Adam Smith's Theory of Growth - YouTube.
What are the theories of growth?
Endogenous growth theory emerged in the 1980s as an alternative to the neoclassical growth theory. It questioned how gaps in wealth between developed and underdeveloped countries could persist if investment in physical capital like infrastructure is subject to diminishing returns.
When was growth theory introduced?
The central thesis of Smith's The Wealth of Nations is that our individual need to fulfill self-interest results in societal benefit. He called the force behind this fulfillment the invisible hand.
What was Adam Smith's main theory?
"Economic Growth can be defined as an increase in overtime in per capita output of material goods". This definition is given by Paul Baran. A sustained increase in real per capita income is the true index of economic growth.