This essay is a comparison study of traditional Neoclassical growth theory and
new growth theory. It also discusses growth theory in the real world by
investigating the so called “growth miracles” and “growth disasters” scenarios in
the developing world. Finally, the essay performs a standard growth accounting
exercise on South African economy mainly focuses on the importance of human
capital in growth process. Growth accounting exercise shows that South Africa
experiences a capital-accumulated growth in the 1970s and 80s, while sharply
shifts to technology-accumulated growth in the 1990s and early 2000s.