Question

Explain briefly two strengths and two limitations of the endogenous growth theory in practice

Answer 1

Answer) Following are 2 strengths and limitations of endogeneous growth theory

• Strengths

1. a lot more onus is on developing human capital which helps economy in long run and compliments other factors
2. A lot more onus is on innovation as internal factors are preferred to external factors leading to breakthroughs and boost to innovations.

• Limitations

1. With globalization now a key proponent in world,it is impossible to depend only on internal growth and factors
2. view on technology is narrow and limited as its development is focussed through internal factors which handicaps the whole point of using technology.

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