Endogenous growth theory

The lasting solution to the problem of poverty has to be found in improving the ownership of physical and human capital of the poor. Instead of assuming that growth occurs due to automatic and uploaded improvement in technology, the Endogenous Model focuses on understanding the economic growth a the endogenous outcome of economy in which profit seeking individuals search for newer and better ideas. Growth theories provide intellectual framework within different factors interact to determine the growth rate in the National Income. Endogenous Growth Theory fills a significant gap in the theories of economic growth.