School of Business
Montclair State University
Upper Montclair, New Jersey 07043
The Role of Creative Innovation
in Economic Growth:
Some International Comparisons
March 2007
Phillip LeBel
Professor of Economics
School of Business
Department of Economics and Finance
Montclair State University
Upper Montclair, New Jersey 07043
Lebelp@mail.montclair.edu
Abstract
Export-driven policies in East Asia have thus far produced dramatic increases in real per
capita income. At the same time, sustainable growth requires that technological
innovation proceed at comparable rates if mutual gains from globalization are to be
realized. In this paper, we derive a measure of innovation and test the extent to which
institutional policy choices enhance or delay its diffusion. To do so we use a panel
regression model, with data on a sample of countries for the 1980-2005 period. Our
findings provide empirical evidence of the positive role of creative innovation in
economic growth, and from which we derive several basic policy conclusions.
Key words: economic growth, innovation, risk, institutional governance
JEL codes: P48, 038, D02, D73
Growth Accounting:
1. Y=f(L,K,T)
2. Y=A(K,L)
3. R=s/k
4. Y=f(S,TRDEP)
Optimal Innovation:



r
r 
 
5. U   e y( )dt   e    (t, )At x d
t 0

0
0
6.

7.


8.
( n ) t n
 (t, ) 
e
t!
A0 (L  n) a
U(n) 
r  n(  1)
1 

  1  L  n*
 
1
r  n*   1

9. g*  n* ln 


10. INNOVINDEX = (Per Capita Scientific Citations+Per Capita Net Royalty Ratio)/2
11. PPPRPCGDP = f(GNSGDP, TRDEP, RCRISK, INNOVATION)
Table 1
Global Sample Basic Growth Equations
Dependent Variable: PPPRPCGDP
Fixed
None
Fixed
None
Fixed
None
C 6,061.29
318.27
4,461.10
7,616.09
4,461.10
7,616.09
GNSGDP
8.61
235.88
3.45
56.98
3.45
56.98
t
(4.207)
(33.915)
(2.073)
(16.182)
(2.073)
(16.182)
TRDEP
28.21
33.76
14.44
14.15
14.44
14.15
t
(26.551)
(16.557)
(17.344)
(9.973)
(17.344)
(9.973)
PCSCITES
27.09
24.61
t
(55.021)
(81.988)
RCCRISK
-17.02
-139.44
-17.02
-139.44
t
(14.706)
(38.512)
(14.706)
(38.512)
INNOVINDEX
54.17
49.23
t
(55.021)
(81.988)
Adjus ted R-s quared
0.9598
0.6655
0.9781
0.8510
0.9781
0.8510
F-Statis tic
615.45
2,664.04
1,129.94
3,823.33
1,129.94
3,823.33
Number of Cros s Sections
103
103
103
103
103
103
Number of Obs ervations
2678
2678
2678
2678
2678
2678
Method
PLS
PLS
PLS
PLS
PLS
PLS
Cross -Section
Fixed
None
Fixed
None
Fixed
None
Period
None
None
None
None
None
None
GLS Weights
CS
CS
CS
CS
CS
CS
Granger null-values
GNSGDP
4.76
4.76
4.76
4.76
4.76
4.76
pr.
(0.009)
(0.009)
(0.009)
(0.009)
(0.009)
(0.009)
TRDEP
40.23
40.23
40.23
40.23
40.23
40.23
pr.
(0.000)
(0.000)
(0.000)
(0.000)
(0.000)
(0.000)
RRCCRISK
5.30
5.30
5.30
5.30
pr.
(0.005)
(0.005)
(0.005)
(0.005)
PCSCITES
16.30
16.30
pr.
(0.000)
(0.000)
INNOVINDEX
16.30
16.30
pr.
