• Exogenous growth, a key tenet of neoclassical economics, argues that economic growth is fueled by technological progress independent of economic forces.

  • The exogenous growth model takes into account production, diminishing returns on capital, savings rates, and technological variables to determine economic growth.
  • Both exogenous and endogenous growth models emphasize the role of technological progress in achieving sustainable economic growth.
  • The endogenous growth model differs from the exogenous growth model in that it assumes that forces within the economic system lead to the creation of an atmosphere for technological progress.