Why do Economies Grow Essay Example | Topics and Well Written Essays - 500 words

Why do Economies Grow - Essay Example Here, the capital essentially includes all production tools. More work was done by other researchers after Solow to expand his mathematical model, as a result of which, certain other factors were also found to be the driving factors of a nation’s economy. Such factors include but are not limited to human capital and land. The validity of information generated by Solow can be estimated from the fact that he was awarded â€Å"the 1987 Nobel Prize in economics† (Hardesty, 2011). Technology plays an important role in boosting the economy of a country. The following chart shows how the listed countries’ economy grew from 1973 till 2007: Economic growth in different countries from 1973 to 2007 (Kenworthy, 2011). It can be seen in the chart above that certain countries showed a greater growth of economy as compared to others in the mentioned duration. â€Å"One reason is â€Å"catch-up†: partly because they could borrow technology from the leaders, countries tha t began with a lower per capita GDP tended to grow more rapidly† (Kenworthy, 2011). Sustainability of economic growth depends on several factors like the property market, mortgage trends and interest rates etc.