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Endogenous Growth, Productivity and Economic Policy: A Progress Report

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  • Peter Howitt

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Abstract

In recent years, our understanding of the sources of growth has been strongly influenced by endogenous growth theory. In the first article, Peter Howitt of Brown University, one of the leading researchers in the field, provides a progress report on the current state of the endogenous growth literature. Among the many policy insights discussed by Howitt are that policies fostering technology transfer provide countries with the ability to converge to the productivity growth rate of the technological leaders; that educational attainment, the health of the population, public infrastructure and tax policy are all important drivers of productivity growth; and that competition policy can actually spur innovation and hence growth through a variety of channels, including a desire on the part of firms to escape competition by remaining at the technological frontier.

Suggested Citation

  • Peter Howitt, 2004. "Endogenous Growth, Productivity and Economic Policy: A Progress Report," International Productivity Monitor, Centre for the Study of Living Standards, vol. 8, pages 3-15, Spring.
  • Handle: RePEc:sls:ipmsls:v:8:y:2004:1
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, Oxford University Press, vol. 120(2), pages 701-728.
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    5. Charles I. Jones, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 495-525.
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    8. Philippe Aghion & Mathias Dewatripont & Patrick Rey, 1999. "Competition, Financial Discipline and Growth," Review of Economic Studies, Oxford University Press, vol. 66(4), pages 825-852.
    9. Helpman, Elhanan & Trajtenberg, Manuel, 1994. "A Time to Sow and a Time to Reap: Growth Based on General Purpose Technologies," CEPR Discussion Papers 1080, C.E.P.R. Discussion Papers.
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    27. Philippe Aghion & Christopher Harris & Peter Howitt & John Vickers, 2001. "Competition, Imitation and Growth with Step-by-Step Innovation," Review of Economic Studies, Oxford University Press, vol. 68(3), pages 467-492.
    28. Peter Klenow & Andrés Rodríguez-Clare, 1997. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?," NBER Chapters,in: NBER Macroeconomics Annual 1997, Volume 12, pages 73-114 National Bureau of Economic Research, Inc.
    29. Peter Howitt, 2000. "Endogenous Growth and Cross-Country Income Differences," American Economic Review, American Economic Association, vol. 90(4), pages 829-846, September.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Carlo Vercellone, 2008. "La thèse du capitalisme cognitif : une mise en perspective historique et théorique," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00401880, HAL.
    2. Lamia YACOUB, 2009. "La politique économique dans la mondialisation : de la récusation au renouveau (The economic policy in the globalization : from the denial in the revival)," Working Papers 211, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    3. Fidel Perez-Sebastian, 2012. "Understanding R&D Policy: Efficiency or Politics?," Review of Economics and Institutions, Università di Perugia, vol. 3(3).
    4. Andrew Atkeson & Ariel Burstein, 2011. "Aggregate implications of innovation policy," Staff Report 459, Federal Reserve Bank of Minneapolis.
    5. Priit Vahter, 2006. "Productivity in Estonian enterprises: the role of innovation and competition," Bank of Estonia Working Papers 2006-07, Bank of Estonia, revised 11 Dec 2006.
    6. Andrew Sharpe, 2007. "Lessons for Canada from International Productivity Experience," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 20-37, Spring.
    7. repec:bla:devpol:v:35:y:2017:i:3:p:315-336 is not listed on IDEAS

    More about this item

    Keywords

    Productivity; Macroeconomic Policy; Investment; Competition; Research and Development; Endogenous Growth; Growth; Endogenous; Scale Effect; Patents; General Purpose Technologies;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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