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Is Learning a Wonder Weapon of Endogenous Economic Growth?

Author

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  • Péter Mihályi

    (Corvinus University of Budapest, Central European University)

Abstract

This essay attempts to refute the practicality of the main policy propositions of the book by Joseph Stiglitz and Bruce Greenwald (S&G) entitled Creating a Learning Society. More specifically, it looks at the 700-page scholarly work from the perspective of countries struggling to catch up with the advanced Western countries. In the opinion of the author, S&G use the term “learning” in such a broad sense that it becomes almost meaningless as an explanatory factor and/or an objectively verifiable indicator. Equally important, by using such a value-loaded, entirely positive term like “learning”, S&G create a misleading feeling in the readers: catching-up is easy (win-win). As history has shown, it is not easy. In the paper, the model of a lesser known Hungarian economist, Ferenc Jánossy (1914–1997), is presented as a more convincing explanation of endogenous economic growth.

Suggested Citation

  • Péter Mihályi, 2019. "Is Learning a Wonder Weapon of Endogenous Economic Growth?," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 18(2), pages 117-139.
    • Handle: RePEc:mnb:finrev:v:18:y:2019:i:2:p:117-139
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    References listed on IDEAS

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    More about this item

    Keywords

    Infant industry; learning-by-doing; labour productivity; endogenous growth; Washington consensus;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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