The paper is a review of the article, "Endogenous Innovation in the Theory of Growth" by Gene Grossman & Elhan Helpman and published in the The Journal of Economic Perspectives. 8. 1. (Winter, 1994).
# 146134 | 1,070 words | 1 source | MLA | 2010 |
Published on Dec 18, 2010 in Economics (Inflation) , Economics (Taxation) , Economics (National) , Business (Human Resources)
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The paper reviews "Endogenous Innovation in the Theory of Growth", an article written by Grossman and Helpman published in the 1994 winter edition of The Journal of Economic Perspectives that puts forward the suggestion that the best way to navigate the rocky economic trajectory towards prosperity is to encourage capital accumulation (that is, increasing the incomes of the populace and the government) but above all by developing the human capital of the nation and its citizens' technological knowledge.
From the Paper:"International exchanges and competition are a key factor in spurring indigenous development: "residents of a country that is integrated into world markets are likely to enjoy access to a larger technical knowledge base than those living in relative isolation. Trade itself may help the process of technological dissemination, if foreign exporters suggest ways that their wares can be used more productively or foreign importers indicate how local products can be made more attractive to consumers in their country...exposure to international competition may mitigate redundancy in industrial research. Whereas a firm that develops a product for a protected domestic market need only make use of technologies that are new to the local economy, one that hopes to compete in the international market- place will be forced to generate ideas that are truly innovative on a global scale" (Grossman & Helpman, 1994, p. 40). This last suggestion implies the caveat that while foreign investment and capital from global multinationals is vital, the enthusiasm and wealth sometimes generated from foreign investment must not eclipse the need to generate locally-grown economic roots within the nation. Also, the foreign companies must take an interest in the development of the nation, and provide advice rather than merely seek to use human resources to secure their own marketplace advantage in the short-term."
Sample of Sources Used:
- Grossman, Gene M. & Elhan Helpman. "Endogenous Innovation in the Theory of Growth." The Journal of Economic Perspectives. 8. 1. (Winter, 1994), pp. 23-44.
Cite this Article Review:
Advising a Developing Economy (2010, December 18) Retrieved May 26, 2020, from https://www.academon.com/article-review/advising-a-developing-economy-146134/
"Advising a Developing Economy" 18 December 2010. Web. 26 May. 2020. <https://www.academon.com/article-review/advising-a-developing-economy-146134/>