Seminar paper from the year 2006 in the subject Economics - Economic Cycle and Growth, grade: 1,7, University of Paderborn (Faculty of Economics, Business Administration and Business Computing ), course: Research and Independent Studies in International Economics, language: English, abstract: The aim of this term paper is to find out what causes economic growth through analyzing determinants of growth in general and of regional growth, both in theory and evidence. The question why some countries grow significantly slower than others has been discussed intensively over the last decades. By thorough study of literature the main determinants will be indicated and similarities and differences between general and regional growth become visible. After a short introduction, in the second chapter the main growth determinants will be presented individually for the general and the regional area, each time also an introduction to the extensive literature (theory and empirics) of the specific area will be given beforehand. In the last chapter a conclusion will be drawn and an answer given to the question on which are the key determinants by comparing them with each other and in how far the results do distinguish on general and regional level.

Monograph on the economic theory of regional level economic growth, including developing areas - reviews existing economic models and growth models relating to the location of industry and industrial concentration, the role of urban area growth poles, internal migration, capital flows, technology transfer, decentralization and suburbanization, regional investment, etc., and briefly considers regional planning implications. Bibliography pp. 237 to 253.

Determinants of economic growth: An overview Thijs de Ruyter van Steveninck, Nico van der Windt, and Maaike Oosterbaan Netherlands Economic Institute What causes economic growth? Why have some countries grown much faster than others? Why do some countries not grow at all, or even experience negative (per capita) growth rates? What can governments do to raise the growth rates of their country? These questions were discussed at a conference on March 23 and 24, 1998, organized by the Netherlands Economic Institute (NEI) on behalf of the Netherlands Ministry of Foreign Affairs. This book contains the proceedings of the conference. Economic growth is widely considered as a necessary (though not sufficient) condition for poverty alleviation. During the past two decades, scholars and researchers have found a renewed interest in thinking about economic growth, and advances in the understanding of economic growth have taken place. On the one hand, the theoretical understanding of growth has progressed on various fronts, including endogenous technological innovation and increasing returns to scale; the interaction of population, fertility, human capital, and growth; international spill-overs in technology and capital accumulation; and the role of institutions. On the other hand, the increasing availability and use of data sets has given a large incentive to empirical research on cross-country growth, following the path-breaking work ofBarro (1991).

The efficiency of investment is as important as the level of investment in determining growth performance. Policies that make investment more efficient and reduce distortions in resource allocation generally encourage growth.

Regional economics – an established discipline for several decades – has undergone a period of rapid change in the last ten years resulting in the emergence of several new perspectives. At the same time the methodology of regional economics has also experienced some surprising developments. This fully revised and updated Handbook brings together contributions looking at new pathways in regional economics, written by many well-known international scholars. The aim is to present the most cutting-edge theories explaining regional growth and local development. The authors highlight the recent advances in theories, the normative potentialities of these theories and the cross-fertilization of ideas between regional and mainstream economists. It will be an essential source of reference and information for both scholars and students in the field.

"This paper reviews, appraises, and critiques theoretical and empirical research on the connections between the operation of the financial system and economic growth. While subject to ample qualifications and countervailing views, the preponderance of evidence suggests that both financial intermediaries and markets matter for growth and that reverse causality alone is not driving this relationship. Furthermore, theory and evidence imply that better developed financial systems ease external financing constraints facing firms, which illuminates one mechanism through which financial development influences economic growth. The paper highlights many areas needing additional research"--NBER website