And Schumpeter Said, "This is How Thou Shalt Grow": Further Quest for Economic Growth in Poor Countries

March 1, 2004

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Format: Chicago

Philippe Beaugrand. And Schumpeter Said, "This is How Thou Shalt Grow": Further Quest for Economic Growth in Poor Countries, (USA: International Monetary Fund, 2004) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper reviews the “stylized facts” on economic growth gathered by Easterly and Levine in their 2001 joint paper and illustrates some of the points made on the basis of data from the IMF’s World Economic Outlook on real growth and per capita GDP since 1970. The data show that the growth performance of many poor countries has been disappointing: most of the “developing” world, especially sub-Saharan Africa, has been getting poorer while the advanced economies have been getting richer. To reverse this trend requires finding ways to raise total factor productivity in poor countries; in turn, this implies letting entrepreneurs innovate—in the Schumpeterian sense—in order to bring about structural changes in the economy. The conclusion highlights several essential steps in creating a favorable environment for innovation and growth.

Subject: Commodities, Labor, National accounts, Oil, Personal income, Self-employment

Keywords: Africa, Asia and Pacific, Circular flow, Country, Developing Countries, Diminishing returns, Economic growth, Entrepreneurship, Growth, Innovation, J.A., Middle East, Net creditors country, Nonfuel exporter, Oil, Per capita income, Personal income, Poor country, Returns to scale, Schumpeter, Self-employment, Sub-Saharan Africa, WP

Publication Details

Pages:

22
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2004/040
Stock No:

WPIEA0402004
ISBN:

9781451846003
ISSN:

1018-5941

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