The article discusses recent developments in growth theory for small open economies. It explores two key models: the endogenous growth model and the non-scale growth model. The endogenous growth model shows how fiscal policy affects the economy's growth rate, while the non-scale growth model is more flexible in its transitional dynamics. Both models can be adapted to various economic issues. Additionally, the impact of volatility on growth is examined, with a focus on how it can be interpreted using a stochastic extension of the endogenous growth model.