scholarly journals When is the Spirit of Capitalism Effective for Economic Development?

2018 ◽  
Vol 10 (3) ◽  
pp. 70
Author(s):  
Shiro Kuwahara
Keyword(s):  
Growth Rate ◽  
Economic Development ◽  
Growth Model ◽  
Growth Analysis ◽  
Creative Destruction ◽  
Asset Accumulation ◽  
Ramsey Model ◽  
Two Factors ◽  
Spirit Of Capitalism

By incorporating endogenous innovation and wealth preference into the growth model, this paper aims to combine two important factors of economic development — “creative destruction,” as emphasized by Schumpeter (1912) and modelized by Aghion and Howitt (1992), and the “spirit of capitalism,” proposed by Weber (1905). Zou (1994) introduced this “spirit of capitalism” into the modern growth analysis by reinterpreting the Kurz (1968) model, wherein a preference on asset accumulation is introduced into the Ramsey model. By uniting these two factors, we obtain the result that this preference basically stimulates the long-term growth rate, and that it is effective when the economy has a too low innovation efficiency. However, the effect is small for an economy with a sufficiently high innovation efficiency.

scholarly journals TERRITORIAL TRANSFER OF KNOWLEDGE IN TERMS OF CREATIVE DESTRUCTION

2017 ◽  
Vol 50 (1) ◽  
pp. 269-287
Author(s):  
Robert Ciborowski
Keyword(s):  
Economic Development ◽  
Price Competition ◽  
Structural Changes ◽  
Regional Cooperation ◽  
Creative Destruction ◽  
Innovation Activity ◽  
Transfer Of Knowledge ◽  
Innovation Activities ◽  
Business Entities

Abstract ‘Creative destruction’ is one of the most important analytical tools, taking into consideration both the economic and sociological characteristics of capitalist society. According to Schumpeter, in the long term, evolution gives rise to economic development resulting from batches of innovative solutions, leading to improvements in the standard of living. The innovation activity of firms is based on supply-side factors, hence it is large enterprises that excel in innovation since they strive to achieve a monopoly market position and above-average profits. Schumpeter attempts to combine two elements: the spread of monopolies and the continuation of economic development, both occurring through innovation, which is far more important than price competition. The Schumpeterian ‘creative destruction’ permeates the main aspects of macroeconomic activity, not only in the long term, but also in the area of economic fluctuations, structural changes, or the functioning of markets. As a result, it becomes a factor determining changes in the economic order. The purpose of this paper is to analyse the role of territories in the process of creating and using knowledge and its impact on the economic efficiency of the companies which function within their boundaries. Regional cooperation increases the involvement of business entities in innovation activities, which translates into higher competitiveness of firms. Moreover, the awareness of the necessity of cooperation and use of innovation capital tends to grow.

Effect of farmyard manure and mineral fertiliser on the growth of maize (Zea mays L.) in a long-term experiment II. Using the hunt-parsons program for plant growth analysis

2010 ◽  
Vol 58 (4) ◽  
pp. 355-365 ◽  
Author(s):  
G. Micskei ◽  
I. Jócsák ◽  
Z. Berzsenyi
Keyword(s):  
Growth Rate ◽  
Zea Mays ◽  
Growth Analysis ◽  
Growth Parameters ◽  
Farmyard Manure ◽  
Functional Method ◽  
Mineral Fertiliser ◽  
Absolute Growth Rate ◽  
Absolute Growth

In a long-term continuous maize experiment set up in 1959, the functional method of growth analysis was applied to investigate the effect of various levels of farmyard manure and mineral fertilisation on the growth of maize (Zea mays L.) and on the dynamics of the growth parameters over a 3-year period (2005–2007). The experiment involved two nutrient levels (based on the active agent equivalence principle): Level l: the NPK equivalent of 35 t ha−1 farmyard manure (FYM), applied in the form of FYM, FYM + mineral fertiliser or mineral fertiliser; Level 2: the NPK equivalent of 70 t ha−1 farmyard manure (FYM), applied in the form of FYM, FYM + mineral fertiliser or mineral fertiliser. The computerised growth analysis program elaborated by Hunt and Parsons (1974) was used to describe the effect of FYM and mineral fertiliser and to evaluate the results. This program fits functions to calculate the absolute growth rate (AGR), the relative growth rate (RGR), the net assimilation rate (NAR) and the leaf area ratio (LAR).The Hunt-Parsons program fitted a third-degree function to the dynamics of total dry matter production and second- or third-degree functions to that of the leaf area growth. The highest mean values of AGR were obtained in treatments with the higher level of mineral fertiliser alone or mineral fertiliser + FYM when the weather was favourable (2.05–2.31 g plant−1 day−1), and in treatments with the lower quantity of mineral fertiliser alone or mineral fertiliser + FYM in the case of dry weather (1.73–1.74 g plant−1 day−1). In 2005 and 2006 the absolute growth rate gave a good characterisation of the various fertiliser effects, which exhibited high values with significant differences, while in 2007 lower AGR values were obtained and no fertiliser effects were observed. In the dry year (2007) the maximum values of NAR and LAR were higher in all the treatments than in the wetter years (except at the lower rate of mineral fertiliser alone). In the case of NAR, the results obtained with the functional method of growth analysis, based on function fitting, were easier to interpret than those obtained using the classical method.It was concluded from the results that in long-term experiments the use of the functional method of growth analysis gave a more precise evaluation of the effects of fertiliser treatments and the year on the growth of maize in the vegetative growth stage and on the mean and maximum values of growth parameters.