(0.000)
(0.000)
Figure 1
Expanded Model of Institutional Innovation
Global Innovation Institutional Model
PPPRPCGDP
GNSGDP
4.76 (.0087)
CORRUPAF
12.05 (.0000)
JUDINDF
5.27 (.0052)
RESIMPCOVRATIO
25.47 (.0000)
RCCRISKF
10.09 (.0000)
TRDEP
40.23 (.0000)
INNOVINDEXF
16.50 (.0000)
ECFREEF
12.28 (.0000)
FDIGDP
2.84 (.0584)
NETMIGPOPRATIO
.90 (.4049)
CORRUPAF
11.39 (.0000)
PROPRT
10.40 (.0000)
PROPRT
30.38 (.0000)
JUDINDF
23.93 (.0000)
POLRTS
7.07 (.0009)
Table 2
Global Sample Expanded Model Regression Estimates
Dependent Variable: PPPRPCGDP
Fixed
None
Fixed
None
Fixed
None
C -516.68
-98.46 4,049.27
14,818.64
739.39
15,021.03
GNSGDP
7.93
100.57
10.15
19.42
6.88
16.79
t
(3.836) (28.043)
(6.854)
(7.083) (3.291)
(5.821)
TRDEP
26.59
32.38
16.71
4.12
26.22
4.04
t (24.644) (22.825)
(21.417)
(3.800) (24.238)
(3.514)
PCSCITES
27.11
19.36
t
(54.164)
(61.734)
RCCRISKF
-13.30
-279.39
-15.39
282.78
t
(3.722)
(57.924) (3.090)
(54.758)
INNOVINDEXF
112.04
60.39
101.10
37.70
t
(7.649) (83.282)
(6.757)
(50.008)
Adjusted R-squared
0.9571
0.7506
0.9788
0.8671
0.9576
0.8098
F-Statistic
569.50 2,687.20
1,165.13
4,366.83
571.94
2,849.61
Number of Cross Sections
103
103
103
103
103
103
Number of Observations
2678
2678
2678
2678
2678
2678
Method
PLS
PLS
PLS
PLS
PLS
PLS
Cross-Section
Fixed
None
Fixed
None
Fixed
None
Period
None
None
None
None
None
None
GLS Weights
CS
CS
CS
CS
CS
CS
Granger null-values
GNSGDP
4.76
4.76
4.76
4.76
4.76
4.76
pr.
(0.009)
(0.009)
(0.009)
(0.009) (0.009)
(0.009)
TRDEP
40.23
40.23
40.23
40.23
40.23
40.23
pr.
(0.000)
(0.000)
(0.000)
(0.000) (0.000)
(0.000)
RCCRISKF
10.10
10.10
10.10
10.10
pr.
(0.000)
(0.000) (0.000)
(0.000)
PCSCITES
16.30
16.30
pr.
(0.000)
(0.000)
INNOVINDEXF
16.50
16.50
16.50
16.50
pr.
(0.000)
(0.000)
(0.000)
(0.000)
Table 3
Expanded Model Regional Regression Estimates
Dependent VariablePPPRPCGDP
Global
Africa
C 15,221.50
1,487.01
GNSGDP
16.83
29.54
TRDEP
RCCRISKF
INNOVINDEXFA
Adjusted R-Squared
F-Statistic
Panel Number
Effects specification
CS
Period
Weights
Granger null F-Values
GNSGDP
Pr.
T RDEP
Pr.
RCCRISKF
Pr.
INNOVINDEXF
Pr.
