Entrepreneurship, Institutions, and Economic Growth

WAYS OF THINKING ABOUT ECONOMIC GROWTH, Roger Procter, ed., New Zealand, 2008

13 Pages Posted: 23 Sep 2008 Last revised: 26 Sep 2008

See all articles by Frederic Sautet

Frederic Sautet

The Catholic University of America (CUA) - Busch School of Business

Date Written: September 17, 2008

Abstract

This policy paper is part of a discussion series on subject of growth and economic performance at the New Zealand Ministry of Economic Development in 2004. It provides a brief view of growth and social change taken from the perspective of market process theory in order to establish the following chain of argument:

* Economic performance (i.e. growth) depends on capital accumulation. * Capital accumulation is the result of entrepreneurial profit discoveries. * Entrepreneurship is a function of the institutional makeup of a society. * Institutions (or rules) will foster entrepreneurship if their effects on (a) the noticeability and (b) the exploitability of profit opportunities are limited over time.

In order to limit the effects on the noticeability and exploitability of profit opportunities, institutions must constrain the government in its possibility to renege on its commitments.

A link to "Ways of thinking about economic growth" is available in the paper.

Keywords: Economic Growth, Entrepreneurship, Market Process, Institutions, Capital

JEL Classification: H00, O00

Suggested Citation

Sautet, Frederic E., Entrepreneurship, Institutions, and Economic Growth (September 17, 2008). WAYS OF THINKING ABOUT ECONOMIC GROWTH, Roger Procter, ed., New Zealand, 2008, Available at SSRN: https://ssrn.com/abstract=1270523

Frederic E. Sautet (Contact Author)

The Catholic University of America (CUA) - Busch School of Business ( email )

Maloney Hall
620 Michigan Ave, NE
Washington, DC 20064
United States

HOME PAGE: http://business.cua.edu/faculty/sautet.cfm

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