The Role of Entrepreneurship in Economic Growth
Undergraduate Economic Review
Volume 6 | Issue 1
Article 7
2010
The Role of Entrepreneurship in Economic
Growth
Daniel Smith
University of North Carolina at Chapel Hill, danielsm@email.unc.edu
Recommended Citation
Smith, Daniel (2010) "The Role of Entrepreneurship in Economic Growth," Undergraduate Economic Review: Vol. 6: Iss.
1, Article 7.
Available at: http://digitalcommons.iwu.edu/uer/vol6/iss1/7
This Article is brought to you for free and open access by the Economics Department at Digital Commons @ IWU. It has been accepted for inclusion in Undergraduate Economic Review by an authorized administrator of Digital Commons @ IWU. For more information, please contact sdaviska@iwu.edu.
©Copyright is owned by the author of this document.
Smith: The Role of Entrepreneurship in Economic Growth
Introduction
One of the most important goals of contemporary economics is determining the factors that cause economic growth. Traditional neoclassical theory holds that the economic growth of a country is determined by the supplies of both labor and capital the country possesses and the level of technology present in that country (Todaro and Smith, p.129). Some neoclassical economists have suggested that both knowledge and pro-market government policies also have a significant influence on economic growth (Audretsch and Kielbach, p. 605;
Todaro and Smith, p. 130). The level of technology in a given society is heavily dependent on the level of knowledge in that society; this paper will regard these two factors as essentially the same. The established neoclassical factors of economic growth are thus the levels of capital and labor present in a given society, the level of knowledge (or technology) present in that society, and the extent to which the government of that society pursues pro-market government policies. However, this model ignores any direct effect that entrepreneurship may have on economic growth.
This paper will provide evidence that entrepreneurship should be
Volume 6 | Issue 1
Article 7
2010
The Role of Entrepreneurship in Economic
Growth
Daniel Smith
University of North Carolina at Chapel Hill, danielsm@email.unc.edu
Recommended Citation
Smith, Daniel (2010) "The Role of Entrepreneurship in Economic Growth," Undergraduate Economic Review: Vol. 6: Iss.
1, Article 7.
Available at: http://digitalcommons.iwu.edu/uer/vol6/iss1/7
This Article is brought to you for free and open access by the Economics Department at Digital Commons @ IWU. It has been accepted for inclusion in Undergraduate Economic Review by an authorized administrator of Digital Commons @ IWU. For more information, please contact sdaviska@iwu.edu.
©Copyright is owned by the author of this document.
Smith: The Role of Entrepreneurship in Economic Growth
Introduction
One of the most important goals of contemporary economics is determining the factors that cause economic growth. Traditional neoclassical theory holds that the economic growth of a country is determined by the supplies of both labor and capital the country possesses and the level of technology present in that country (Todaro and Smith, p.129). Some neoclassical economists have suggested that both knowledge and pro-market government policies also have a significant influence on economic growth (Audretsch and Kielbach, p. 605;
Todaro and Smith, p. 130). The level of technology in a given society is heavily dependent on the level of knowledge in that society; this paper will regard these two factors as essentially the same. The established neoclassical factors of economic growth are thus the levels of capital and labor present in a given society, the level of knowledge (or technology) present in that society, and the extent to which the government of that society pursues pro-market government policies. However, this model ignores any direct effect that entrepreneurship may have on economic growth.
This paper will provide evidence that entrepreneurship should be
Bibliography: 14, No.5, 2004, 605–616. 2005, 1191-1202. Economics, Vol. 93, No.1, 2008, 114-125. No.4, 2008, 595-602. Journal of Economics, Vol.70, No.1, 1956, 65-94. Pitlik, Hans. “The Path of Liberalization and Economic Growth.” Kyklos, Vol.29, No.1, 2002, 57-79. Harvard University Press, 1934. Boston, MA: Addison Wesley, 2008. Economics, Vol. 29, No.4, 2007, 351-382. Published by Digital Commons @ IWU, 2010 17