Top PDF The Theory of Economic Development of J A Schumpeter: Key Features

The Theory of Economic Development of J A  Schumpeter: Key Features

The Theory of Economic Development of J A Schumpeter: Key Features

Paradoxical development of Schumpeter’s economic theory concerns the category of credit in terms of its impact on genuine economic development. The conclusion is that, in economic sense, credit is reasonable only if it is granted to an innovative entrepreneur that forces the economic system into new channels. Furthermore, it is the only way (granting of a credit) that economic development can arise from the stationary circular flow in perfect equilibrium. An exceptional sense of a credit system to sustain boom of the prosperity of a country stems out of the said argument. Another conclusion, which is overwhelming to many people, is derived from that only credit funds granted against future benefits can become a financial resource of the innovational process. This responds to the ‘eternal’ question addressed by politicians and most experts regarding a possibility to implement an innovation-based model of economic growth “Where shall we take money for innovational development from?” The typical answer, or at least typical for Ukraine, is that, let’s say, we first need to develop in the production structure that exists today, accumulate money and afterwards invest the money so accumulated in the innovational development. The actual practice shows so far that such logic is wrong, because innovation funds are not accumulated, and the innovation is extinguished. Schumpeter’s answer is th at new combinations provide financial resources on their own by creating a new purchasing power of entrepreneurs to introduce innovations. In this case it is important, however, that such innovations are true, but not an imitation to be reported.
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Teaching and Learning Schumpeter: A Dialogue Between Professor and Student

Teaching and Learning Schumpeter: A Dialogue Between Professor and Student

Wake Forest University owns a property, referred to as the Flow House, in Vienna, Austria where professors and students live year-round on study abroad programs. Professor Dalton’s course, “The Life and Economics of Joseph A. Schumpeter,” was offered at the Flow House during the summer of 2018. Living in Vienna afforded the students the opportunity to better contextualize Schumpeter’s early life. For example, the first assignment of the course required students to take “Schumpeter Selfies” around the city at locations central to Schumpeter’s upbringing and education. The von K´eler apartment where Schumpeter grew up, the Theresianum where he went to school, and the University of Vienna where he began his economics education in earnest can all be visited today. The Arkadenhof of the University of Vienna contains plaques of Carl Menger, Friedrich von Wieser, and Eugen von B¨ohm-Bawerk, which can be used to facilitate discussion about the early Austrian School of economics and the intellectual environment in which Schumpeter began his career as an economist. Indeed, a course on Austrian Economics has been taught at the Flow House before (see McCannon (2011) for details). Although Professor Dalton designed the Schumpeter course with the Flow House and Vienna in mind, the content of the course would not be substantially changed if taught elsewhere. For example, Professor Dalton led a student reading group on Wake Forest’s campus in the spring of 2018 which contained the same content from The Theory of Economic Development and Capitalism, Socialism and Democracy as that in the course in Vienna. Professor Dalton plans to offer the course on campus in the future.
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Education and Human Capital Effect on Malaysian Economic

Education and Human Capital Effect on Malaysian Economic

John Stuart Mill was heavily influenced by David Ricardo. Mill concentrates on the variables such as, capital accumulation, population growth and technology. He agrees on the existences of diminishing return, division of labor and government’s role in contributing towards economic growth. He views capital as a future production that exists from the previously accumulated stock. He also states that not all capital is needed to be employed at once. The division of labor shows that capital equipment can be fully utilized in order to gain more returns to the extent of invention and capital accumulation (Stanley and Randy, 2007). 2.2. Theories of Economic Growth and Development There are few important models in this thinking. The Harrod-Domar growth model of development economics states that economic growth rate depends on the level of saving and capital output ratio. Schumpeter growth theory explains on quality improving innovations to replace previous technology and by prospective of monopoly rent. Harror-Domar model states the importance of forming capital by rising economic growth and output capacity. 2.3. Neo-classical Theories
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Schumpeter, the Banking System, and Innovation: Small versus Big Business

