By Jose Antonio Ocampo
'Beyond Reforms' argues that monetary progress in constructing international locations is intrinsically tied to the dynamics of creation constructions, to the explicit regulations and associations created to aid it, and the production of linkages between family agencies and sectors. averting macroeconomic instability can also be crucial. in spite of the fact that, macroeconomic balance isn't really a adequate situation for development. the wider institutional context and the sufficient provision of schooling and infrastructure are crucial 'framework conditions,' yet commonly don't play a right away function in bringing approximately adjustments within the momentum of financial progress.
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Additional resources for Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability (Latin American Development Forums)
This link is crucial to understanding the dynamics of aggregate productivity growth in developing countries, and indicates why it is largely a result of dynamic economic growth rather than its cause. Moreover, it implies that there may be a divergence between micro and aggregate productivity trends. Indeed, the fact that some economic agents may be experiencing rapid productivity growth at the firm level, as a result of the incentives generated by a competitive environment or of their own learning efforts, does not necessarily mean that aggregate productivity will show the same degree of progress.
See Easterly (2001, part II). 6. There may also be intermediate alternatives: Some factors may not “cause” growth in the sense of accelerating the growth momentum, but can block it. Indeed, this is the case of macroeconomic stability, as has already been pointed out. 7. The divergence of experience is brought about in a novel and forceful way in Pritchett (2000). 8. For example, some of the important differences in per capita income within Latin America were established in the early 20th century and have been remarkably stable since then (Cárdenas, Ocampo, and Thorp 2000a, ch.
A common feature of the first four forms of innovation is that they involve the creation of knowledge or, more precisely, of the capacity to apply it to production. They thus stress the role of knowledge, mediated by a competitive process, as a source of market power. Viewed from this perspective, success in economic development can be seen as the ability to create enterprises that are capable of learning and appropriating knowledge and, in the long run, of generating new knowledge (Amsden 2001; Lall 2003).
Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability (Latin American Development Forums) by Jose Antonio Ocampo