On the mechanics of economic development

Lucas, Robert E.

doi:10.1016/0304-3932(88)90168-7

Cited by 24,085Economic Growth and ProductivityEconomic Theory and PolicyGlobal trade and economics

On the mechanics of economic development

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Lucas, Robert E.·1988·Journal of Monetary Economics

DOI 10.1016/0304-3932(88)90168-7

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Endogenous growth theory emphasizes that internal factors such as human capital, innovation, and investment are key drivers of long-term growth.
“the endogenous Growth theory (lucas, 1988; romer, 1986) emphasizes that internal factors-such as human capital, innovation, and investment-are key drivers of long-term growth.”
From Remittance–economic growth linkage in Africa: the roles of financial development and inflation (2025) · cites this paper as lucas, 1988
An economy can grow unimpeded as long as it does not run out of technological advancement driven by newly improved human capital acquired through investments in education, health, research and development, on-the-job training, among others.
“The endogenous growth models of Romer (1986Romer ( , 1990)), Lucas (1988), Rebelo (1991) and Barro (1991Barro ( , 2001) ) propose that an economy can grow unimpeded as long as it does not run out of technological advancement driven by newly improved human capital acquired through investments in education, health, research and development (R&D), on-the-job training, among others.”
From Does investment in education and health impact youth employment outcomes? Evidence from Sub-Saharan Africa (2023) · cites this paper as Lucas (1988)
Education and health are key human capital variables.
“Education and health have been identified by scholars like Becker (1962Becker ( , 1964b)), Romer (1986Romer ( , 1990)), Lucas (1988), Rebelo (1991), Barro (1991Barro ( , 2001)), and Aghion and Howitt (1997) as key human capital variable.”
From Does investment in education and health impact youth employment outcomes? Evidence from Sub-Saharan Africa (2023) · cites this paper as Lucas (1988)

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“For example, Lucas (1988) argued that financial development is not a determinant of economic growth because as the economy reached a steady-state level, excess capital has no significant impact on economic growth.”
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“Page 2 of 16 Arguments around growth determinants like those of Becker (1962), G. Becker (1964a), Romer (1986, 1990), Lucas (1988), Rebelo (1991), Barro (1991, 2001), Aghion and Howitt (1997), have always been that knowledge, skills, health as well as education are inputs to economic production…”
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“…on EG can be explained by several classical theories such as the classical growth theory (Ricardo, 1817; Smith, 1776), Keynes’ growth theory (Keynes, 1936), the neoclassical growth theory (Solow, 1956; Swan, 1956), and the endogenous growth theory (Barro, 1991; Lucas, 1988; Mankiw et al., 1992).”
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Authors: Lucas, R. E.
Affiliations: National Bureau of Economic Research (US)
Corresponding author: Lucas, Robert E.
Venue: Journal of Monetary Economics
Publisher: Elsevier BV
Published: 1988-07
Volume: 22
Issue: 1
Pages: 3-42
ISSN: 0304-3932 (ISSN-L)
DOI: 10.1016/0304-3932(88)90168-7
OpenAlex: W2099268311
Cited by: 24,085
References: 1
Citations by year: 2026: 1133 · 2025: 1108 · 2024: 906 · 2023: 1047 · 2022: 972 · 2021: 999 · 2020: 1003 · 2019: 982 · 2018: 949 · 2017: 848 · 2016: 888 · 2015: 932 · 2014: 993 · 2013: 958 · 2012: 922
FWCI: 243.88
Type: journal article
Language: en
Open access: green
papers.ssrn.com
Licence: www.elsevier.com/tdm/userlicense/1.0/ (tdm)
Locations: Journal of Monetary Economics (publishedVersion)
SSRN Electronic Journal (submittedVersion)
RePEc: Research Papers in Economics (submittedVersion)
Topics: Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
Keywords: economic development, neoclassical growth theory, international trade, physical capital accumulation, technological change, human capital accumulation, school education, hands-on learning

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