Schumpeter, the Banking System, and Innovation: Small versus Big Business

Joseph Sc humpeter’s writings on entrepreneurship and innovation ha ve had a profound impact on economic theory and economic thought. Schumpeter initially saw the small entrepreneur as the source of innovation and economic growth within an economic system but later saw large corporations as the source of much innovation. Because large corporations, and in modern times many governments and universities as well, play such a large role in funding research and development and new innovations, much of the bank financing of innovation is done by smaller banks for small entrepreneurs and their ideas. Venture capitalists and self-financing are the other two major forms of small entrepreneur/small business financing. Meanwhile, the financial markets (stocks and bond markets) only indirectly play a role in funding the innovation of large corporations via changes in these firms’ stock prices. Changes in stock prices reflect an estimate of the large firms’ research and development efforts and their prospects for profitable, future innovation. Much corporate research and development is financed internally within the organization as an expense of doing business. Meanwhile, government and university funding through tax dollars and non-profit sources indirectly subsidize corporate innovation because governmental entities and universities take on risks that the private sector will often not tolerate. Yet, large corporations are often the beneficiaries of such governmental and university financing of research and development efforts. In today’s times, Schumpeter would be impressed with the success of large firms regarding innovation but probably would be disappointed about the marginalization of the small entrepreneurial firm and the banking system and their diminished roles in innovation. This paper summarizes Schumpeter’s views on how the banking system and financial markets could play a role in innovation and explains how a modern day monopoly capital system (Baran and Sweezy 1966) and its financial system have transformed entrepreneurship and innovation away from small business and innovation by the small entrepreneur.
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Schumpeter and the History of Economic Thought

Schumpeter and the History of Economic Thought

Economic theory does business differently. Just as in theoretical physics, the economy cannot move forward without resorting to models to reproduce certain aspects of reality and takes as given certain assumptions to reach conclusions according to shared procedures. In this case it common ground if we refer to conjectures, postulates, axioms or theorems, that which allows us to assume certain principles. A statement may appear in economy -depending on the problem in question- as principle, axiom or theorem. However, although the hypotheses of this kind are suggested by the facts, strictly speaking, are creations of scientific rationality to explain certain phenomena. Differ from the assumptions of the first class that do not contain the final results pose interesting research themselves; in economy these hypotheses are mere instruments or tools built with aim of achieving interesting results. Moreover, the construction of such assumptions do not work conforms theoretical economist, just as the development of statistical hypothesis does not exhaust the theoretical work in statistics. No less important is to hire other records where you can have the results of the hypotheses, and conceptual grounds (eg "marginal rate of production," "marginal productivity", "value", "multiplier" or "accelerator") relations concepts and methods to manipulate these relationships, none of which is hypothetical. The sum total of those records, without forgetting the recursive assumptions, actual is the task of the economist.
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On the Truly Noncooperative Game of Island Life: Introducing a Unified Theory of Value & Evolutionarily Stable Island Economic Development Strategy

On the Truly Noncooperative Game of Island Life: Introducing a Unified Theory of Value & Evolutionarily Stable Island Economic Development Strategy

The decision to bridge the gap (that is, the Northumberland Strait) was by no means universally popular, however... Prominent islanders like Betty Howatt campaigned vigorously against the bridge—because she saw ‘a loosening of the social fabric in the province’ and claimed that ‘people no longer have that sense of place that they once had…’ In a January 1988 plebiscite, 40 percent of islanders voted against a fixed link. For many of these, a fixed attachment was a violation of a natural order of things; a forced and permanent alternation of an intimate and fundamental spatiality… A key perceived threat was to the impact that a bridge would have on the island's unique and distinct ‘way of life.’ The latter may escape definition, although Ansel Ferguson, an island fisherman, describes it as ‘a little more friendliness, a little more community, a little less crime…’ Critics argued that easy access to the island province would damage the tranquility, natural beauty and charm of island life. Islanders did not want the green fields and red soil to be tarnished by the hotdog stands and jukebox joints that would transform the place into another Coney Island... A fixed connection would allow New Brunswick and Nova Scotia firms to truck their products more efficiently to PEI, as well as encourage Islanders to go shopping in such places as Moncton or Halifax, undercutting the island's smaller producers and retail outlets. Fishers complained that any solid structure in the strait would affect fish stocks, shellfish beds and especially lobster (116:329).
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Marx and Schumpeter : A Comparison of their Theories of Development

Marx and Schumpeter : A Comparison of their Theories of Development

This completes our discussion of Marx’s theory of economic development. The second part of Marx’s project consists of showing that economic change leads to social changes, more specifically, that economic development will ultimately result in the demise or breakdown of capitalism and the establishment of a socialist order. As the general features of this aspect of Marx’s thought – economic change leading to social changes – were discussed earlier (section 5 ), here we can be brief. The core of the argument in the present context is that through the working of its internal logic capitalism will reach a stage in its economic development that no further progress within its institutional frame will be possible. But this failure will not leave a void or result in chaos. Through its own logic it would have, in the course of its development, completed all the essential requirements for the successful establishment of its successor mode of production. The method of dealing with these issues followed from Marx’s general evolutionary approach according to which the future is being formed in the womb of the present. This approach suggests that if we can understand the present (by understanding the internal logic of the system) we can understand the direction that development will take in the future. Thus, Marx sought to identify certain tendencies in contemporary capitalism that arise from its internal logic and to project their working into the future. It is these tendencies that he referred to as the ‘laws of motion’ of capitalism.
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Conversion Theory: the key to understanding economic developments before and after the 2008 financial crisis

