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Growth Theory

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  • Boyan Jovanovic

Abstract

Growth theory offers two plausible explanations of growth. One stresses the supply of productive ideas and holds that the industrial revolution had to wait until we had thought up enough inventions to lift us into the era of modern growth. It says, roughly, that the growth of living standards depends on the growth of science. The other explanation stresses incentives: Growth could begin only when hard work and business enterprise were free of heavy taxation, of social stigma and of other interference by the government and the church. The first branch of theory is well developed; it is the second that now challenges the growth economist to explain not just growth, but the evolution of political and religious institutions and social attitudes as well.

Suggested Citation

  • Boyan Jovanovic, 2000. "Growth Theory," NBER Working Papers 7468, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7468
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    References listed on IDEAS

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    Cited by:

    1. Easterly, William, 2001. "The Middle Class Consensus and Economic Development," Journal of Economic Growth, Springer, vol. 6(4), pages 317-335, December.
    2. Rehme, Gunther, 2006. "Redistribution and economic growth in integrated economies," Journal of Macroeconomics, Elsevier, vol. 28(2), pages 392-408, June.
    3. Surfield, Christopher J., 2008. "Information Technology and Economic Performance: A Global Analysis," MPRA Paper 14009, University Library of Munich, Germany.
    4. Bouton, L. & Sumlinski, M.A., 2000. "Trends in Private Investment in Developing Countries. Statistics for 1970-1998," Papers 41, World Bank - International Finance Corporation.
    5. Takawira Tyavambiza, 2017. "Corruption and Bad Policies Repel Foreign Capital and Cause Domestic Capital to Flee: Is Jovanovic Right?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 204-215.
    6. Lawrence Bouton & Mariusz A. Sumlinski, 2000. "Trends in Private Investment in Developing Countries : Statistics for 1970-1998," World Bank Publications - Books, The World Bank Group, number 13986.
    7. Furquim, Lilian de Toni & Garcia, Fernando, 2001. "Inequality and economic growth in Latin," Textos para discussão 104, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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