Asia
CACARIB
13,400.41 5,492.98
13.37
5.60
WEurope EEurope
20,408.98 11,168.31
214.33
40.90
MENAf
3,684.88
32.85
(5.758)
(12.450)
(3.209)
(9.174)
(65.437)
(17.989)
(17.765)
3.82
6.16
28.23
7.05
48.74
4.46
25.21
(3.251)
(7.681)
(22.468)
(17.449)
(116.200)
(4.616)
(45.170)
-286.73
-23.11
-458.38
-39.50
-384.99
-272.43
-63.61
(54.368)
(6.590)
(31.465)
(26.870)
(140.401)
(24.351)
(12.924)
37.54
267.35
6283.58
207.30
61.85
2367.92
618.46
(49.814)
0.8166
2862.14
103
(74.139)
0.9268
2737.07
30
(22.700)
0.9982
10568.36
13
(33.022)
0.9992
26310.19
17
(22.002)
0.9990
117019.20
11
(13.046)
0.9651
1884.21
13
(46.885)
0.9860
5065.68
12
None
None
CS
None
None
CS
Fixed
None
CS SUR
Fixed
None
CS SUR
None
None
CS SUR
None
None
CS SUR
None
None
CS SUR
4.76
(0.009)
40.23
(0.000)
10.10
(0.000)
16.50
(0.000)
14.48
(0.000)
13.09
(0.000)
16.62
(0.000)
14.42
(0.000)
9.53
(0.000)
4.62
(0.011)
3.84
(0.023)
10.86
(0.000)
4.13
(0.017)
1.68
(0.188)
12.53
(0.000)
1.10
(0.334)
3.52
(0.030)
18.40
(0.000)
0.15
(0.857)
16.41
(0.000)
0.23
(0.794)
1.81
(0.165)
3.06
(0.049)
1.39
(0.252)
0.08
(0.925)
4.65
(0.010)
0.84
(0.431)
0.56
(0.574)
Table 4
Absolute Effect of a One-time One-Unit Change in
Independent Variables on PPP Real Per Capita GDP
Absolute change in Model Variable: Global Africa As ia CACARIB WEurope EEurope M ENAf
POLRTS1
$187
$14
$379
$194
$3,052
$144
$95
PROPRT1
$308
$103
$319
$227
$509
$1,286
$257
RESIMPCOVRATIO1
$283
$125
$231
$81
$427
$279
$394
FDIGDP1
$14
$106
$243
$22
$409
$283
$93
GNSGDP1
$75
$30
$15
$27
$622
$41
$33
TRDEP1
$0
$6
$30
$29
$456
$4
$25
1 Unit Increase in MIGPOPGRATIO
$60
$100
$59
$24
$419
$36
$14
1 Unit Decrease in RRCRISKF
$283
$126
$425
$81
$679
$297
$64
1 Unit Increase in INNOVINDEXFA
$38
$267 $6,209
$223
$469
$2,368
$618
Global Mean Predicted Base PPPRPCGDP $8,128 $1,944 $8,025
$5,408
$23,427
$7,157 $5,096
Table 5
Relative Effects of a One-time One-Unit change in
Independent Variables on PPP Real Per Capita GDP
Relative change: Global Africa
Asia CACARIB WEurope EEurope MENAf
POLRTS1 2.30% 0.71% 4.72%
3.58%
13.03%
2.01% 1.87%
PROPRT1
3.79% 5.29% 3.97%
4.20%
2.17%
17.97%
5.04%
RESIMPCOVRATIO1
3.49% 6.45% 2.87%
1.50%
1.82%
3.90% 7.73%
FDIGDP1 0.18% 5.45% 3.03%
0.40%
1.74%
3.96% 1.82%
GNSGDP1 0.92% 1.52% 0.19%
0.51%
2.65%
0.57% 0.64%
TRDEP1 0.01% 0.32% 0.37%
0.53%
1.95%
0.06% 0.49%
1 Unit Increase in MIGPOPGRATIO 0.74% 5.13% 0.74%
0.44%
1.79%
0.51% 0.27%
1 Unit Decrease in RRCRISKF 3.49% 6.48% 5.30%
1.49%
2.90%
4.15% 1.25%
1 Unit Increase in INNOVINDEXFA 0.46% 13.75% 77.36%
4.13%
2.00%
33.08% 12.14%
Table 6
Present Value Effects of One-Time One-Unit Changes in
Independent Variables on PPP Real Per Capita GDP
Global
PV at Mean Rate of Interest 6.31%
POLRTS1: $2,965
PROPRT1: $4,888
