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Economic Growth Theory in the Twenty-First Century

Author

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  • Orlando Gomes

    (Lisbon Accounting and Business School – Lisbon Polytechnic Institute (ISCAL- IPL) and CEFAGE (EÌ vora University - ISCAL) research center)

Abstract

Economic growth theory studies the dynamic forces and complex interac- tions that enable societies to progressively increase their material well-being. Neoclassical and endogenous growth models, of the 1950s-1960s and of the 1980s-1990s, respectively, are unanimously recognized as the main building blocks of this theory. Notwithstanding, recent academic work has been able to contribute, as well, with important new insights, which have decisively strengthened and refreshed the theory. This selective survey of up-to-date literature on growth theory highlights some of the most recent essential con- tributions for the discipline, offering a critical assessment about its current state and prospects for its future development.

Suggested Citation

  • Orlando Gomes, 2023. "Economic Growth Theory in the Twenty-First Century," Annals of Economics and Finance, Society for AEF, vol. 24(1), pages 39-67, May.
  • Handle: RePEc:cuf:journl:y:2023:v:24:i:1:gomes
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    References listed on IDEAS

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    1. Alessandra Fogli & Laura Veldkamp, 2021. "Germs, Social Networks, and Growth [Unbundling Institutions]," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(3), pages 1074-1100.
    2. Ufuk Akcigit & Douglas Hanley & Nicolas Serrano-Velarde, 2021. "Back to Basics: Basic Research Spillovers, Innovation Policy, and Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 88(1), pages 1-43.
    3. Robert E. Lucas Jr. & Benjamin Moll, 2014. "Knowledge Growth and the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 1-51.
    4. Gersbach, Hans & Sorger, Gerhard & Amon, Christian, 2018. "Hierarchical growth: Basic and applied research," Journal of Economic Dynamics and Control, Elsevier, vol. 90(C), pages 434-459.
    5. Daron Acemoglu & Ufuk Akcigit & Douglas Hanley & William Kerr, 2016. "Transition to Clean Technology," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 52-104.
    6. Pietro Peretto & Simone Valente, 2015. "Growth on a finite planet: resources, technology and population in the long run," Journal of Economic Growth, Springer, vol. 20(3), pages 305-331, September.
    7. William Brock & M. Taylor, 2010. "The Green Solow model," Journal of Economic Growth, Springer, vol. 15(2), pages 127-153, June.
    8. Stanislao Gualdi & Antoine Mandel, 2019. "Endogenous growth in production networks," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 91-117, March.
    9. Andreas Irmen, 2021. "Automation, growth, and factor shares in the era of population aging," Journal of Economic Growth, Springer, vol. 26(4), pages 415-453, December.
    10. Dosi, Giovanni & Roventini, Andrea & Russo, Emanuele, 2019. "Endogenous growth and global divergence in a multi-country agent-based model," Journal of Economic Dynamics and Control, Elsevier, vol. 101(C), pages 101-129.
    11. Daron Acemoglu & Ufuk Akcigit & Harun Alp & Nicholas Bloom & William Kerr, 2018. "Innovation, Reallocation, and Growth," American Economic Review, American Economic Association, vol. 108(11), pages 3450-3491, November.
    12. Charles I. Jones & Christopher Tonetti, 2020. "Nonrivalry and the Economics of Data," American Economic Review, American Economic Association, vol. 110(9), pages 2819-2858, September.
    13. Daron Acemoglu & James A. Robinson & Thierry Verdier, 2017. "Asymmetric Growth and Institutions in an Interdependent World," Journal of Political Economy, University of Chicago Press, vol. 125(5), pages 1245-1305.
    14. Ufuk Akcigit & William R. Kerr, 2018. "Growth through Heterogeneous Innovations," Journal of Political Economy, University of Chicago Press, vol. 126(4), pages 1374-1443.
    15. Jess Benhabib & Jesse Perla & Christopher Tonetti, 2014. "Catch-up and fall-back through innovation and imitation," Journal of Economic Growth, Springer, vol. 19(1), pages 1-35, March.
    16. Philippe Aghion & Ufuk Akcigit & Peter Howitt, 2015. "The Schumpeterian Growth Paradigm," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 557-575, August.
    17. Gene M. Grossman & Elhanan Helpman, 2018. "Growth, Trade, and Inequality," Econometrica, Econometric Society, vol. 86(1), pages 37-83, January.
    18. William D. Nordhaus, 2021. "Are We Approaching an Economic Singularity? Information Technology and the Future of Economic Growth," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 299-332, January.
    19. Prettner, Klaus & Strulik, Holger, 2020. "Innovation, automation, and inequality: Policy challenges in the race against the machine," Journal of Monetary Economics, Elsevier, vol. 116(C), pages 249-265.
    20. Cong, Lin William & Wei, Wenshi & Xie, Danxia & Zhang, Longtian, 2022. "Endogenous growth under multiple uses of data," Journal of Economic Dynamics and Control, Elsevier, vol. 141(C).
    21. Boyan Jovanovic & Sai Ma, 2022. "Uncertainty and Growth Disasters," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 44, pages 33-64, April.
    22. Ufuk Akcigit, 2017. "Economic Growth: The Past, the Present, and the Future," Journal of Political Economy, University of Chicago Press, vol. 125(6), pages 1736-1747.
    23. Nancy Stokey, 2021. "Technology and Skill: Twin Engines of Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 12-43, April.
    24. Jesse Perla & Christopher Tonetti, 2014. "Equilibrium Imitation and Growth," Journal of Political Economy, University of Chicago Press, vol. 122(1), pages 52-76.
    25. Daron Acemoglu & Ufuk Akcigit & Murat Alp Celik, 2022. "Radical and Incremental Innovation: The Roles of Firms, Managers, and Innovators," American Economic Journal: Macroeconomics, American Economic Association, vol. 14(3), pages 199-249, July.
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    More about this item

    Keywords

    Economic growth; Optimal growth theory; Innovation; Agent heterogeneity; Propagation of ideas; Automation and artificial intelligence;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

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