Evolution of growth theory: from Harrod to Romer

Abstract

Economics and the ideas of economists are often found to be closely linked with how society and individuals can enhance their economic well-being and how the process of growth and wealth accumulation can be encouraged. From the very beginning of economic thought, the idea of economic growth and the process of achieving it has been a prime concern among scholars of economists. The growth theory, put forward by Sir Henry Roy Forbes Harrod is popularly known as a starting of the modern views relating to growth theories. The paper tries to present a survey regarding the development of these modern growth theories of economics starting from Harrod to Romer, who got the Novel Prize for his endogenous growth theory.

Keywords

• growth theories
• modern growth theory
• endogenous growth
• evolution