A Comprehensive Analysis and Brief Comment on the Endogenous Growth Theory

Since the middle of 1980s some economists, with Romer and Lucas as the representatives, have established the endogenous growth theory on the basis of the economic growth ideas of the former predecessors through a fresh reflection on the neo-classical growth theory. This theory, with its emphasis on the increasing of returns in scale, spillover effect and accumulation of specialized human capital, is a great breakthrough in the traditional economic growth theories. It not only made it possible to explain some facts of economic growth, but had a certain reference value for every country to design their long-term increasing policies. However, the endogenous growth theory still possesses some defects and therefore demands further development in such aspects as the theoretical frame, production function, and analysis method.