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Learning from Growth Theory

  • Jati Sengupta

Abstract

Economic growth theory provides two types of lessons: one by identifying the key determinants of growth and the other by empirical verification of theory. The first shows which sources and determinants are important and why. The second shows various pitfalls in some of the theories. Here we attempt a historical overview of growth theory and its broad social and economic implications. We discuss only those contributions which have relevance to modern economic growth characterized by market based systems undergoing technological change and worldwide competition. In our view these contributions in growth theory are most important for countries like India which is entering the phase of a “new economy.” This new economy is driven by high growth in the information technology (IT) sector and new economic reforms, which favor rapid growth in foreign direct investment and joint ventures in R&D networks.

Keywords

Total Factor Productivity Growth Theory Total Factor Productivity Growth Industry Evolution Spillover Technology 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Jati K. Sengupta 2005

Authors and Affiliations

  • Jati Sengupta
    • 1
  1. 1.University of CaliforniaSanta BarbaraUSA

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