What conclusions are derived from exogenous growth theory-00731
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vu cs501 Advance Computer Architecture.
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vu cs501 Mid Term Solved Past Paper No. 2.
Exogenous Growth Theory
The major conclusions derived from the exogenous growth are as follows:
The steady growth rate of real GDP depends on exogenous rates of growth of population (n) and technology (t). There are no policies for government for how to affect the steady growth rate of a country. Higher savings can only have a little effect on income it cannot cause long term growth because savings cause diminishing returns to investment and capital accumulation.
If one country started with lower income and capital than another country, the poorer country will grow faster to catch up the richer country and then both the countries will grow together.
