The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Endogenous Growth Theory

  • Peter Howitt
Reference work entry


Endogenous growth theory explains long-run growth as emanating from economic activities that create new technological knowledge. This article sketches the outlines of the theory, especially the ‘Schumpeterian’ variety, and briefly describes how the theory has evolved in response to empirical discoveries.


Aggregate production function Capital accumulation Competition Creative destruction Economic growth Endogenous growth Human capital Innovations Intellectual capital Intermediate products Intertemporal utility maximization Law of large numbers Marginal product of capital Neoclassical growth theory Physical capital Product variety Productivity growth Research and development Saving rate Schumpeterian growth Steady state Technological progress Technology Technology frontier Total Factor productivity Transfer of technology 

JEL Classifications

This is a preview of subscription content, log in to check access.


  1. Aghion, P., and P. Howitt. 1992. A model of growth through creative destruction. Econometrica 60: 323–351.CrossRefGoogle Scholar
  2. Aghion, P., and P. Howitt. 1998. Endogenous growth theory. Cambridge, MA: MIT Press.Google Scholar
  3. Aghion, P., C. Harris, P. Howitt, and J. Vickers. 2001. Competition, imitation and growth with step-by-step innovation. Review of Economic Studies 68: 467–492.CrossRefGoogle Scholar
  4. Barro, R.J., and X. Sala-i-Martin. 1992. Convergence. Journal of Political Economy 100: 223–251.CrossRefGoogle Scholar
  5. Corriveau, L. 1991. Entrepreneurs, growth, and cycles. Doctoral dissertation, University of Western Ontario.Google Scholar
  6. Dinopoulos, E., and P. Thompson. 1998. Schumpeterian growth without scale effects. Journal of Economic Growth 3: 313–335.CrossRefGoogle Scholar
  7. Evans, P. 1996. Using cross-country variances to evaluate growth theories. Journal of Economic Dynamics and Control 20: 1027–1049.CrossRefGoogle Scholar
  8. Frankel, M. 1962. The production function in allocation and growth: A synthesis. American Economic Review 52: 995–1022.Google Scholar
  9. Gerschenkron, A. 1952. Economic backwardness in historical perspective. In The progress of underdeveloped areas, ed. B.F. Hoselitz. Chicago: University of Chicago Press.Google Scholar
  10. Grossman, G.M., and E. Helpman. 1991. Innovation and growth in the global economy. Cambridge, MA: MIT Press.Google Scholar
  11. Howitt, P. 1999. Steady endogenous growth with population and R&D inputs growing. Journal of Political Economy 107: 715–730.CrossRefGoogle Scholar
  12. Howitt, P. 2000. Endogenous growth and cross-country income differences. American Economic Review 90: 829–846.CrossRefGoogle Scholar
  13. Jones, C.I. 1995. R&D-based models of economic growth. Journal of Political Economy 103: 759–784.CrossRefGoogle Scholar
  14. Lucas, R.E. Jr. 1988. On the mechanics of economic development. Journal of Monetary Economics 22: 3–42.CrossRefGoogle Scholar
  15. Mankiw, N.G., D. Romer, and D.N. Weil. 1992. A contribution to the empirics of economic growth. Quarterly Journal of Economics 107: 407–437.CrossRefGoogle Scholar
  16. Peretto, P.F. 1998. Technological change and population growth. Journal of Economic Growth 3: 283–311.CrossRefGoogle Scholar
  17. Romer, P.M. 1986. Increasing returns and long-run growth. Journal of Political Economy 94: 1002–1037.CrossRefGoogle Scholar
  18. Romer, P.M. 1990. Endogenous technological change. Journal of Political Economy 98: S71–S102.CrossRefGoogle Scholar
  19. Schumpeter, J.A. 1942. Capitalism, socialism and democracy. New York: Harper.Google Scholar
  20. Segerstrom, P.S., T.C.A. Anant, and E. Dinopoulos. 1990. A Schumpeterian model of the product life cycle. American Economic Review 80: 1077–1091.Google Scholar
  21. Solow, R.M. 1956. A contribution to the theory of economic growth. Quarterly Journal of Economics 70: 65–94.CrossRefGoogle Scholar
  22. Swan, T.W. 1956. Economic growth and capital accumulation. Economic Record 32: 334–361.CrossRefGoogle Scholar
  23. Uzawa, H. 1965. Optimal technical change in an aggregative model of economic growth. International Economic Review 6: 18–31.CrossRefGoogle Scholar
  24. Young, A. 1998. Growth without scale effects. Journal of Political Economy 106: 41–63.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Peter Howitt
    • 1
  1. 1.