Analysis of Economic Growth Factors: Knowledge Development and Institution Innovation

摘要

Economic growth is decided by factors of labor force, fixed assets, knowledge development and institution innovation. This paper firstly Discuss the new growth theory based on production function approach. Then proceeding from relation between income and cost, we lead the knowledge development and institution innovation to the model of economic growth, and set up the common economic growth mode, achieve the calculation method of contribution rate of every factor to economic growth through combining this model. Then, using the new model, analyze the economic growth factors of U.S. from 1991 to 2000 to examine the science and suitability of the new model. Finally, discuss several characteristics of the new model.