scholarly journals Scientific understanding of the fundamentals of China's economic development

2020 ◽  
Vol 3 (2) ◽  
pp. 285-293
Author(s):  
Taiyan Huang
Keyword(s):  
Growth Rate ◽  
Economic Development ◽  
Chinese Economy ◽  
Content Type ◽  
Economic Operation ◽  
Reform And Opening Up ◽  
The Impact ◽  
Opening Up

PurposeThe purpose of this paper is based on China’s economic fundamentals. Factor input, structural optimization and institutional reform, which determine the fundamentals of China's economic development, will actively prop up long-term, sustained and stable growth of the Chinese economy and keep China's potential economic growth rate stabilized within a reasonable growth range in the long term.Design/methodology/approachThe fundamentals of economic development of a country are the basic situation of economic operation determined by the country's main factors and the long-term trend thereof, and they have such characteristics as stability, internality and persistence.FindingsStability refers to economic operation that remains relatively stable within a reasonable growth range at a certain stage of development, and this does not rule out exceptional economic fluctuations in certain years due to the impact of unexpected short-term factors. For instance, the fundamentals of the Chinese economy during the period after the reform and opening-up are characterized by a sustained high growth rate.Originality/valueInternality refers to the intrinsic quantity and quality of all factors supporting the economic development of a country, especially the quantity and quality of the factors that play a decisive role in the economic development of a country at a specific stage. For instance, demographic dividend and capital formation have bolstered the high-speed growth of the Chinese economy since the reform and opening-up.

Conditions for the Hi-tech Complex Development

2003 ◽  
pp. 26-39
Author(s):  
V. Maevsky ◽  
B. Kuzyk
Keyword(s):  
Economic Development ◽  
Central Bank ◽  
Developed Countries ◽  
Industrial Society ◽  
Monetary Base ◽  
Complex Development ◽  
Bank System ◽  
Post Industrial

A project for the long-term strategy of Russian break-through into post-industrial society is suggested which is directed at transformation of the hi-tech complex into the leading factor of economic development. The thesis is substantiated that there is an opportunity to realize such a strategy in case Russia shifts towards the mechanism of the monetary base growth generally accepted in developed countries: the Central Bank increases the quantity of "strong" money by means of purchasing state securities and allocates the increment of money in question according to budget priorities. At the same time for the realization of the said strategy it is necessary to partially restore savings lost during the hyperinflation period of 1992-1994 and default of 1998 and to secure development of the bank system as well as an increase of the volume of long-term credits on this base.

Russian Federalism at the Critical Stage of Development

2008 ◽  
pp. 70-83 ◽  
Author(s):  
E. Bukhvald
Keyword(s):  
Economic Development ◽  
Social Processes ◽  
Self Management ◽  
Intergovernmental Fiscal Relations ◽  
Critical Stage ◽  
Municipal Reform ◽  
Stage Of Development ◽  
Social And Economic Development ◽  
Basic Course

Transformations in the sphere of federal relations concern the most important directions of the reforming processes in the country. However, not all proposed and actually developing components of the federal reform seem well-argued and corresponding to long-term, strategic interests of the Russian statehood. The basic course of reform should meet the objective requirements of further decentralization of governing economic and social processes and the need to ensure strengthening the responsibility of RF subjects’ executive bodies and local self-management for steady social and economic development of their territories. The solution of these problems calls for a new model of federal policy of regional development, specification of some important components of the municipal reform as well as inserting certain amendments into the system of intergovernmental fiscal relations in order to stir up their stimulating function.

Russia’s Development Strategy: Guidelines and Restrictions

2008 ◽  
pp. 119-130 ◽  
Author(s):  
V. Senchagov
Keyword(s):  
Economic Development ◽  
Development Strategy ◽  
Conceptual Basis ◽  
The Core ◽  
Economic Development Strategy ◽  
Socio Economic Development ◽  
Rates Of Growth

The core of Russia’s long-term socio-economic development strategy is represented by its conceptual basis. Having considered debating points about the essence and priority of the strategy, the author analyzes the logic and stages of its development as well as possibilities, restrictions and risks of high GDP rates of growth.

