Marsolist theory of growth.part one

The growth of macroeconomic theories in mordern time has assume a fundamental constant and it requires far reaching effort to enhance the nature of growth model to exceed the pace of technological change in the long run.

However over the course of time a couple of macroeconomic growth theories were pronounced and therefore was begun to evolve from the embryonic era of classical nations down into the mordern times.

Economic growth is primarily defined as the increase in the production of goods and services measured by a growth in Gross domestic product when measured and compared at two different .Whereas economic development refers to institutionalization of this growth diffused at every sector and division of the economy depicted by rising productivity.

In the ultimate measurements of the growth the three most widely used economic theories ranging from classical, neoclassical and mordern theory of economic growth.With the emergence of Abraham growth theory of marsolism,the fabric of growth models has assume a frightening dimensions entirely from neomordern perspective.

In the front lead of influential growth theorists beginning with the Adam Smith of the classical school,the classical growth theory,Robert Slow and Trevor Swan of the neoclassical growth theory,and Roy Harrod and Evsey Domar of the mordern growth school.Regardless of conceptual differences,the same objective was to conceptualise growth and explain reason behind it.

Unlike classical school,that argues that the importance of economic growth is found in studying in the rise and fall of economic growth ,how it contracts and expand;the neoclassical economists such as Solow and Swan had different views entirely.They argue that economic growth depends on the nature of consumer behavior and that the behavior of economic participants within the system determine the ratio of inherent growth generated.

The modern theory of growth argues that by unraveling the foundational riddles of economics we unleash growth .Harold and Domar differently argue that economic growth is determined primarily by capital accumulation.That economic growth is directly related to amount of capital available for investment a spillover effect of savings rate in the economy at a given period.This model as a proposed Keynesian development economics propounded 1930s,1940s died over 40 years ago and was only relevant in the developing countries .

There's no iota of doubt in the fact that the failure and inadequacy of Harold Domar growth model led to the evolution of new concepts in the field in 1950s.The rise of Swan and Solow

The classical marsolism in its theory of growth assume that growth in the economy is driven by change in the nature of power market at a particular period.The growth theory of neoclassical marsolism believe of all components of power market the most influential is the technological power that singlehandedly determines the direction of economy and by