Schumpeter’s Theory of Economic Development: A Study of the Creative Destruction and Entrepreneurship Effects on the Economic Growth
Journal of Insurance and Financial Management, Vol 4, No 3 (2021)
17 Pages Posted: 16 Apr 2018 Last revised: 31 Jan 2022
Date Written: June 21, 2017
This paper provides a multifaceted review and analysis of the Schumpeter’s Theory of Economic Development and specifically the creative destruction effect intertwined with the business cycles, and their effectiveness in explaining the long-run economic growth by first, looking into the main features of this theory; second, comparing the fundamental similarities and differences of Schumpeter theory with respect to Marxism and Keynesianism, third; a comparison of “Schumpeter” effect vs. the “refugee” effect in recent published researches, and finally, the relationship of Schumpeterian and Kirznerian opportunities in modern entrepreneurship.
Keywords: Schumpeter, Creative Destruction, Capitalism, Kirznerian, Marxism, Keynesianism, Economic Growth, Business Cycle, Entrepreneurship
JEL Classification: A12, B13, B31, B52
Suggested Citation: Suggested Citation