RESIMPCOVRATIO1: $4,493
FDIGDP1:
$226
GNSGDP1: $1,189
TRDEP1:
$7
1 Unit Increase in MIGPOPGRATIO: $951
1 Unit Decrease in RRCRISKF: $4,492
1 Unit Increase in INNOVINDEXFA $595
Africa
10.30%
$135
$998
$1,217
$1,028
$287
$60
$968
$1,223
$2,596
Asia
CACARIB WEurope EEurope
MENAf
4.88%
7.46%
3.10%
11.77%
4.14%
$7,763
$2,598
$98,404
$1,223
$2,303
$6,526
$3,046
$16,427
$10,923
$6,200
$4,720
$1,091
$13,775
$2,372
$9,518
$4,986
$291
$13,173
$2,407
$2,237
$311
$367
$20,052
$347
$793
$615
$386
$14,713
$38
$609
$1,208
$321
$13,517
$308
$337
$8,710
$1,083
$21,902
$2,525
$1,536
$127,143
$2,992
$15,136
$20,114 $14,937
Table A-1
Variable Definitions and Sources
Scale
Vari able
Vari able Symbol
Lowes t Highes t
Defi nition
Poli tic al Ri ghts
POLRT S A supportive meas ure of democ ratic insti tutions. 1.00
7.00 Freedom Hous e, Freedom in the W orld
Property Rights
PROPRT A measure of the s trength of ec onomic freedom 1.00
5.00 T he Heri tage Foundation, T he Index of Ec onomi c Freedom
J udici al Independenc e
J UDINDA measure of the s trength of ec onomic freedom 1.00
10.00 T he Heri tage Foundation, T he Index of Ec onomi c Freedom
Economi c Freedom
ECFREE T he aggregate index of ec onomic freedom
1.00
5.00 T he Heri tage Foundation, T he Index of Ec onomi c Freedom
Res erve Import Coverage RatioRESIMPCOVRAT IORati o of Reserves to Imports
0.00
1.00 T he W orld Bank, W orld Development Indi cators
Foreign Direct Investment to GDP Ratio
FDIGDP Rati o of FDI to GDP
0.00
1.00 T he W orld Bank, W orld Development Indi cators
Net Mi gration to Population RatioNET MIGPOPRAT IONet Offic ial Mi gration to Population
negati ve pos itive T he W orld Bank, W orld Development Indi cators
Revised Country Composite Ris k
RCCRISK An Index of Political, Ec onomic , Financial,
0.00 100.00 ICRG, as reported by the W orld Bank, and re-s caled
and Envi ronmental Country Risk
Nati onal Saving Rate
GNSGDP Rati o of National Saving to GDP
negati ve pos itive T he W orld Bank, W orld Development Indi cators
T rade Dependency Rati o
T RDEP Rati o of Exports and Imports to GDP
0.00 pos itive T he W orld Bank, W orld Development Indi cators
Per Capi ta Sc ientific Ci tations
PCSCIT ESPer capita Sc ientific Citati ons
0.00 pos itive T he W orld Bank, W orld Development Indi cators
Innovation Index
INNOVINDEXAverage of per c apita sc ienti fic ci tations
0.00 pos itive T he W orld Bank, W orld Development Indi cators
and netroyalty ratio
PPP per capita Real GDP
PPPRPCGDP Real per capita GDP
pos itive pos itive T he W orld Bank, W orld Development Indi cators
at Purc hasi ng Power Parity Rates
Real interes t Rate
REALINRAT EReal disc ount rate of central bank in a country.negati ve pos itve T he W orld Bank, W orld Development Indi cators
