Endogenous Growth Theory and Its Influence on Capital Accumulation

This article examines how endogenous growth theory explains the relationship between capital accumulation and sustained economic growth. It focuses on the roles of physical capital, human capital, knowledge, and research and development in expanding productive capacity. Particular attention is given to the mechanisms through which learning, innovation, and knowledge spillovers can affect investment incentives and returns to capital. The discussion distinguishes the accumulation of tangible assets from the development of capabilities that support their productive use. It also considers how institutional conditions, resource allocation, and public policy may influence these processes. The article aims to develop a conceptual framework for understanding the interaction between capital accumulation and technological change while recognizing differences among endogenous growth models and the conditions underlying their predictions.