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The Review of Austrian Economics

, Volume 21, Issue 4, pp 355–359 | Cite as

Making poor nations rich: Entrepreneurship and the process of economic development, edited by Benjamin Powell. 2008. Stanford: Stanford Economics and Finance and the Independent Institute

  • Art Carden
Article

The question in economic analysis asks, “why are some people very rich while other people are very poor?” A growing literature in development economics and economic history focuses on secure institutions, private property rights, and free markets as the necessary conditions for economic growth. The essays in Powell’s volume fill in some of the gaps in this literature by focusing on the mechanisms by which economic development takes place. Specifically, the essays Professor Powell assembles lay theoretical and empirical foundations for the role of entrepreneurship in economic development and then illustrate some of the successes and failures that have taken place around the world.

The book is clearly an exercise in what has been termed “new institutional social science.” There is much to be gleaned from the case-study approach and from ethnographic studies relying on field research and interviews. When informed by coherent and comprehensive theory, such a methodology can be instructive:...

References

  1. Caplan, B. (2007). The myth of the rational voter: why democracies choose bad policies. Princeton: Princeton University Press.Google Scholar
  2. Easterly, W. (2006). The white man’s burden: why the west’s efforts to aid the rest have done so much ill and so little good. New York: Penguin.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  1. 1.Economics and BusinessRhodes CollegeMemphisUSA

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