Corruption Index
CORRUPA Corruption Perceptions Index, inverted sc ale
0.00
10.00 Corruption Perceptions Index, Inc.
Table A-2
Expanded Regional Model
2005 Mean Original and Predicted Values
Global
103
Africa
Asia
CACARIB
13
17
WEurope
EEurope
MENAf
Panel number
30
17
11
12
Original Values
POLRTS
4.8641
3.7667
4.2308
5.7059
7.0000
1.4558
2.3333
PROPRT
2.9107
2.3933
2.7692
2.5294
4.5882
3.3000
2.1667
JUDIND
5.1332
4.6963
5.2170
4.7220
7.6163
4.5296
3.4200
ECFREE
2.0085
1.5532
1.8377
2.0065
2.9135
1.8995
1.5108
RESIMPCOVRATIO
4.6408
4.3266
6.9832
4.8464
1.8222
0.7988
7.3979
FDIGDP
3.1164
3.0106
1.9420
3.0580
4.6752
0.0009
1.9623
NETMIGPOPRATIO 0.0000566 -0.0015440 0.0056350 -0.0059000
0.0146620 0.0024150 -0.0016480
RCCRISK
29.12
38.69
27.94
31.10
15.94
33.46
27.83
GNSGDP
19.7955
12.9247
30.8755
18.2433
23.2020
26.9792
22.0137
TRDEP
77.5171
64.3841
89.8601
65.9278
93.0468
73.2015
70.4656
INNOVINDEX
71.3280
2.5644
1.0440
4.5358
7.8070
2.9488
2.0193
PPPRPCGDP $10,652.78
$2,377.57
$9,270.38
$6,313.38
$30,405.65
$6,568.80
$6,126.92
REALINRATE
6.3069
10.3003
4.8831
7.4590
3.1015
-11.7728
4.1405
Predicted Values
JUDINDF
5.0928
4.5202
5.0446
4.5043
7.8508
4.1275
3.4695
CORRUPAF
6.0196
7.2585
6.5947
6.9075
2.5777
6.4242
7.2696
ECFREEF
1.9193
1.4461
1.7626
1.9631
2.7434
1.9380
1.2750
RCCRISKF
34.9219
43.5928
32.9869
38.8303
17.0240
34.4199
38.8532
INNOVINDEXF
60.3168
2.5644
1.0640
4.4257
7.6219
1.6622
2.2360
PPPRPCGDPF $8,065.11
$1,946.76
$8,025.12
$5,393.44
$23,834.80
$7,157.50
$5,096.00
Table A-3
Estimating Equations for Revised Expanded Global Model
Dependent Variable
C
POLRTS
JUDIND CORRUPA
4.84
0.05
9.79
ECFREE
4.50
RCCRISK INNOVINDEX
55.02
48.75
PPPRPCGDP
15021.03
(8.941)
PROPRT
JUDINDF
-0.13
0.03
(5.178)
(2.018)
-0.67
-9.31
(9.210)
CORRUPAF
(3.717)
-0.44
5.29
(6.144)
(2.003)
RESIMPCOVRATIO
-0.98
(19.950)
ECFREEF
5.25
(3.721)
FDIGDP
0.48
(12.717)
NETMIGPOPRATIO
11.85
(2.058)
MIGPOPGRATIO
RCCRISKF
-219.58
(22.199)
GNSGDP
24.34
(3.307)
TRDEP
10.91
(4.875)
INNOVINDEXF
47.65
(44.050)
INNOVINDEXF1
Adjusted R-Squared
0.9954
F-Statistic 5,607.85
Number of Cross-Sections 103.00
Number of Observ ations
2678
Method
PLS
Ef f ects
Cross-section
Fixed
Period
None
GLS Weights
CS
Granger F-Null v alues
POLRTS
7.07
Pr.
(0.001)
PROPRT
Pr.
JUDINDF
Pr.
CORRUPAF
Pr.
RESIMPCOVRATIO
Pr.
ECFREEF
Pr.
FDIGDP
Pr.
NETMIGPOPRATIO
Pr.
MIGPOPGRATIO
Pr.
RCCRISKF
Pr.
GNSGDP
Pr.
TRDEPF
Pr.
INNOVINDEXF
Pr.
