ECONOMIC GROWTH IN THE NEOCLASSICAL DIRECTION OF ECONOMIC THEORY
Abstract
The purpose of the article is to analyze the theoretical and methodological provisions of economic growth in the light of neoclassical economic theory and the possibility of applying its provisions in modern economic conditions. Methodology of research. The solution of the tasks set in the article is carried out with the help of the following general and special research methods: analysis and synthesis, systematization and generalization, reflection of economic thought, historical and genetic method. Findings. It is found that neoclassical theory focuses on elucidating the factors of economic growth, regardless of whether it will be growth in the long or short term. The main problem, solved by the neoclassicists, is the rational use of resources, which became limited under the influence of population growth and intensification of industrial production. It is found that this scientific direction is based on two main ideas of the theory of production: the value of products is created by factors of production, first of all labor and capital, each of which contributes to its creation; production function is a form of expression of the relationship between the product and its factors with all categories of functional analysis of this relationship of the marginal product, the elasticity of production, the elasticity of substitution of factors, etc. The neoclassical concept of economic growth adheres to the idea of the optimality of the market system as a self-regulating organism, which determines the best use of all production factors (both individual economic entities and the economy as a whole). Accordingly, there is no need for state intervention in the process of establishing the optimal ratio between the factors, as it is determined by free competition and market laws. Practical value. The application of the idea of neoclassical theory of growth in the practice of forming state growth policy in modern economic conditions allows considering economic growth in in dynamics and predicting its possibilities, taking into account both resource factors of growth and factors of social nature.
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