BALANCED ECONOMIC GROWTH FROM THE STANDPOINT OF MODERN GROWTH THEORIES

Abstract

For decades, world economy has been going through certain processes which vary from expansion to stagnation, and vice versa. Therefore, elements, meaning causes of economic growth, are the key question which dates from the seventies and Adam Smith. National economies integrated through world economy are going through some of the changes which can be explicitly explained by observing the quality of economic growth. For that reason, on one side there are regions with sustainable development and balanced economic growth, but as well, there are economies which are categorized as developing countries due to their expansion. Distortion of world economy, observed through economic growth and inequality of national economies, from the standpoint of economic theories, can be explained by various models of economic growth.