Conversion Theory: the key to understanding economic developments before and after the 2008 financial crisis

The third lesson is that developments are inter-linked. If, in 2007, the U.S. mortgage backed securities had been regarded as a sound investment, then it would have been unlikely that BNP Paribas would have stopped trading in its three investment funds. The suspicion that something was amiss and that such situation would lead to investment losses for the fund providers would have been reduced. The conversion of long term into daily tradeable obligations would have remained an acceptable proposition. Northern Rock would have had less difficulty in funding its mortgage portfolio. However, the key was that Northern Rock, just like many American investment banks, relied too strongly on interbank and financial market funding. The financial regulators did not challenge Northern Rock’s risk structure. Nor did the financial regulators in the U.S. act upon the risks associated with sub-prime mortgages, especially their conversion into mortgage-backed securities. In order to generate profits for themselves in the short run, most U.S. investment banks sold so-called “investment grade” paper that ended up in losses for the investors, including American Insurance Group (AIG).
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Development of A Gear Box of the Truck

Development of A Gear Box of the Truck

High torque differential hydro-mechanical variator is designed for the continuous automatic converting of rotary motion between the motor shaft and the shaft of the working body of the m[r]

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The Application of Theory of Constraints in M...

The Application of Theory of Constraints in M...

The paper describes the formulation of outsourcing problem, structures it as a linear programming problem, constructs a simplified criterion for ordering products in terms of preferences to manufacture in house or preference to outsource. The methodologies are simpler to implement. The standard accounting solution does not maximise the in-house resource utility and treats all resources as equal, whereas, Theory of Constraints addresses these limitations and maximises the in-house resource utility. Furthermore, the linear programming is simpler as compared to Theory of Constraints.
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Theory of the Nucleation of Pitting. Mechanism of the Local Depassivation of Metal

Theory of the Nucleation of Pitting. Mechanism of the Local Depassivation of Metal

From the experimental and the model studies of the present work, it can be concluded that the system of dissolution of a pH tablet in dilute acetic acid solution may be taken as a good s[r]

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<p>Development of an instrument based on the theory of planned behavior variables to measure factors influencing Iranian adults&rsquo; intention to quit waterpipe tobacco smoking</p>

<p>Development of an instrument based on the theory of planned behavior variables to measure factors influencing Iranian adults&rsquo; intention to quit waterpipe tobacco smoking</p>

In addition, in this study, the convergent and discriminant validities were assessed. According to Fornell Larcker criter- ion, the convergent and discriminant validities are con fi rmed. According to our information, the present study is one of the few studies in the world that has presented a scale TPB-based to measure factors in fl uencing adults ’ intention to quit water- pipe tobacco smoking by providing the convergent and dis- criminant validities. In the present study, we introduced an instrument for measuring TPB variables in terms of the inten- tion to quit waterpipe tobacco smoking among a sample of rural Iranian villagers. This study had two limitations, how- ever. First, we assessed TPB variables directly and thus the development of a valid instrument to an indirect measure of TPB variables in terms of waterpipe smoking cessation is recommended. Second, participants were selected among adults who were living in the two villages of Shiraz, Iran. This issue may limit the generalization of the results to other people in other geographic areas of Iran. Hence, further attempts to validate the instrument within various geographic areas in Iran are essential.
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Dramatic features of the Abang Dance Performance of the Efiks of Nigeria

Dramatic features of the Abang Dance Performance of the Efiks of Nigeria

Abstract— This paper highlights the dramatic features of Abang Cultural dance, particularly in the areas of Costumes, Dance, Songs/Music, Symbols, and Gestures. The paper also examines the objectives via a general back ground study, a review of related scholarship and a descrip tive detail of the theoretical framework upon which the work is hinged. The ethnographic research methodology was adopted for data col lection during fieldwork . The findings of this enquiry concretize the idea that the Abang indigenous performance is an enthralling theatre on the go. As a matter of fact, its artistic apparatuses and dramatic orientation deepens our understanding of Efik epistemology. The paper therefore, recommends the preservation, promotion and transmission of this cultural art through the aid of technology as well as through dance competitions, dance societies, dance troupes in schools, universities and across households. In summary, this research is an attempt to address the lacuna in the critical documentation of the Abang dance of the Efik people in Cross River State, South-South Nigeria.
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Globalization and Africa’s Economic Development: A Historical and Economic Analysis of Africa’s Position in the Global Market

