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
Date Written: September 17, 2008
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: Suggested Citation