Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits

31 Pages Posted: 12 Feb 2012

See all articles by Oded Galor

Oded Galor

Brown University - Department of Economics; Centre for Economic Policy Research (CEPR)

Stelios Michalopoulos

Brown University - Department of Economics; Brown University

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Abstract

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

Galor, Oded and Michalopoulos, Stelios, Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits. IZA Discussion Paper No. 6327. Available at SSRN: https://ssrn.com/abstract=2003660

Oded Galor (Contact Author)

Brown University - Department of Economics ( email )

Providence, RI 02912
United States

HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

HOME PAGE: http://www.econ.brown.edu/fac/Oded_Galor/

Stelios Michalopoulos

Brown University - Department of Economics ( email )

64 Waterman Street
Providence, RI 02912
United States

HOME PAGE: http://https://sites.google.com/site/steliosecon/

Brown University ( email )

Box 1860
Providence, RI 02912
United States

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