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Enabling Economic Growth

Olsson, Per (2009)
Department of Economics
Abstract
In this thesis I argue that the absence of energy utilization as a component in contemporary economic history and economic growth theory severely limits our understanding of economic development as a process. Although energy is not sufficient to explain the unprecedented expansion in the world economy since the industrial revolution, it is however absolutely necessary. Technological progress remains the direct cause of economic growth in the long run, but innovativeness must be facilitated by economically beneficial institutions. There is a broad consensus about institutions as the engine behind long term growth. My intention is not to challenge that notion, but I want to stress that pinpointing those exact benign institutions has proven... (More)
In this thesis I argue that the absence of energy utilization as a component in contemporary economic history and economic growth theory severely limits our understanding of economic development as a process. Although energy is not sufficient to explain the unprecedented expansion in the world economy since the industrial revolution, it is however absolutely necessary. Technological progress remains the direct cause of economic growth in the long run, but innovativeness must be facilitated by economically beneficial institutions. There is a broad consensus about institutions as the engine behind long term growth. My intention is not to challenge that notion, but I want to stress that pinpointing those exact benign institutions has proven to be very difficult. And even when we accept institutions as central to economic growth, one question remains: What has caused the differences in institutional outcomes across the globe? It has been widely suggested that competition is the key to institutional development, but I will argue that a purely quantitative outlook on competition does not explain institutional outcomes. Instead I suggest a more qualitative approach in the concept of contextual dynamism. (Less)
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author
Olsson, Per
supervisor
organization
year
type
M2 - Bachelor Degree
subject
keywords
economic growth, institutions, energy, contextual dynamism, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1485060
date added to LUP
2009-09-21 00:00:00
date last changed
2010-08-03 10:52:48
@misc{1485060,
  abstract     = {In this thesis I argue that the absence of energy utilization as a component in contemporary economic history and economic growth theory severely limits our understanding of economic development as a process. Although energy is not sufficient to explain the unprecedented expansion in the world economy since the industrial revolution, it is however absolutely necessary. Technological progress remains the direct cause of economic growth in the long run, but innovativeness must be facilitated by economically beneficial institutions. There is a broad consensus about institutions as the engine behind long term growth. My intention is not to challenge that notion, but I want to stress that pinpointing those exact benign institutions has proven to be very difficult. And even when we accept institutions as central to economic growth, one question remains: What has caused the differences in institutional outcomes across the globe? It has been widely suggested that competition is the key to institutional development, but I will argue that a purely quantitative outlook on competition does not explain institutional outcomes. Instead I suggest a more qualitative approach in the concept of contextual dynamism.},
  author       = {Olsson, Per},
  keyword      = {economic growth,institutions,energy,contextual dynamism,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Enabling Economic Growth},
  year         = {2009},
}