Some countries are richer compared to the others across the world. The richness aspect is defined in terms of human capital, physical capital, and productivity. The Solow Growth Model is still one of the best models to explain this variation. Solow Growth Model, which was developed by economist Robert Solow in 1956, is a neoclassical model that explain economic growth by using three basic sources that are Labor (L), Knowledge (A), and capital (K). The paper will outline Solow’s assertion of the factors that increase richness in a country and brings the variation with others. Moreover, the paper will provide the real-world data that matches the Solow’s perspective.

Keywords: economic growth, Solow’s model, Capital, Labor, Knowledge