MODELING ECONOMIC GROWTH AND CAPITAL ACCUMULATION PROCESSES USING DIFFERENTIAL EQUATIONS

Abstract

This article examines the role of differential equations in modeling economic growth and capital accumulation processes. The study explores the possibilities of mathematically describing dynamic changes occurring in economic systems over time. The relationships among capital growth, investment volume, savings rate, and depreciation are analyzed through differential equations. Particular attention is paid to the Solow Growth Model, one of the most widely used mathematical models in economic growth theory. Both theoretical and practical aspects of capital accumulation are discussed, along with the application of mathematical methods for forecasting economic development. The findings demonstrate that differential equations serve as an effective tool for analyzing economic dynamics, evaluating economic policies, and designing long-term development strategies.