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The Evolution of Entrepreneurial Spirit and the Process of Development

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  • Galor, Oded
  • Michalopoulos, Stelios

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 contributing to the convergence of the intermediate level economies to the advanced ones.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6022.

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Date of creation: Dec 2006
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Handle: RePEc:cpr:ceprdp:6022

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Keywords: evolution; growth; natural Selection; risk Aversion; technological progress;

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Citations

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Cited by:
  1. Tacsir, Ezequiel, 2010. "Occupation Choice: Family, Social and Market Influences," MERIT Working Papers 013, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. Galor, Oded, 2009. "2008 Lawrence R. Klein Lecture -- Comparative Economic Development: Insights from Unified Growth Theory," CEPR Discussion Papers 7519, C.E.P.R. Discussion Papers.
  3. Quamrul Ashraf & Stelios Michalopoulos, 2010. "The Climatic Origins of the Neolithic Revolution Theory and Evidence," DEGIT Conference Papers c015_037, DEGIT, Dynamics, Economic Growth, and International Trade.
  4. Ashraf, Quamrul & Galor, Oded, 2008. "Dynamics and Stagnation in the Malthusian Epoch: Theory and Evidence," CEPR Discussion Papers 7057, C.E.P.R. Discussion Papers.
  5. Oded Galor, 2012. "The demographic transition: causes and consequences," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 6(1), pages 1-28, January.
  6. Tacsir, Ezequiel, 2009. "Elección de ocupación: factores personales y aspectos sociales
    [Occupation Choice: Personal factors and Social Aspects]
    ," MPRA Paper 20432, University Library of Munich, Germany.
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  8. Brian Snowdon, 2008. "Towards a Unified Theory of Economic Growth," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 9(2), pages 97-151, April.
  9. Brian Snowdon, 2008. "Towards a Unified Theory of Economic Growth: Oded Galor on the Transition from Malthusian Stagnation to Modern Economic Growth," Working Papers 2008-4, Brown University, Department of Economics.

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