Discussion paper

DP8377 Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits

This research suggests that the evolution of entrepreneurial spirit played a significant role in the process of economic development and the dynamics of inequality within and across societies. The study argues that entrepreneurial spirit evolved non-monotonically in the course of human history. In early stages of development, risk-tolerant, growth promoting traits generated an evolutionary advantage and their increased representation accelerated the pace of technological progress and the process of economic development. In mature stages of development, however, risk-averse traits gained an evolutionary advantage, diminishing the growth potential of advanced economies and contributing to convergence in economic growth across countries.

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Citation

Galor, O and S Michalopoulos (2011), ‘DP8377 Evolution and the Growth Process: Natural Selection of Entrepreneurial Traits‘, CEPR Discussion Paper No. 8377. CEPR Press, Paris & London. https://cepr.org/publications/dp8377