Globalization and Africa’s Economic Development: A Historical and Economic Analysis of Africa’s Position in the Global Market

Since 1980, total per capita GDP has decreased in sub-Saharan Africa at nearly 1 percent per year (Ibid: p. 5). The decrease has been prevalent: 32 countries became poorer than in 1980. Collier and Gunning report that today, Sub-Saharan Africa is the lowest-income region in the world. According to the statistics of growth measurements drawn from a snapshot offered by Collier and Gunning in 32 African countries, it is clear that Africa has suffered a chronic failure of economic growth. What are therefore the underlying issues confronting the debate of Africa’s persistent marginalization in the global market? It is against this backdrop that the Bretton Woods institutions argue that Africa’s stagnation was basically caused by poor policies, and the other, concomitant with the work of Geoffrey Kay contradicts that the formation of the world market was similarly the route to destruction and asymmetric development. The debate on the causes of Africa’s marginalization and slow growth has offered many different explanations apart from the two already mentioned.
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The Use of Schema Theory in the Teaching of Reading Comprehension

The Use of Schema Theory in the Teaching of Reading Comprehension

With the development of schema theory, more and more scholars apply it to reading comprehension, and they further study the relationship between schema and reading comprehension. The presentation of schema theory greatly improves the speed and quality of reading. It helps students build their own reading knowledge framework from all aspects, and also facilitates the future application of students in other areas. In conclusion, the application of schema theory will change the traditional concept of English teachers and students in English reading comprehension, bring new ideas and new methods for English reading comprehension teaching, and provide a theoretical and practical basis for teachers to explore English reading comprehension teaching mode for different levels of English proficiency of students.
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A Novel Synthesis of Oxazolidinone Derivatives (A Key Intermediate of Linezolid)

A Novel Synthesis of Oxazolidinone Derivatives (A Key Intermediate of Linezolid)

Oxazolidinone derivatives a very key intermediate of Linezolid 7(a-e) have been synthesized from 3-fluoro-4-morpholinyl aniline 2 in good yield.The structures of all the compounds were c[r]

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Understanding the mechanical properties of self-expandable stents : a key to successful product development

Understanding the mechanical properties of self-expandable stents : a key to successful product development

The right-hand side of Figure 3 presents a flow chart of the shape design and optimization to be proposed. A three-dimensional (3D) stent shape corresponding to a laser-machined initial stent is formed first from 2D development of the stent of initial shape using 3D-CAD. Next, the 3D-CAD model is divided into finite elements, expansion analysis by the large deformation finite element method is conducted, and the expanded shape of the stent is predicted. Stiffness analysis is conducted using finite element method based on the predicted expansion model. Then mechanical properties of the stent are evaluated from the obtained result. These are respectively equivalent to the manufacturing process, expansion process, and evaluation process in actual fabrication.
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Theory of Economic Development (Pyramids of Development)

Theory of Economic Development (Pyramids of Development)

“The empirical study is analyzed the determinants of private investment in Senegal. He found a significant relationship between private investment and its explanatory variables. Public infrastructural investment was found positively related with private investment, GDP. Credit to private sector and terms of trade has a significant negative impact on private investment. ” (Bazoumana.O, 2004) The data have been analyzed by (M & C, 1990) and discussed the factors of approaching private investment performance into developing countries create mitigate economic risk and low living standards. Particularly, it is noted that public and private investment could not compete instead complement each other. An economic growth had larger impact of private investment than public investment. The research study suggested to evaluate more determinants of public and private investment for education sector which differs negative association among private investment and inflation. The quantitative discussed that if one unit increase in inflation reflects decrease in investment respectively . (Abbas V, 2004) During the 1970 the study found that domestic investment analyzed in eight African countries relatively. Private investment had been negative impact by non-infrastructural investment then infrastructural investment is vice versa. (W.Oshikoyo, 1994)
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Economic burden of torture for a refugee host country: development of a model and presentation of a country case study

Economic burden of torture for a refugee host country: development of a model and presentation of a country case study

As shown in our case study, the costs related to torture for a host country of the victims of torture could be quite important. Compressing such cost might be possible in some areas, such as health care, through early detection of survivors of torture and through the development of therapy centers that are specialized in the rehabilitation of victims of torture. However, compressing costs related to basic needs (housing, food, clothing) might be more difficult. Indeed, a vast majority of host countries have ratified international protocols and conventions that fix the obligations that states have regarding their citizens, but also migrant populations
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Features of a chemical composition of dry leaves of Steviavebaudiana

Features of a chemical composition of dry leaves of Steviavebaudiana

The data show that the granulometric composition of dry leaves of Stevia, obtained by a milling in a rotor-roller disintegrator, presents the highest content of [r]

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