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Entrepreneur's Apropriability: A Review of the Rodriks Model "Growth Diagnostics"

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  • Brankovic, Boban
  • Vukovic, Darko
  • Jovovic, David

Abstract

Entrepreneurs often claim a smaller benefit than realized, ie, rate of return on investment of entrepreneurs is low. This means that there is sufficient social capital to provide adequate infrastructure and processing investment, but there is a problem of entrepreneurs appropriability. Low appropriability, which reduces the appropriation of entrepreneurs profit, may be caused to the failure of the government or the market. Appropriability risks arised from the failure of government policy, could be devided as a macro risks and micro risks of appropriability. Маcro risks of appropriability related to macroeconomic instability are divided into: financial, monetary and fiscal instability. Мicro risks of appropriability аrise by corruption, insufficient protection of property rights and the negative impact of the tax system.

Suggested Citation

  • Brankovic, Boban & Vukovic, Darko & Jovovic, David, 2012. "Entrepreneur's Apropriability: A Review of the Rodriks Model "Growth Diagnostics"," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 58(2), June.
    • Handle: RePEc:ags:sereko:288770
    DOI: 10.22004/ag.econ.288770
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    Financial Economics;

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