Analyzing Economic Growth Dynamics in Emerging Economies Using Contraction Fixed Point Approach

This paper applies contraction fixed point theory to analyze the stability and convergence properties of traditional economic growth models in the context of Nigeria's economy. The results show that both models satisfy the contraction condition, ensuring global asymptotic stability and convergence to a unique steady state capital stock and equilibrium growth path, respectively. The simulation results illustrate the state dynamics and convergence behavior of the models, highlighting the stabilizing role of policy and institutional parameters. However, when the contraction condition is violated, the models exhibit divergence or persistent instability, emphasizing the importance of policy discipline in maintaining macroeconomic stability. The research provides insights for policymakers and economic planners in emerging economies, suggesting that policy coordination and institutional strengthening are crucial for ensuring sustainable economic growth.