Development Path Of Modern Economic Growth Theory

From Harrod and Domar established the first economic growth theory , modern economic growth theory is one of main topics what economist discuss. According to standard vertion of orthodox economics, economic theory model explains quantity relationship among all sorts of economic variables. All variables in the model are divided into endogenous variables and exogenous variables: the numerical value of endogenous variables is decided by model, but the numerical value of exogenous variables is gaven in advance. According to whether the way of economic grow is endogenous or exogenous, taking economic growth theory model rising from 80 years of the 20th century as boundary, traditionally modern economic growth theory model is divided into old economic growth theory and new economic growth theory—endogenous economic growth theory.In fact modern economic growth theory is a development path ,which gradually developed into new models through the endogenization of the exogenous factors in the Harrod—Domar model. But it is not original for economic growth theory model rising from 80 years of the 20th century, which make variables in the model endogenesis for structuring new economic growth theory model. Reviewing the first modern economic growth theory model established by Harrod and Domar, endogenous and exogenous variables are plain distinguished in the start. There are four exogenous factors in Harrod—Domar model: ICOR,Rate of saving,Rate of technology progress and Increase rate of labor. As the start of the endogenization of modern economic growth theory, the development history of economic growth theory is a endogenous path of the four factors. The theme of this book is to summary economic growth theory in accordance with endogenization of ICOR,Rate of saving,Rate of technology progress and Increase rate of labor in turn ,and touch upon the theory exposition and evaluation about Harrod—Domar model,Sollow model,The optimal economic growth model and New economic growth model,finally provide some advisement with economic growth theory for china's economic development.