Evolution and the growth process: Natural selection of entrepreneurial traits

Abstract

This research suggests that a Darwinian 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.

Agency culture, constitutional provisions and entrepreneurship: a cross-country analysis

“…Both of the views outlined above are consistent with the idea that the reason why countries with similar economic fundamentals differ in entrepreneurial activity may ultimately be found in cultural and institutional differences (Guiso et al, 2003;Stuetzer et al, 2016). The positions of Audretsch and Thurik (2000) and Galor and Michalopoulos (2012) can therefore be reconciled within a broader line of investigation, which spans from Diamond (1997) to Robinson (2012) (cf. also Saxenian, 1994;Acemoglu et al, 2001;Autio et al, 2014).…”

“…On the other side, Galor and Michalopoulos (2012) suggest that entrepreneurial spirit has evolved non-monotonically in the course of history, through a Darwinian process. In the early stages of a country's development, risk-tolerant entrepreneurial traits proved successful in promoting technological progress and economic development, whereas in mature stages of development, risk-averse traits prevailed, diminishing the growth potential of advanced economies.…”

The Agricultural Origins of Time Preference

“…3 Bowles (1998), Bisin and Verdier (2000), Galor and Moav (2002), Rapoport and Vidal (2007), Doepke and Zilibotti (2008), and Galor and Michalopoulos (2012) explore additional mechanisms that may govern the evolution of preferences. Moreover, Dohmen et al (2012) establish empirically the presence of intergenerational transmission of risk aversion and trust and the importance of socialization in this transmission process.…”

Left-Handedness and Economic Development

“…First, we contribute to the research looking at economic performance and natural selection along the development process, pioneered by Galor and Moav (2002) and developed by Lagerlöf (2007), Galor (2011) and Galor and Michalopoulos (2012), among others. We share with these papers the idea that there is a two-way interaction between economic factors and the distribution of genetic traits in the population.…”