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And Schumpeter Said, "This is How Thou Shalt Grow": Further Quest for Economic Growth in Poor Countries
Author: Mr. Philippe Beaugrand
Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 040
Language:
English
Publication Date:
01 Mar 2004
DOI:
https://doi.org/10.5089/9781451846003.001
ISBN:
9781451846003
ISSN:
1018-5941
Pages:
22
Keywords:
WP; country; economic growth; Net creditors country; per capita income; Developing Countries; Growth; Innovation; Entrepreneurship; Schumpeter, J.A.; poor country; diminishing returns; nonfuel exporter; circular flow; returns to scale; Self-employment; Personal income; Oil; Sub-Saharan Africa; Asia and Pacific; Africa; Middle East
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The paper reviews the “stylized facts” on economic growth gathered by Easterly and Levine in their 2001 joint paper and illustrates some of the points made on the basis of data from the IMF’s World Economic Outlook on real growth and per capita GDP since 1970. The data show that the growth performance of many poor countries has been disappointing: most of the “developing” world, especially sub-Saharan Africa, has been getting poorer while the advanced economies have been getting richer. To reverse this trend requires finding ways to raise total factor productivity in poor countries; in turn, this implies letting entrepreneurs innovate—in the Schumpeterian sense—in order to bring about structural changes in the economy. The conclusion highlights several essential steps in creating a favorable environment for innovation and growth.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund

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