Models of endogenous economic growth typically assume that aggregate production is characterised by increasing returns to scale, often as a result of the accumulation of physical and human capital. In this paper, an international data‐set on formal educational attainments is used to...

Nicholas Georgescu‐Roegen’s analysis of the factory system is used to show how an expanded market makes possible increasing returns in manufacturing, which can in turn lead to the kind of cumulative growth process envisioned by Allyn Young. The analysis is then extended to take into account...

Presents a model that is suitable for evaluating not only the total effects of financial intermediation on economic growth, but also the channels through which the effects are brought about. These two channels are: the externality of financial on the real sector and the inter‐sectoral...

The purpose of this paper is to understand how the effect of the government size per capita on the steady‐state level of output and on the growth rate differs between LDC’s and developed countries. It is shown that an increase in government size will increase the steady‐state level of...

This paper examines and analyses the TFPG performance of individual service industries in Singapore. TFPG of services were highly cyclical, indicating the overwhelming vagaries of external demand in this small and open economy. Although the TFPG of most services were dismal during 1976‐93, the...

This paper attempts to trace and describe the role played by the government sector – the state – in promoting economic growth in Western societies since the Renaissance. One important conclusion is that the antagonism between state and market, which has characterised the twentieth century,...

Adam Smith’s theory of economic growth, as presented in the Wealth of Nations, is based upon the potential for increasing returns in manufacturing generated by increased specialization and division of labour and upon the accumulation of real capital, which is necessary to support the greater...

Immiserizing growth is impossible when the growing country follows ationally optimal policies and the growth stimulates no foreign reaction. However, this solution may leave other nations with sub‐optimal policies, and it may lead to a global misallocation of resources. It is demonstrated that...