A Review on Endogenous Growth Theory

Since 1980s,the endogenous growth theory has important theoretical contribution: it endogenized technological progress in model,and overcomes the flaws of Solow's growth model,and united the accumulation of capital with technological innovation in the endogenous growth model.At the same time,the theory is more convincing for the reality,it also has important policy implications for government intervention.But the theory has some shortcomings: the production function does not go beyond the neoclassical growth theory,knowledge capital and technology do not reflect the nature of capital.Endogenous growth theory does not analyze structural changes and path-dependent feature,and also does not analyze the endogenized institution for economic growth.The innovations of endogenous growth theory must pay attention to these features,in order to make a more complete theoretical system.