That is the kind of diversity that helps support strong and sustained overall growth.4 When we think about the main drivers of economic growth, many of us picture industries like mining, motor vehicles or aerospace. While these sectors still matter a great deal to the economy, many service industries are increasing in importance.
Two basic frameworks those can be derived from the Endogenous Growth Theory are: (a) Nelson-Phelps approach, and (b) Lucas approach. The former relates growth to the stock of human capital through two channels, i.e. directly through human capital’s effect on a country’s ability to innovate (the domestic innovation component), and indirectly through its ability to facilitate technology adoption, i.e.