Chapter 2 On Dynamics of Economic Development in the Light of Endogenous Growth: A Theoretical and Empirical Investigation

This chapter presents an exposition on the dynamics of economic development in relation with endogenous growth in as much as the aggregate output derives from capital which comprises of both human and physical capital. It is based on a growth-theoretic assessment of how nations or individual economies behave in term of whether the poorer ones get to catch up with the richer ones over time on capital stock and per capita income. The model developed herein has been shown to generate steady state equilibrium (of both stable and unstable nature) which constitutes a prime departure from endogenous growth theory. Beside this, the study also empirically examines whether there is any convergence in the last two decades (2000–2019) among developing and less developed countries on mean years of schooling (taken as a proxy as an input into human capital formation) in absolute and as well as conditional terms. It provides empirical evidence of convergence among developing and less developed countries on mean years of schooling over a period of 2000–2019 in absolute and conditional terms.