An Integration of Neoclassical Growth Theory and Economic Structural Change with Monopolistic Competition Theory

Wealth accumulation is a deterministic factor mechanism of national economic growth. Neoclassical growth theory basically concerned with capital and wealth in perfectly competitive market. Global markets are characterized by great variety markets. Nevertheless, there only few rigorous models other types within neoclassical framework. This study attempts to contribute literature introducing monopolistic competition monopoly into theory. The model based on well-established theories. constructed framework the Solow-Uzawa two-sector model. description influenced Dixit-Stiglitz competition. modelling We behavior household Zhang’s utility function concepts current income disposable income. unique contribution this research integrate these theories comprehensive construct basic then analyze properties existence equilibrium point identified simulation. effects changes some parameters comparative static analyses parameters.