英语论文网

uctural Change (dual-sector) Model

The model suggests that economic growth depends on investment in technologically advanced and this will increase productivity.

Rostow’s Model - the 5 Stages of Economic Development presents his concept in ?The stage of economic growth”. He argues that within a society sequential economic steps of modernization can be identified. These steps are linear and towards an evolutional higher development. In 1960, the American Economic Historian, W.W. Rostow identifies five growth stages (figure 8).

Figure Figure Rostow’s Model –The Stages of Economic Development

He suggested that countries passed through five stages of economic development:

Stage 1 Traditional Society - Agriculture is the most important industry and production is intensive, using only limited quantities of capital.

Stage 2 Transitional Stage - Surpluses for trading emerge supported by an emerging transport infrastructure. Savings and investment grow.

Stage 3 Take Off - Industrialization increases, with workers switching from the land to manufacturing. Growth is concentrated in a few regions of the country and in one or two industries. New political and social institutions are evolving to support industrialization.

Stage 4 Drive to Maturity - Growth is now diverse supported by technological innovation.

Stage 5 High Mass Consumption - Rostow suggested that the model is specific of the USA economy.

Rostow’s Model - the 5 Stages of Economic Development suggested that economic development is supported by technological innovation, so is very important to invest in the advance of technology.

Solow Model extended the Harrod-Domar model by:

Adding labor as a factor of production;

Requiring diminishing returns to labor and capital separately, and constant returns to scale for both factors combined;

Introducing a time-varying technology variable distinct from capital and labor.

The capital-output and capital-labor ratios are not fixed as they are in the Harrod-Domar model. These refinements allow increasing capital intensity to be distinguished from technological progress.

The Exogenous growth model, also known as the Neo-classical growth model or Solow growth model is a term used to sum up the contributions of various authors to a model of long-run economic growth within the framework of neoclassical economics [3].

In the R.M. Solow model, the economic growth on long term depends only on the technological progress, while on short term depends on the capital accumulation, too (Rosca, 2007).

The Solow model explains growth as consequence made of use of technology in all economical domains.

Romer Model is the model of endogenous growth, due to Paul Romer (“Endogenous Technological Change,” Journal of Political Economy, 1990) which starts by accepting the Solow model’s result that technological progress is what determines long-run growth in output per worker. But, unlike the Solow model, Romer attempts to explain what determines technological progress.

Paul Romer said in (Romer, 90) that “growth in this model is driven by technological change then from intentional investment decisions made by profit-maximizing agents. The main conclusions are that the stock of h