Economic Development and Growth: A Survey
10 Pages Posted: 14 May 2013
Date Written: June 14, 2009
Economic history has taken a more micro and theoretical approach. The resulting work has shed considerable light on the functioning of institutions, on which institutions matter, and to some extent on why. However, it has paid insufficient attention to the nature of the overall economic process within which institutions are embedded. What is needed, therefore, is a more Smithian understanding of the economy — one that sees it not as a machine but as an evolving organism (a biological rather than a mechanical analogy). If this can be done, a theory founded on the lessons of economic history offers the greatest promise of answering the basic questions of economic development and growth.
Keywords: institutions effect on economic growth in the United States, prerequisites for economic development
JEL Classification: O10, O11, O50
Suggested Citation: Suggested Citation