Neoclassical Growth vs. Endogenous Growth Theory

Can we say both of theory predict the “Permanently higher living standard”? Thanks.

Yes.

I thinkt he difference between both is one see the development from inside the economy as a think coming other thinks that external stimulus is required?

Depending on certain parameters.

Both says that there’s room for improvement in a developing country. However, endogenous growth theory needs savings or internal investments to grow.

Just think about… You are getting 50% in the mock exams. You have a lot of room for improvment. However, someone getting 90% is already so high. It’s very hard to get 90 to 91% but easy to do 50 to 51%.

Rahul Roy doesn’t need that much effort to go from 90% to 91%

Rahul Roy is fast becoming the Chuck Norris of Level 2…