Download this Paper Open PDF in Browser

The Evolution of Entrepreneurial Spirit and the Process of Development

49 Pages Posted: 21 Apr 2006  

Oded Galor

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

Stelios Michalopoulos

Brown University - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: April 18, 2006

Abstract

This research suggests that the evolution of entrepreneurial spirit played a significant role in the process of economic development and the evolution 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, the rise in income generated an evolutionary advantage to entrepreneurial, growth promoting traits and their increased representation accelerated the pace of technological advancements and the process of economic development. Natural selection therefore had magnified growth promoting activities in relatively wealthier economies as well as within the upper segments of societies, enlarging the income gap within as well as across societies. In mature stages of development, however, non-entrepreneurial individuals gained an evolutionary advantage, diminishing the growth potential of advanced economies and contribution to the convergence of the intermediate level economies to the advanced ones.

Keywords: Entrepreneurial Spirit, Risk Aversion, Growth, Technological Progress, Evolution, Natural Selection

JEL Classification: O11, O14, O33, O40, J11, J13

Suggested Citation

Galor, Oded and Michalopoulos, Stelios, The Evolution of Entrepreneurial Spirit and the Process of Development (April 18, 2006). Available at SSRN: https://ssrn.com/abstract=897495 or http://dx.doi.org/10.2139/ssrn.897495

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)

77 Bastwick Street
London, EC1V 3PZ
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/

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Paper statistics

Downloads
613
rank
35,984
Abstract Views
2,786