario where we could see a systemic collapse of our planet's natural resources.
Published in 1972, its computer simulations suggested that economic growth could not continue indefinitely because of resource depletion.

The Limits to Growth

limits to growthlimits-to-growthDynamo
In 1972, The Limits to Growth study modeled limitations to infinite growth; originally ridiculed, these models have been validated and updated.
The Limits to Growth (LTG) is a 1972 report on the computer simulation of exponential economic and population growth with a finite supply of resources.

Exponential growth

exponentiallyexponentialgrow exponentially
Over long periods of time, even small rates of growth, such as a 2% annual increase, have large effects.
Economic growth is expressed in percentage terms, implying exponential growth.

List of countries by real GDP growth rate

Real GDP growth rateGDP growth ratefastest growing economies
List of countries by real GDP growth rate
This article includes a list of countries and dependent territories sorted by their real gross domestic product growth rate; the rate of growth of the value of all final goods and services produced within a state in a given year.

Economic development

developmenteconomicdevelop
An increase in economic growth caused by more efficient use of inputs (increased productivity of labor, physical capital, energy or materials) is referred to as intensive growth.
Whereas economic development is a policy intervention endeavor with aims of improving the economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP.