What is endogenous growth theory, Microeconomics

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Problem 1:

Any development strategy should put people first; indeed, its very effectiveness should be measured in terms of how it impacts the poor.

(a) Describe the link between development and poverty with reference to the UNDP's efforts to quantity these phenomena.

(b) What measures will a government take to ensure that the benefits of economic growth trickle down to the poor?

Problem 2:

(a) What is endogenous growth theory and what are its policy implications?

(b) Do you think that endogenous growth theory can give a good explanation of the Mauritian "economic miracle"? Discuss fully with reference to the relevant empirical literature.


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