Economic growth is one of the most powerful forces shaping human history. Even small differences in growth rates, sustained over time, can lead to vast differences in living standards between nations. Economists study growth to understand this profound process and answer two fundamental questions.

1. How can we reduce poverty? Sustained economic growth is critical for lifting populations out of poverty. The economic acceleration in India beginning in the 1980s, for example, has been invaluable in the country’s efforts to grow its way out of poverty, demonstrating the powerful link between national growth and individual well-being.
2. Will poorer countries catch up to richer ones? Observers of the global economy have long noted a tendency for some poorer countries to grow faster than more advanced ones, a phenomenon economists call “convergence.” Understanding whether and under what conditions this catch-up occurs is a central puzzle in economics.

To make sense of these complex issues, economists have developed several theoretical frameworks, or “paradigms.” This document explains the core ideas behind the main growth paradigms, guiding you from the foundational Neoclassical model to the two major waves of Endogenous Growth theory: the AK model and modern innovation-based theories.