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Scale effects in Schumpeterian models of economic growth

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Author Info
Elias Dinopoulos (Department of Economics, University of Florida, Gainesville, FL 32611, USA)
Peter Thompson (Department of Economics, University of Houston, Houston, TX 77204-5882, USA)

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Abstract

Early models of Schumpeterian growth incorporate scale effects predicting that large economies grow faster than small economies, and that population growth causes accelerating per capita income growth. An absence of clear empirical evidence for these scale effects has led some researchers to question the foundations underlying the Schumpeterian approach to growth. This paper reviews empirical evidence on the relationship between scale and growth, and recent attempts to construct Schumpeterian growth models without scale effects.

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Publisher Info
Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 9 (1999)
Issue (Month): 2 ()
Pages: 157-185
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Handle: RePEc:spr:joevec:v:9:y:1999:i:2:p:157-185

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Related research
Keywords: Economic growth R&D Scale effects

Find related papers by JEL classification:
O2 - Economic Development, Technological Change, and Growth - - Development Planning and Policy
O3 - Economic Development, Technological Change, and Growth - - Technological Change

Cited by:
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  1. Fidel Pérez Sebastián, 2001. "Growth And Public Support To Innovation And Imitation," Working Papers. Serie AD 2001-31, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  2. Oscar Afonso & AGUIAR, Alvaro, 2004. "Human Capital Accumulation and Wage Inequality with Scale-Independent North-South Technological Diffusion," DEGIT Conference Papers c009_026, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  3. Nevin Cavusoglu & Edinaldo Tebaldi, 2006. "Evaluating growth theories and their empirical support: An assessment of the convergence hypothesis," Journal of Economic Methodology, Taylor and Francis Journals, vol. 13(1), pages 49-75, March. [Downloadable!] (restricted)
  4. Rao, B. Bhaskara & Tamazian, Artur & Singh, Rup & Vadlamannati, Krishna Chaitanya, 2008. "Financial developments and the rate of growth of output: An alternative approach," MPRA Paper 8605, University Library of Munich, Germany. [Downloadable!]
  5. Giammario Impullitti, 2007. "International Schumpeterian Competition and Optimal R&D subsidies," Economics Working Papers ECO2007/55, European University Institute. [Downloadable!]
  6. Alberto BUCCI, 2004. "An inverted-U relationship between product market competition and growth in an extended Romerian model," Departemental Working Papers 2004-26, Department of Economics University of Milan Italy. [Downloadable!]
  7. Guido Cozzi, 2003. "The Self-fulfilling International Allocation of Innovation," Levine's Bibliography 666156000000000189, UCLA Department of Economics. [Downloadable!]
  8. Luca, SPINESI, 2005. "Rent-Seeking Bureaucracies in a Schumpeterian Endogenous Growth Model : Effects on Human Capital Accumulation, Inequality and Growth," Université catholique de Louvain, Département des Sciences Economiques Working Paper 2005027, Université catholique de Louvain, Département des Sciences Economiques. [Downloadable!]
  9. Dinopoulos, Elias & Segerstrom, Paul, 2006. "North-South Trade and Economic Growth," CEPR Discussion Papers 5887, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  10. Guido Cozzi & Luca Spinesi, 2004. "Information Transmission and the Bounds to Growth," Topics in Economic Analysis & Policy, Berkeley Electronic Press, vol. 4(1), pages 1168-1168. [Downloadable!] (restricted)
  11. Óscar Afonso & Álvaro Aguiar, 2005. "Price-Channel Effects of North-South Trade on the Direction of Technological Knowledge and Wage Inequality," FEP Working Papers 170, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  12. Bianco, Dominique, 2007. "An Endogenous Growth Model with Embodied Technical Change without Scale Effects," MPRA Paper 6571, University Library of Munich, Germany, revised 04 Jan 2008. [Downloadable!]
  13. Dinopoulos, Elias & Segerstrom, Paul, 2003. "A Theory of North-South Trade and Globalization," CEPR Discussion Papers 4140, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Bart Los, 2001. "Endogenous Growth and Structural Change in a Dynamic Input–Output Model," Economic Systems Research, Taylor and Francis Journals, vol. 13(1), pages 3-34, March. [Downloadable!] (restricted)
  15. Oscar Afonso & Alvaro Aguiar, 2003. "Non-Scale Effects of North-South Trade on Economic Growth," DEGIT Conference Papers c008_013, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  16. Pol, Eduardo & Carroll, Peter, 2004. "Innovation Heterogeneity, Schumpeterian Growth and Evolutionary Theorizing," Economics Working Papers wp04-21, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
  17. Volker Grossmann, 2004. "How to Promote R&D-based Growth? Public Education Expenditure on Scientists and Engineers versus R&D Subsidies," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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  18. Carl-Johan Dalgaard & Martin Kaae Jensen, 2007. "Life Cycle Savings, Bequest, and the Diminishing Impact of Scale on Growth," Discussion Papers 07-17, University of Copenhagen. Department of Economics. [Downloadable!]
  19. Christopher A. Laincz & Pietro F. Peretto, 2004. "Scale Effects, An Error of Aggregation Not Specification: Empirical Evidence," DEGIT Conference Papers c009_037, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
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