Dialectics of the Neoclassical Growth Model : Implications for Economic Growth

The first wide-ranging attempt at thought-provoking growth processes produced the exogenous growth model otherwise known and referred to as the neoclassical growth model. It assumes amongst others, a diminishing rate of returns to physical capital in the production process as well as endogeneity of population growth and technological change. This paper takes a dialectical look at the neoclassical growth model and pays particular attention to the implications in the presence of changes in growth-investment parameters: depreciation rate, population growth rate and the growth rate of savings