0.9935
3,923.36
103.00
2678
PLS
0.9963
6,886.84
103.00
2678
PLS
0.8843
195.81
103.00
2678
PLS
0.9199
293.84
103.00
2678
PLS
0.8545
4,053.53
103.00
2678
TSPLS
Fixed
None
CS
Fixed
None
CS
Fixed
None
CS
Fixed
None
CS
None
Fixed
CS
30.38
(0.000)
23.93
(0.000)
10.41
(0.000)
6.79
(0.001)
5.27
(0.005)
12.05
(0.000)
25.47
(0.000)
12.28
(0.000)
2.84
(0.058)
0.90
(0.405)
10.10
(0.000)
7.91
(0.000)
27.51
(0.000)
16.50
(0.000)
Table A-4
List of Countries Used in Regional Panel Analyses
South
America and
Middle East and
Global
Africa
Asia
West Europe
East Europe
the
North Africa
Caribbean
Mexico
Benin Bangladesh
Belize
Austria
Albania
Iran, Islamic Rep.
Canada
Botswana
China
Costa Rica
Belgium
Bulgaria
Lebanon
United States
Burkina Faso
India
El Salvador
Denmark
Czech Republic
Oman
+ all others
C.Af. Republic Indonesia
Guatemala
Finland
Estonia
Qatar
Cameroon
Japan
Honduras
France
Hungary Syrian Arab Republic
Chad Korea, Rep.
Nicaragua
Germany
Latvia
Turkey
Congo, Dem. Rep.
Malaysia
Panama
Greece
Lithuania
Yemen, Rep.
Congo, Rep.
Pakistan
Argentina
Ireland
Poland
Egypt, Arab Rep.
Cote d'Ivoire Philippines
Bolivia
Italy
Romania
Libya
Ethiopia Singapore
Brazil
Luxembourg
Slovak Republic
Tunisia
Gabon
Sri Lanka
Chile
Netherlands Russian Federation
Algeria
Ghana
Thailand
Colombia
Norway
Morocco
Guinea
Vietnam
Ecuador
Portugal
Kenya
Paraguay
Spain
Madagascar
Peru
Sweden
Malawi
Uruguay
Switzerland
Mali
Venezuela, RB United Kingdom
Mauritania
Mauritius
Mozambique
Niger
Nigeria
Senegal
South Africa
Sudan
Tanzania
Togo
Uganda
Zam bia
Zimbabwe
103
30
13
17
17
11
12
References
• Acemoglu, Daron, Simon Johnson, and James A. Robinson (2001). "The
Colonial Origins of Comparative Development: An Empirical Investigation,"
American Economic Review, 91, pp. 1369-1401.
• Aghion, Philippe and Peter Howitt (1992). “A Model of Growth through
Creative Destruction.” Econometrica 60: 323-51.
• Aghion, Philippe and Peter Howitt (1996). “Research and Development in the
Growth Process,” Journal of Economic Growth 1: 49-73.
• Aghion, Philippe and Jean Tirole (1994). “The Management of Innovation.”
Quarterly Journal of Economics 109: 1185-1209.
• Arrow, Kenneth J. (1962). “The Economic Implications of Learning by
Doing.” Review of Economic Studies 29(1): 155-173.
• Arrow, Kenneth J. and Mordecai Kurz (1970). Public Investment, the Rate of
Return, and Optimal Fiscal Policy. (Baltimore: The Johns Hopkins
University Press).
• Barro, Robert J. and Xavier Sala-I-Martin (1995). Economic Growth. (New
York: McGraw-Hill Publishing).
• Berthélemy, Jean-Claude, and A. Varoudakis (1996). “Economic Growth,
Convergence Clubs, and the Role of Financial Development.” Oxford
Economic Papers 48: 300-328.
•
•
•
•
•
•
•
•
•
•
•
Bordo, Michael, Alan M. Taylor, and Jeffrey G. Williamson (2003). Globalization in
Historical Perspective. (Chicago, Illinois: University of Chicago Press for the
NBER).
Burns, T. and G. Stalker (1966). The Management of Innovation. (London: Tavistock
Publishing).
Burnside, Craig and David Dollar (2004). “Aid, Policies, and Growth: Revisiting the
Evidence,” World Bank Policy Research Working Paper, WPS3251. (Washington,
D.C.: The World Bank).
Chenery, Hollis, and Moises Syrquin (1975). Patterns of Development. (New York:
Oxford University Press).
