With reference to the three main growth theories (ie., exogenous, endogenous and

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With reference to the three main growth theories (ie., exogenous, endogenous andevolutionary-institutional), explain the main factors that are expected to influence long-run growth.

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(a) Factors influencing long-run growth:

Exogenous: Technological progress, population growth, physical capital, education.
Endogenous: Human capital, R&D, knowledge spillovers, positive externalities.
Evolutionary-Institutional: Institutions, social/cultural factors, path dependence.
(b) South Korea's policy application:

Invested in education, attracted foreign investment/technology (FDI), strong institutions.


Explanation:
a. Exogenous, endogenous, and evolutionary-institutional growth theories all give distinct viewpoints on the variables impacting long-run economic growth:



1. Exogenous Growth Theory:

Exogenous growth theory credits economic growth to external variables outside the economy's control. According to this hypothesis, technical innovation is critical in supporting long-run growth. In exogenous growth theory, some major elements that determine long-run growth are:



Technological advancements contribute to increased productivity, creativity, and efficiency in the economy, propelling economic growth.


Population expansion may enhance productivity and economic output, hence favourably boosting growth.


Physical Capital Investment: Increased investment in infrastructure, machines, and other physical assets may boost productivity and promote growth.


Human Capital and Education: A well-educated and competent workforce may contribute to increased productivity, innovation, and economic prosperity.



2. Endogenous Growth Theory:

According to endogenous growth theory, economic growth is governed by internal forces that are impacted by policies, institutions, and individual behaviour. According to this idea, the primary elements believed to impact long-run growth are:



Investments in education, training, and healthcare result in a more skilled and healthier workforce, supporting long-term prosperity.


R&D: Increased R&D expenditure supports innovation and technical advancement, which drives economic growth.


Knowledge Spillovers: Information exchange and knowledge dissemination among enterprises and sectors can contribute to increased productivity and economic growth.


Policies that provide positive externalities, such as financing research institutes, can encourage growth.



3. Evolutionary-Institutional Growth Theory:

The significance of institutions, culture, and social norms in determining economic growth is emphasised in evolutionary-institutional growth theory. According to this idea, the following are important elements impacting long-run growth:



Institutions and government: Well-functioning institutions, such as rule of law, property rights protection, and stable government, foster economic growth.


Social and Cultural Factors: Economic growth may be influenced by social cohesiveness, trust, and cultural attitudes towards innovation and entrepreneurship.


Path Dependence: Historical events and previous economic decisions can result in self-reinforcing growth paths that continue through time.