IDEAS home Printed from https://ideas.repec.org/a/oup/oxford/v8y1992i4p29-42.html
   My bibliography  Save this article

A New Theory of Endogenous Economic Growth

Author

Listed:
  • Scott, Maurice

Abstract

The advance of useful knowledge is widely agreed to be the key factor in explaining economic growth. While many writers have sought to distinguish between "ordinary" investment, which merely imitates existing assets, and research or educational expenditures, which result in innovation, it is argued in this article that this distinction has not been made operational for a theory of economic growth, and it is very doubtful whether it can be. Instead, it seems better to recognize that all investments consist of both one innovation after another and one imitation after another, in varying proportions which cannot in aggregate be identified. Since investment changes the world, and leads to unforeseen new investment opportunities, it results in temporary monopolies as Schumpeter pointed out. Because of these monopolistic profits, which also exist because of ordinary market imperfections, average profitability exceeds marginal profitability and there is an externality to investment, with policy implications. Copyright 1992 by Oxford University Press.

Suggested Citation

  • Scott, Maurice, 1992. "A New Theory of Endogenous Economic Growth," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 8(4), pages 29-42, Winter.
  • Handle: RePEc:oup:oxford:v:8:y:1992:i:4:p:29-42
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Yichun & Subhan, Mohammad & Ahmad, Gayas & Adil, Mohd & Zamir, M.N., 2024. "Unveiling the linkages among digital technology, economic growth, and carbon emissions: A resource management perspective," Resources Policy, Elsevier, vol. 91(C).
    2. Mike Danson & Geoff Whittam, 1998. "Clustering, innovations and trust: the essentials of a clusters strategy for Scotland," ERSA conference papers ersa98p387, European Regional Science Association.
    3. Gustav Ranis & Frances Stewart, 2000. "Strategies for Success in Human Development," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 1(1), pages 49-69.
    4. James Riedel, 2007. "The Tyranny of Numbers or the Tyranny of Methodology: Explaining the East Asian Growth Experience," Annals of Economics and Finance, Society for AEF, vol. 8(2), pages 385-396, November.
    5. Fusari, Angelo, 1994. "Paths of economic development: modelling factors of endogenous growth," MPRA Paper 75165, University Library of Munich, Germany, revised 1994.
    6. Meyer, Dietmar, 1995. "Az új növekedéselmélet [The new theory of growth]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 387-398.
    7. Maxwell Fry, 1998. "Savings, Investment, Growth and Financial Distortions in Pacific Asia and Other Developing Areas," International Economic Journal, Taylor & Francis Journals, vol. 12(1), pages 1-24.
    8. Lawrence Brunner & Michael Shields, 2006. "Estimates of learning by watching and endogenous technical progress in six OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 13(6), pages 351-354.
    9. Gustav Ranis, 2000. "Strategies for Success in Human Development," Working Papers 808, Economic Growth Center, Yale University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:8:y:1992:i:4:p:29-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oxrep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.