•Another cornerstone of the neoclassical free-market argument is the assertion that liberalization (opening up) of national markets draws additional domestic and foreign investment and thus increases the rate of capital accumulation.
•In terms of GDP growth, this is equivalent to raising domestic savings rates, which enhances capital-labor ratios and per capita incomes in capital-poor developing countries.
•The Solow neoclassical growth model in particular represented the seminal contribution to the neoclassical theory of growthand later earned Robert Solow the Nobel Prize in economics.