Question

Contrast the neoclassical economic theory with the new economic theories (new endogenous growth theory, new economic geography, and strategic trade theory)? Do the new economic theories reject the neoclassical economic theory? Substantiate your arguments with real world case(s) and example(s). ( Explain it in detail)

Answer 1

In neo classical growth models the long - run rate of growth is exogenously Determined by Either saving rate Or the Rate of Technical progress. however the saving rate and rate technolgical progress remain unexplained endogenous growth theory tries to overcome this shortcoming by building Macroeconomics Models out of Microeconomic foundation

Geocraphical economi

there are varieous mathodological Approaches Neoclasical location theorists following in the tradition of Alferd weber , tend to focus on industrial location and use quantitaive methods since 1970.

two broad reactions Against Neoclassical approaches have significally changed the discipline. marxist political economy growing out of work of david harvey. and the New economic geography which takes into Account social, cultural and institutional factors in the special economy.

economists such as paul krugama and jeffry such have also analyzed may traits related to economic geography .

which directly compets with an approach within the discipline of geography that is also callef new economic geography