Title growth (1).pdf ✅

Growth Models and their Implications Siddha Raj Bhatta
Contents to be Covered • Economic Growth • Harrod Model • Domar Model • Implications of Harrod Domar Models • Limitations • Solow Swan/Exogeneous Growth Model • Change in Technology and Implications • Limitations • New Growth Theories and their Implications
Growth • Growth is the change in real output of the economy over time. • Measured by the changes in real GDP. • A broad measure of increase in welfare. • Growth theories broadly discuss about what determined economic growth rate.
Harrod Model • Two Main Arguments : • It is the rate of savings that determine growth rate. • The economic is highly unstable. Once the equilibrium is disturbed, never again it can be attained.