THEORIES OF GROWTH MANAGEMENT AND ORIGINATORS

1.      Classical Theory

a.       Adam Smith

Assume that the real economic growth relies on the existence of a growing population. With the population growth there will be increase output or outcome. Adam Smith's theory contained in his book The Wealth of Nations.

b.      David Ricardo

Argues that the growth factor to the greater population to be doubled at a time will cause the amount of labor is abundant. Excess labor will result in wages will be dropped so that the economy stagnated (statonary state).

2.      Neoclassical Theory

Robert Solow

Argues that economic growth is a series of activities which is based on human capital accumulation, the use of modern technology and the result or output. All of that can lead to positive and negative impacts.

3.      Theory Harrord Domar

This theory was developed by two economics after Keynes is Evsey Domar and Sir Roy F. Harrod which assumes that the capital should be used effectively for economic growth is strongly influenced by the role of capital formation in addition it also discusses the theory of national income and employment.

4.      Theory Schumpeter

Schumpeter more underlines the importance of the role of economic actors who have the spirit of entrepreneurship in creating economic development. According to Schumpeter the higher level of economic progress, the more limited the possibility to conduct innovation. This is what triggered the undeveloped state (stationary state).

5.      Endogenous Growth Theory / Theory of Endogenous growth models or Mixed According Schiit (2003) there are two models to explain the theory of endogenous growth, namely:

a.       Lucas (1988) theory of the accumulation of human capital / human capital

In this theory the economy consists of agents that seek to maximize lifetime utility.

b.      Romer (1990) theory of research & development / research & development

In this theory the economy consists of three sectors, namely:

1.      Sector Research.

Using the human capital and the stock of existing knowledge to produce the design of capital goods will be sold to the intermediate goods sector.

2.      The intermediate goods sector

Using the design of the economy and savings to produce capital goods.

3.      Sector of finished goods

Combining labor with capital goods and human capital to produce finished goods.