Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits
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
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