David, Paul A. (1975). Technical Choice, Innovation and Economic Growth.
(Cambridge, U.K.: Cambridge University Press).
DeMello, Luiz (1999). "Foreign Direct Investment-Led Growth: Evidence from Time
Series and Panel Data," Oxford Economic Papers, 51:1 (January), pp. 133-151.
Denison, Edward (1962). The Sources of Economic Growth. (Washington, D.C.:
Committee on Economic Development).
Granstrand, Olve (1999). The Economics and Management of Intellectual Property:
Towards Intellectual Capitalism. (Northampton, Mass.: Edward Elgar Publishers).
Grossman, Gene M. and Elhanan Helpman (1991). Innovation and Growth in the
Global Economy (Cambridge, Mass.: MIT Press).
Jorgenson, Dale W. (1995). Productivity. (Cambridge, Mass.: MIT Press).
Jorgenson, Dale, Frank M. Gollop, and Barbara M. Fraumeni (1987). Productivity and
U.S. Economic Growth. (Cambridge, Mass.: Harvard University Press).
•
•
•
•
•
•
•
•
•
•
Kaufmann, Daniel, Aart Kraay, and Massimo Mastruzzi (2003). "Governance Matters
III: Governance Indicators for 1996-2002," World Bank Policy Research Working
Paper 3106. (Washington, D.C.: The World Bank).
LeBel, Phillip (2005). "Optimal Choices for Risk Management: The Economic Value
of institutional Reform in Globalizing Economies," Global Business and Finance
Review, 10:3 (2005), 113-128.
Leibenstein, Harvey (1966). “Allocative Efficiency vs. X-Efficiency.” American
Economic Review 56: 391-415.
Levine, Ross (1997). "Financial Development and Economic Growth: Views and
Agenda," Journal of Economic Literature, 35:2, pp. 688-725.
Mauro, Paolo, Nathan Sussman, and Yishay Yafeh (2006). Emerging Markets and
Financial Globalization: Sovereign Bond Spreads in 1870-1913 and Today. (New
York: Oxford University Press.
Olson, Mancur (1982). The Rise and Decline of Nations: Economic Growth,
Stagflation, and Social Rigidities. (New Haven: Yale University Press).
Perotti, R. (1996). “Growth, Income Distribution, and Democracy: What the Data
Say.” Journal of Economic Growth 1(2): 149-187.
Porter, Michael E. (1990). The Competitive Advantage of Nations. (New York: The
Free Press).
Rajan, Raghuram and Arving Subramanian (2006). "Aid and Growth: What Does the
Cross-Country Evidence Really show? NBER Working Paper No. 11513 (Cambridge,
Mass.: National Bureau of Economic Research).
Rosenberg, Nathan (1976). Perspectives on Technology. (New York.:Cambridge
University Press).
• Rostow, Walt W. (1971, 1960). The Stages of Economic Growth, second
edition. (New York: Cambridge University Press).
• Saint-Paul, (G. (1992) and T. Verdier (1993). “Education, Democracy and
Growth.” Journal of Development Economics 42(2): 399-407.
• Schmookler, Jacob (1966). Invention and Economic Growth. (Cambridge,
Mass.: Harvard University Press).
• Schumpeter, Joseph A. (1982, 1934, 1913). The Theory of Economic
Development, reprint of 1934 translation from German original by Redvers
Opie. (New Brunswick, New Jersey: Transactions Books).
• Smith, Adam (1985, 1776). An Inquiry into the Nature and Causes of the
Wealth of Nations. (New York: Modern Library).
• Solow, Robert M. (1957). “Technical Change and the Aggregate Production
Function.” Review of Economics and Statistics 39: 312-320.
• Solow, Robert M. (1956) “A Contribution to the Theory of Economic
Growth.” Quarterly Journal of Economics 70(1): 65-94.
• von Hippel, Eric (1988). Sources of Innovation. (New York: Oxford
University Press).
•
Williamson, Oliver (1985). The Economic Institutions of Capitalism: Firms, Markets,
Relational Contracting. (New York: The Free Press).