The Growth Of Economic Growth Theory

The outline of the growth of the world economy can be broadly described in the following table.From the table, we can easily get that the growth rate of the national per income of the world is quite different from different times. And the economic growth just happens in these two recent centuries. What's more, there is also a great difference in the speed of the per growth among different countries. Because of the importance of the growth of the national income to the welfare of the people, we must explore the mystery of the growth of the economy in order to well understand the process of the growth and to accelate the growth of the economy.In the face of the problem of the economic growth and the growth differences among different countries, Lucus once said: "It is amazing of the result of the human welfare that is contained in these prolbems: It is very different for him to think other problems once a person begins to consider these problems." Because of the charm of the problem of the economic growth, there are many economists who devote their talents and energies to exploring the mystery of the economic growth. Therefore, the study of the different times consitutes the so-called theory of economic growth of today. Because of the differences of their periods and the research methods, it formed the theory of economic growth of different phases. In this paper, we will classify the theorist of economic growth according to the chronology so as to divide the results of their research into different theory of economic growth. It is noted that although there are many themes relating to the growth, such as health, inequality, education, pollution, sustainable, freedom, and so on, we don't consider these problems. Although these problems are also as important as the growth itself, we only focus on the evolution of growth theory, what's more, we lay more emphasis on the mainstream of economic growth theory.In this paper, we will review the theory of economic growth from three aspects. First, the economic activities, especially the realistic development of the operation of the growth. Compared with the economic activities, although other human activities will also influence the evolution of the theory of economic growth, it is slender. Second, the logic development of the economic growth models, particually the production function and the changes of the variable containing in them. Third, the development of the research method, there are different research methods and research tools with the theory of economic growth of different historiclal periods. The innovation of the method and the tool promote the development of the theory of economic growth. Therefore, it can be said that these three factors together form the development of the growth theory. The explaination of the different levels of the human growth operation, the distinctnesses of the using of the production function, the differences of the variable in production function and the meanings of different variable and the dissimilar research methods and tools, which form the diverse theory of economic growth. This paper will study the theory of economic growth according to these three main aspects in order to explore the rule of the development of the theory of economic growth and the directiong of its future development. This paper generally includes the following important parts, One, introduction.Briefly introduce the significance, resecrch ideas and research methods, innovation and inadequacy of this paper. Two, the factors of the theory of economic growth.In this part, we will introduce the various factors which constitute the theory of economic growth in details. One important problem that the theory of economic growth should solve is to research the problem of the national output growth through some assumptions and research method. Therefore, it is necessary to introduce the various factors of the growth theory. They are as follows, the significance of the growth of the national wealth and the differences between them, the definition of the capital, labor,thchnology, production function and their applications in the theory of economic growth, the nature of the convergence growth and the steady growth and the method of the research of the growth theory.Three, the classical theory of economic growth.In this phase, the framework of the growth theory is established preliminaryly. In this part, we will introduce the theory of economic growth contained in the classical economic theory and the concept of economic growth ahead of it. There are many scholars who put forward the concept of economic growth, but our work is far from complete, so we only choose some inportant and representative concepts to analyze and study and to conclude. We will divide this period into two phases, the first one is the concept of economic growth in the fore classical period, that is, the period to make preparement for the establishment of the framework of the economic growth theory. The second one is the classical theory of economic growth, that is, the period to establish the framwork of the growth theory. The first stage is about the concept of the representatives of the physiocracy (Francois Quesnay, 1694-1774) and the merchantile system (William Petty, 1623-1687). The second stage is about the concept of the economic growth of the representatives of the classical economic theory, such as Adam Smith(1723 - 1790), David Richard Cantillon (1680-1734), Thomas Robert Malthus(1766-1834), John Stuart Mill (1806-1873)and so on.Four, the first revolution of the theory of economic growth. This is the stage that the economic growth theory changes from the classic to the new classic. Scholars generally accept the model of Harold and Thomas as the first revolution of the theory of economic growth. Their contributions make the research of the theory of economic growth go on well, that is, using the standardized model that established by the mathematical tool to study and research the economic growth and the variable that influence the economic growth. In this chapter, we will analyze and introduce this model in details and then propose some views that are different from the traditional.Five, the new classical theory of economic growthThis is also the second revolution of the development of the theory of economic growth. In this part, we will mainly introduce the Solow-Swan model and the Cass-Koopmans-Ransey model in details.Six, endogenous growth theoryThis theory is also known as new growth theory, which is the third revolution of the development of the theory of economic growth. There are many contents and literatures in this period. Because of the limit of the space and the reading ability of the author, in this part, we will choose some representatives and their contributions to introduce in details on the basis of the comprehensive balance.Seven, System, other factors and the theory of economic growth Among many models in the new classical theory of economic growth and new growth theory, it is difficult to explain the reality because of the lack of the elements of the system. Therefore, we need to have a further close to the reality. In this part, we will maily introduce the concept and theory of economic growth which bring the system into the model and analytical framework. Of course, we will also take the factors such as geography, natural resources and population and so on into consideration.Eight, the industrial revolution, the economic crisis, the economic theory and the evolution of growth theory.The occurrence of the major issue of the operation the social economy, the technological revolution and the occurrence of the industrial revolution that creat the opporatunity for the economic theory, which is the same to the theory of economic growth. Looking at the history of the evolution of the economic theory and the theory of economic growth, we can get that they have a close relationship with the important events that happened in the history of human economic development, such as thchnological revolution, industrial revolution and economic crisis. In this part, we will attempt to reveal the association between them.Nine, positive research and the theory of economic growth Because of the development of econometric and the collation and the collection of the data related to the economic growth in various countries, which makes the analysis of the economic growth of a nation and the comparison of economic growth among various countries convenient. In this part, we will introduce the above content in brief, that is, the analysis of the source of the economic growth, the validated research of some model and theory, the comparison of the growth between thegroups of countries.Ten, new attempt and the trend of the further development of the economic growth theoryIn this part, we will mention almost every element related to the economic growth, that is to say, we will creat a more complicated economic growth model which covers all the elements in the four stages of the development of the economic growth theory. And the framework of this model will degrade to different economic growth model and theory as we condider the defferent elements and use different analysis methods and tools.With the evolution of the human economic growth activities, every element will play different role in different evolved stages. Therefore, we can view economic growth activities and understand the economic growth theory of the economic growth activities from the historical perspective. And our new framework will try to meet the above points.According to the models, the historical and economic background of the birth of the theory and thought, the different analysis and research methods and the different model assumptions and theoretical logic, we can classify the economic growth theory into the above stages. In this paper, we will use the method of historical description, induction, comparative analysis and so on to describe the development of the economic growth theory.By the classification of the important economist of the econimic growth in the history, we can not only grasp their thoughts well, but also understand the background of the birth of their thoughts, the relation among their thoughts, the innovation and the disadvantages of their thoughts. On this basis, we can only well understand and use the existing economic growth theory, and use them to offer an effective guidance for the operation of our economy. And we try to find the further development trend of our theory to do the growth theoretical innovation once again and tigger another revolution in economic theory.