BASIC QUESTIONS OF ECONOMIC GROWTH MECHANISM

Abstract

The author elaborated and, by a world economic investigation on 131 countries, verified a growth model considering both physical and human capital, as well as time, as the event space of creative economic activity. The main components of the model are the intensity functions using which one can map the three fundamental types of technical progress and thus economic growth and development from the initial state without physical capital to our days. The model is functioning well concerning both developed and developing countries, as demonstrated by the paper with the examples of the United States and India .