Book•
The theory of economic development
01 Jan 1934-
TL;DR: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan EKonomi, kredit, laba wirausaha, bunga atas modal, and siklus bisnis as mentioned in this paper.
Abstract: Buku ini memberikan infmasi tentang aliran melingkar kehidupan ekonomi sebagaimana dikondisikan oleh keadaan tertentu, fenomena fundamental dari pembangunan ekonomi, kredit dan modal, laba wirausaha, bunga atas modal, dan siklus bisnis.
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TL;DR: The authors show that the data point to liquidity constraints: capital is essential for starting a business, and liquidity constraints tend to exclude those with insufficient funds at their disposal, and a would-be entrepreneur must bear most of the risk inherent in his venture.
Abstract: Is the capital function distinct from the entrepreneurial function in modern economies? Or does a person have to be wealthy before he or she can start a business? Knight and Schumpeter held different views on the answer to this question. Our empirical findings side with Knight: Liquidity constraints bind, and a would-be entrepreneur must bear most of the risk inherent in his venture. The reasoning is roughly this: The data show that wealthier people are more inclined to become entrepreneurs. In principle, this could be so because the wealthy tend to make better entrepreneurs, but the data reject this explanation. Instead, the data point to liquidity constraints: capital is essential for starting a business, and liquidity constraints tend to exclude those with insufficient funds at their disposal.
3,241 citations
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TL;DR: Beck, Levine, and Loayza as mentioned in this paper evaluate whether the level of development in the banking sector exerts a causal impact on economic growth and its sources- total factor productivity growth, physical capital accumulation, and private saving.
Abstract: Development of the banking sector exerts a large, causal impact on total factor productivity growth, which in turn causes GDP to grow. Whether banking development has a long-run effect on capital growth or private saving remains to be seen. Beck, Levine, and Loayza evaluate whether the level of development in the banking sector exerts a causal impact on economic growth and its sources- total factor productivity growth, physical capital accumulation, and private saving. They use (1) a pure cross-country instrumental variable estimator to extract the exogenous component of banking development and (2) a new panel technique that controls for country-specific effects and endogeneity. They find that: - Banks do exert a large, causal impact on total factor productivity growth, which feeds through to overall GDP growth. - The long-run links between banking development and both capital growth and private savings are more tenuous. This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to understand the links between the financial system and economic growth.
3,174 citations
TL;DR: Theoretical and empirical literature on mechanisms that confer advantages and disadvantages on first-mover firms are surveyed and recommendations are given for future research.
Abstract: The use of a fairly standard vehicle width of a little under 2 meters originates from the design of prehistoric carts and sleds as evidenced by rutting in ancient roads which aided in steering Despite dramatic advances in vehicular and infrastructural technologies, the standard has changed little over the millennia The gauges of railroad track, for instance, are now standardized at 4 feet 8 and half inches (1435 mm) across Europe and North America, the same as the first steam railway, and a mere half-inch wider than the typical pre-steam tracks in the mining districts near Newcastle, consistent in size with the wheel gauge used in Roman Britain This standard gauge lasted since it was first used on the Stockton and Darlington railway in 1825, and were adopted by most subsequent lines (Puffert, 2002), despite some railways trying alternatives (eg the Great Western Railway was originally built at 5 feet 6 inches, or 1676 mm) Alternative gauges would have accommodated wider, taller, and faster trains more easily, but the standard gauge that was adopted first acquired advantages as other railways sought compatibility with the standard to obtain access to the uses of earlier lines, and helped lock-in that standard
3,144 citations
TL;DR: Abrahamson et al. as discussed by the authors proposed an evolutionary model of technological change in which a technological breakthrough, or discontinuity, initiates an era of intense technical variation and selection, culminating in a single dominant design.
Abstract: The authors thank Eric Abrahamson, Warren Boeker, Donald Hambrick, and three anonymous reviewers for their assistance. An evolutionary model of technological change is proposed in which a technological breakthrough, or discontinuity, initiates an era of intense technical variation and selection, culminating in a single dominant design. This era of ferment is followed by a period of incremental technical progress, which may be broken by a subsequent technological discontinuity. A longitudinal study of the cement (1888-1980), glass (1893-1980), and minicomputer (1958-1982) industries indicates that when patents are not a significant factor, a technological discontinuity is generally followed by a single standard. Across these diverse product classes, sales always peak after a dominant design emerges. Discontinuities never become dominant designs, and dominant designs lag behind the industry's technical frontier. Both the length of the era of ferment and the type of firm inaugurating a standard are contingent on how the discontinuity affects existing competences. Eras of ferment account for the majority of observed technical progress across these three industries.'
3,131 citations
TL;DR: The authors examine how firms search, or solve problems, to create new products and find that firms position themselves in a unidimensional search space that spans a spectrum from local to distant search.
Abstract: We examine how firms search, or solve problems, to create new products. According to organizational learning research, firms position themselves in a unidimensional search space that spans a spectrum from local to distant search. Our findings in the global robotics industry suggest that firms' search efforts actually vary across two distinct dimensions: search depth, or how frequently the firm reuses its existing knowledge, and search scope, or how widely the firm explores new knowledge.
3,110 citations