Why do Economies Grow Essay Example | Topics and Well Written Essays - 500 words

Why do Economies Grow - Essay ExampleHere, the capital essentially includes all occupation tools. More work was done by other researchers after Solow to expand his mathematical model, as a result of which, certain other factors were also found to be the driving factors of a nations economy. Such factors include but are not limited to human capital and land. The validity of culture generated by Solow can be estimated from the fact that he was awarded the 1987 Nobel Prize in economics (Hardesty, 2011). Technology plays an consequential role in boosting the economy of a country. The following chart shows how the listed countries economy grew from 1973 till 2007 Economic step-up in different countries from 1973 to 2007 (Kenworthy, 2011). It can be seen in the chart above that certain countries showed a great growth of economy as compared to others in the mentioned duration. One reason is catch-up partly because they could borrow technology from the leaders, countries that began with a lower per capita GDP tended to grow more rapidly (Kenworthy, 2011). Sustainability of economic growth depends on several factors interchangeable the property market, mortgage trends and interest rates etc.