A brief history of Economic development - The great waves of Technological change
3 important questions on A brief history of Economic development - The great waves of Technological change
What are the two types of economic growth characterised by a sustained increase of output per person, but with a very distant underlying dynamic?
1. Endogenous growth: Growth of the world's technological leaders (19th:England, 1950:Germany, 20th: US) -> technological advance - one innovation led to new ones.
2. Catch up growth: Growth of laggards that lagged behind from the technological leaders. - China, import technologies from abroad rather than developing them at home.
2. Catch up growth: Growth of laggards that lagged behind from the technological leaders. - China, import technologies from abroad rather than developing them at home.
What is endogenous growth?
Economic advances emerge from the internal workings of the economy. Endogenous= something that arises from within a system, rather then from the outside. - a technological breakthrough raises GDP, which in turn raises the incentives (drijfveer) of new innovations.
What is catch up growth?
Growth of laggards countries that lagged behind from the technological leaders. / import technologies from abroad rather than developing themselves. They still have to be adapted to the local conditions but not invented and tested - can be faster than endogenous growth.
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