A Comment on the Endogenous Growth Theory

On the basis of the former theories of economics, some economists have established the endogenous growth theory as one of the neo-classical growth theory since the mid-1980s. Emphasizing on the increasing returns to scale, spillover effect and accumulation of specialized human capital, the endogenous growth theory is a breakthrough in this regard. The new theory can be used to explain more reasonably some phenomena of economic growth and to guide the policy of decision-making. However, the theory itself has some weaknesses such as the theory frame, production function, analytical methods.