Economic Development in 2006 and the Future of the Russian Economy: The Non-Resource-Based Sector Potential (The Economic Report of All-Russia Business Union “Delovaya Rossiya”)

2007 ◽  
pp. 27-45
Author(s):  
B. Titov ◽  
I. Pilipenko ◽  
A. Danilov-Danilyan
Keyword(s):  
Economic Development ◽  
Free Market ◽  
Economic Report ◽  
Russian Economy ◽  
The Social ◽  
National Economic ◽  
Investment Capital ◽  
Export Industries ◽  
Sustainable Economic Growth

The report considers how the state economic policy contributes to the national economic development in the midterm perspective. It analyzes main current economic problems of the Russian economy, i.e. low effectiveness of the social system, high dependence on export industries and natural resources, high monopolization and underdeveloped free market, as well as barriers that hinder non-recourse-based business development including high tax burden, skilled labor deficit and lack of investment capital. We propose a social-oriented market economy as the Russian economic model to achieve a sustainable economic growth in the long-term perspective. This model is based on people’s prosperity and therefore expanding domestic demand that stimulates the growth of domestic non-resource-based sector which in turn can accelerate annual GDP growth rates to 10-12%. To realize this model "Delovaya Rossiya" proposes a program that consists of a number of directions and key groups of measures covering priority national projects, tax, fiscal, monetary, innovative-industrial, trade and social policies.

On Climate Change Risks of Long-Term Socio-Economic Development in Russia

2019 ◽  
pp. 79-95
Author(s):  
N.E. Terentiev
Keyword(s):  
Climate Change ◽  
Economic Development ◽  
Technological Innovation ◽  
Global Climate Change ◽  
Global Climate ◽  
Climate Risk ◽  
Climate Change Risks ◽  
Socio Economic Development ◽  
Management Policies

Based on the latest data, paper investigates the dynamics of global climate change and its impact on economic growth in the long-term. The notion of climate risk is considered. The main directions of climate risk management policies are analyzed aimed, first, at reducing anthropogenic greenhouse gas emissions through technological innovation and structural economic shifts; secondly, at adaptation of population, territories and economic complexes to the irreparable effects of climate change. The problem of taking into account the phenomenon of climate change in the state economic policy is put in the context of the most urgent tasks of intensification of long-term socio-economic development and parrying strategic challenges to the development of Russia.

Anti-Ideology of Entrepreneurship as an Attribute of Entrepreneurial Projects

2020 ◽  
Vol 26 (8) ◽  
pp. 830-839
Author(s):  
E. Ya. Litau
Keyword(s):  
Economic Development ◽  
Economic Activity ◽  
Creative Destruction ◽  
Innovative Activity ◽  
Entrepreneurial Activity ◽  
Methodological Principle ◽  
Historical Period ◽  
Professional Literature ◽  
Efficient System ◽  
The Relationship

Aim. The presented study examines and develops theoretical and methodological foundations that make it possible to distinguish innovative entrepreneurship among other economic phenomena.Tasks. The author identifies the specific features of entrepreneurship and its qualitative differences from other types of economic activity aimed at obtaining benefits, specifies the relationship between creative destruction and economic development, determines the attributes of innovative entrepreneurship.Methods. This study uses systematic analysis of professional literature on entrepreneurship to highlight the main attributes of entrepreneurial activity. The methodology of dialectical contradiction in its original Hegelian interpretation plays an important role in elaborating and substantiating the definition of entrepreneurship. The author considers innovative activity as creation of new values, which, according to the logic of dialectical development, destroy the old ones, triggering the process of economic development.Results. An approach to understanding the phenomenon of entrepreneurship is proposed, making it possible to distinguish this type of activity as significantly different from other types of economic activity, which may be externally similar but have different content. During the development of this approach, the concept of “anti-ideology” of entrepreneurship is introduced, which reflects the essence of innovative activity as a process of creative destruction. The necessary and sufficient attributes of entrepreneurial innovation are identified, making it possible to reflect the meaning of this phenomenon and verify this complex defining structural element in the system of economic relations. The study substantiates that the level of anti-ideology and public benefit can be used as criteria for assessing the significance of an entrepreneurial idea. A progressive model of anti-idea realization (PMA) is proposed based on the methodological principle. It can be used to develop an efficient system for evaluating startups within the framework of venture capitalism.Conclusions. Specification of the relationship between creative destruction and economic development is crucial to understanding the importance of innovative entrepreneurship. Each historical period creates its own demand for a specific type of entrepreneurs. The principle of anti-ideology, which lies at the heart of the PMA model, is key in identifying competitive commercial ideas, making it possible to focus resources and attention on projects that can make a significant contribution to economic development.

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