30 Pages Posted: 9 May 2011
Date Written: May 3, 2011
This research suggests that a Darwinian evolution of entrepreneurial spirit played a significant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human history. In early stages of development, risk-tolerant, growth promoting traits generated an evolutionary advantage and their increased representation accelerated the pace of technological progress and the process of economic development. In mature stages of development, however, risk-averse traits gained an evolutionary advantage, diminishing the growth potential of advanced economies and contributing to convergence in economic growth across countries.
Keywords: Risk Aversion, Growth, Technological Progress, Evolution, Natural Selection
JEL Classification: O11, O14, O33, O40, J11, J13
Suggested Citation: Suggested Citation
Galor, Oded and Michalopoulos, Stelios, Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits (May 3, 2011). MIT Department of Economics Working Paper No. 11-07. Available at SSRN: https://ssrn.com/abstract=1831783 or http://dx.doi.org/10.2139/ssrn.1831783