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Unified Growth Theory Contradicted by the Economic Growth in the Former USSR

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  • Ron W Nielsen

Abstract

Historical economic growth in countries of the former USSR is analysed. It is shown that Unified Growth Theory is contradicted by the data, which were used, but not analysed, during the formulation of this theory. Unified Growth Theory does not explain the mechanism of economic growth. It explains the mechanism of Malthusian stagnation, which did not exist and it explains the mechanism of the transition from stagnation to growth that did not happen. Unified Growth Theory is full of stories but it is hard to decide which of them are reliable because they are based on unprofessional examination of data. The data show that the economic growth in the former USSR was never stagnant but hyperbolic. Industrial Revolution did not boost the economic growth in the former USSR. Unified Growth Theory needs to be revised or replaced by a reliable theory to reconcile it with data and to avoid creating the unwarranted sense of security about the current economic growth.

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  • Ron W Nielsen, 2015. "Unified Growth Theory Contradicted by the Economic Growth in the Former USSR," Papers 1512.06309, arXiv.org, revised Feb 2016.
    • Handle: RePEc:arx:papers:1512.06309
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    References listed on IDEAS

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    1. Oded Galor & Omer Moav, 2002. "Natural Selection and the Origin of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1133-1191.
    2. Oded Galor, 2011. "Unified Growth Theory and Comparative Development," Rivista di Politica Economica, SIPI Spa, issue 2, pages 9-21, April-Jun.
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