Far more than an intellectual puzzle for pundits, economists,
and policymakers, economic growth--its makings and workings--is a
subject that affects the well-being of billions of people around
the globe. In "The Mystery of Economic Growth," Elhanan Helpman
discusses the vast research that has revolutionized understanding
of this subject in recent years, and summarizes and explains its
critical messages in clear, concise, and accessible terms.
The tale of growth economics, as Helpman tells it, is organized
around a number of themes: the importance of the accumulation of
physical and human capital; the effect of technological factors on
the rate of this accumulation; the process of knowledge creation
and its influence on productivity; the interdependence of the
growth rates of different countries; and, finally, the role of
economic and political institutions in encouraging accumulation,
innovation, and change.
One of the leading researchers of economic growth, Helpman
succinctly reviews, critiques, and integrates current research--on
capital accumulation, education, productivity, trade, inequality,
geography, and institutions--and clarifies its relevance for global
economic inequities. In particular, he points to
institutions--including property rights protection, legal systems,
customs, and political systems--as the key to the mystery of
economic growth. Solving this mystery could lead to policies
capable of setting the poorest countries on the path toward
sustained growth of per capita income and all that that
implies--and Helpman's work is a welcome and necessary step in this
direction.
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