Endogenous Growth Theory

Endogenous Growth Theory

• Significant contributors to economic growth include human capital, technological progress, and institutional factors.
• The main idea is that economic growth is driven by internal factors, such as technological progress and institutional factors, rather than external factors.
• The long-run growth rate of an economy depends on the rate of technological progress and the accumulation of human capital.

Dissatisfaction with Common Accounts of Long-run Growth

• In the mid-1980s, a group of growth theorists were dissatisfied with common accounts of long-run growth because they did not adequately explain the underlying mechanisms driving growth.

Focus of Endogenous Growth Theory

• Endogenous growth theory focuses on the internal factors that drive economic growth, such as technological progress and human capital accumulation.

World War I

The War

• The two main coalitions that fought in World War I were the Allies (France, Britain, Russia, etc.) and the Central Powers (Germany, Austria-Hungary, Ottoman Empire, etc.).
• Fighting took place on several fronts, including the Western Front in France and Belgium, the Eastern Front in Russia, and the Italian Front in Italy.

Outbreak of World War I

• The event that triggered the start of World War I was the assassination of Archduke Franz Ferdinand of Austria-Hungary by Gavrilo Princip, a Serbian nationalist, in Sarajevo, Bosnia, on June 28, 1914.
• Austria-Hungary declared war on Serbia on July 28, 1914, which led to the escalation of the conflict.

German Strategy

• The German strategy in 1914 was the Schlieffen Plan, which involved a quick military campaign against France and Russia to avoid a two-front war.