In this paper, we review the literature on declining business dynamism and its implications in United States propose a unifying theory to analyze symptoms potential causes of decline. We first highlight 10 pronounced stylized facts related documented discuss some existing attempts explain them. then describe theoretical framework endogenous markups, innovation, competition that can potentially ...

Developing countries such as Indonesia have the ambition to carry out structural transformations in order increase their economic growth. The transformation of economy from low-productivity agriculture high-productivity industrialization is seen a prerequisite for achieving sustainable growth, but there are concerns about impact on environment, especially context carbon emissions and climate ch...

We examine the conceptualization of entrepreneurs in neo-Schumpeterian growth theory, which has reintroduced into mainstream economics. Specifically, we analyze how neo-Schumpeterians relate to contradiction between entrepreneur-centered view Schumpeter (1934) and entrepreneurless framework (1942), with two frameworks entailing vastly different economic policy implications. The analysis is base...

All models of sustained growth are linear in some sense, and the endogenous growth literature can be read as the search for the appropriate linear differential equation. Linearity is a “crucial” assumption, in the sense used by Solow (1956), and it therefore seems reasonable to ask that this assumption have an intuitive and compelling justification. This paper proposes that such a justification...

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with MNCs, e.g. the Grossman-Helpman model, assume away the knowledge-spillovers aspect of FDI. We also presen...

Introduction 1.1 There has been a flowering of theoretical literature in “ new” or endogenous growth theory in the last decade, primarily motivated by the divergent growth experiences of different countries, which the neoclassical growth theory of the Solow (1956)-Swan (1956) genre is incapable of addressing. The path-breaking works of Romer (1986, 1990), Lucas (1988), Prescott and Boyd (1987),...

The paper proposes a new test of endogenous vs. exogenous growth theories based on the Granger-causality methodology and applies it to a panel of 20 OECD countries. The test yields divergent evidence with respect to physical and human capital. For physical capital, the test results favor Solow-type exogenous growth theory over AK-type endogenous growth models. On the other hand, the test result...

This paper studies a generalization of the Schumpeterian models with endogenous market structure that allows the overall production structure to be more than linear in the growthdriving factor and yet generates endogenous growth, defined as steady-state, constant, exponential growth of income per capita. This version of modern growth theory, therefore, is robust in the sense that its key result...

The paper proposes a new test of endogenous vs. exogenous growth theories based on the Granger-causality methodology and applies it to a panel of 20 OECD countries. The test yields divergent evidence with respect to physical and human capital. For physical capital, the test results favor Solow-type exogenous growth theory over AK-type endogenous growth models. On the other hand, the test result...