The Theory of Growth

2020 ◽  
pp. 489-564
Author(s):  
Christopher Tsoukis
Keyword(s):  
Structural Change ◽  
Product Variety ◽  
Policy Implications ◽  
Endogenous Growth Theory ◽  
The World ◽  
Development Accounting ◽  
World Income ◽  
World Income Distribution ◽  
Growth Development ◽  
Ak Model

This chapter reviews the theory of growth. As motivation, it first discusses a range of related facts, including structural change and facts on the ‘new economy. It then launches into the Solow Growth Model (SMG) and related issues. The question of convergence, growth/development accounting, and the world income distribution are discussed next. The later part of the chapter discusses Endogenous Growth Theory(ies) (EGT). After offering an intuitive discussion of the limitations of SMG that EGT aims to rectify, the chapter reviews the AK model, including the processes that underpin it and its properties, and human capital, including its two-sector formulation. Newer EGT models are then reviewed, including models based on expanding product variety and those based on improving quality and product replacement (‘creative destruction’). The chapter concludes with evidence, the policy implications of EGT, and directions of current research.

scholarly journals Modeling economic growth fuelled by science and technology

2010 ◽  
Vol 40 (2) ◽  
pp. 319-340 ◽  
Author(s):  
Leonardo Costa Ribeiro ◽  
Ricardo Machado Ruiz ◽  
Américo Tristão Bernardes ◽  
Eduardo da Motta e Albuquerque
Keyword(s):  
Economic Growth ◽  
Science And Technology ◽  
Science Technology ◽  
The World ◽  
Scientific Papers ◽  
World Income ◽  
World Income Distribution ◽  
Wealth Of Nations ◽  
Simulation Exercises

This paper suggests a simulation model to investigate how science and technology fuel economic growth. This model is built upon a synthesis of technological capabilities represented by national innovation systems. This paper gathers data of papers and patents for 183 countries between 1999 and 2003, as well as GDP and population for 2003. These data show a strong correlation between science, technology and income. Three simulation exercises are performed. Feeding our algorithm with data for population, patents and scientific papers, we obtain the world income distribution. These results support our conjecture on the role of science and technology as sources of the wealth of nations.

12. Global Growth, Inequality, and Poverty:

2020 ◽  
pp. 313-353
Author(s):  
Robert Hunter Wade
Keyword(s):  
Economic Policy ◽  
World View ◽  
Washington Consensus ◽  
Liberal Ideology ◽  
The World ◽  
Economics Profession ◽  
World Income ◽  
World Income Distribution ◽  
Global Growth ◽  
Recent Demonstration

This chapter argues that economists have oversold the virtues of globalization, displaying confidence in derived policy prescriptions well beyond the evidence. The most spectacular recent demonstration of hubris is the failure of almost the whole of the mainstream economics profession in the few years before 2007–8 to forecast a major recession. The chapter then outlines the neo-liberal world view and its application in the form of the development recipe known as the Washington Consensus. Since the 1980s, the Western economic policy ‘establishment’ has espoused a doctrine of ‘best economic policy’ for the world which says, put too simply, that ‘more market and less state’ should be the direction of travel for developed and developing countries. This overarching neo-liberal ideology embraces globalization as a major component, relating to the nature of integration into the international economy. The chapter then looks at trends in world income distribution and poverty, bearing in mind the optimistic claims of the globalization argument.

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