On solow's growth model.

Solow growth model, also known as neoclassical economic growth model and exogenous growth model, is a famous economic growth model put forward within the framework of neoclassical economics. Robert solow and Trevor Swan put forward independent economic growth models in 1956 respectively. Mainly used to explain the impact of the increase of fixed capital on GDP. The model assumes that the marginal rate of return on investment is decreasing, that is, the more you produce after a certain amount, the lower the efficiency. Model conclusion: The economic growth path is stable. In the long run, only technological progress is the source of growth.

So, does China's higher savings rate than that of foreigners bring about substantial economic growth? Yes, it is possible, but there are limits.

Or is it possible that China's birth policy has brought about substantial economic growth? Yes, it is possible, but there are limits.

In the basic growth model, a very important fact is that once the existing technology is no longer advanced, development will stop. Although we can employ more workers or increase the labor force through similar methods, if the number of workers and production technology remain unchanged, once the stable savings (investment) rate and stable depreciation rate are reached, the growth will stop at a certain value.

Without innovation, growth will stop. In order to increase GDP, we should first invest in new capital. After reaching the stagnation point, we need to invest in technology. Technology investment will bring innovation, and innovation will improve the overall economy.