Growth Theory Relation to Globalization

Length: Maximum 5,000 words

1. Neo-classical growth theory.

2. Endogenous growth theory ( I will takes this model as an example below)


Using relevant material from lectures and readings, and at least six sources from your own

research, write a critical analysis of each theory in a structured essay that considers 1)

how they relate to globalization, 2) the evidence for/against them, 3) how they can inform

policy, and 4) their limits.


Recommended essay format:

Use subsections to organize your analysis. A suggested structure for each of the two theories


Theory 1: Short name of theory

Section 1: Overview of theory

— A complete exposition of the key elements of the theory and making sure to explain how

global integration (financial or trade) fits with the theory. Include diagrams and equations, if


Section 2: Supporting evidence

— Cite at least two other papers here for each theory. Recreate tables, graphs etc. from source

material if it is useful.

Section 3: Policy implications

— Describe how does the theory can inform policy-making?

Section 4: Critique and alternative explanations

— Cite at least two other papers here. Add further tables, graphs etc. if necessary.




Theory 2: Endogenous Growth Theory

Section 1:

Overview of Endogenous Growth Theory Describe the meaning of the equations /formula/ graph. There is a category of endogenous

model’s view. Just for intense. If you find a better organize, you can change it.

1. (Murphy, Shleifer and Vishny,1989).

2. Young(1991)

3. Endogenous technological progress Arrow’s Model (explain their views and

why/how they are different. Choose two to explain very detail)



3)Monopoly competition and R&D theory

These articles are our course reading, choose at least one thanks.

1. Romer, P. (1990). Endogenous Technological Change. Journal of Political Economy.

2. Bassanini, A. & Scarpett, S. (2001). The Driving Forces of Economic Growth: Panel Data

Evidence for the OECD Countries. OECD Economic Studies, 2001, 33 (2).

3. Mata, T. and Louca, F. (2009).The Solow Residual as a Black-box. History of Political

Economy (41).

4. Rostow, W. (1960). The Stages of Economic Growth: A Non-Communist Manifesto.

Cambridge University Press. Chapter 2.

5. The Economist. (2006). The growth of growth theory.

6. De-Long, B.J. Growth Accounting.



Endogenous Growth Theory Relation to Globalization

For instance: international trade effect the K, A in endogenous model.

Section 2 You can support the evidence either for over view endogenous model or global integration

(financial or trade) fits with the theory.

Use this reference’s data:


and choose one more at least.

Section 3

How the Theory Forms Policy Implications:

Section 4: Critique and Alternative Explanation

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