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Growth Prototypes and Economic Policy

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Economic Growth and Development Policy

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Abstract

The design and implementation of economic policy are highly correlated with the actual basis on which it has to be applied. This chapter argues that applied policy which aims at promoting economic efficiency is linked to the particular circumstances prevailing in an economy, making it unique every time. Although economic thinking has been reinforced by the observation of economic reality and the advancement of economic science itself, for many decades, the growth model has been considered as a given. Nevertheless, different institutional or productive frameworks carry different growth patterns. This chapter focuses also on institutional and cultural background deviations from the optimum growth prototype, the dangers faced by countries regarding the concepts of the poverty, and the cultural trap and the stagnation or acceleration periods of economies.

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Notes

  1. 1.

    The term “cultural background” or “cultural values” reflects the behaviour of the individual who is influenced by other people through teaching, imitation and other forms of social dissemination. That is, it is the set of beliefs, preferences, skills, values, stereotypes and rules, which characterize members of a given society and differentiate them from those of other societies. The way a person behaves, perceives and reacts is shaped by the architecture of the human mind shaped by the ongoing action of organic evolution.

  2. 2.

    The different levels of income, based on GDP per capita, are classified as follows: low-income economies have GDP per capita of less than US$1025; middle-income economies have GDP per capita of between US$1026 and US$12,475 and high-income economies have a GDP per capita greater than US$12,476.

  3. 3.

    According to their analysis, in order to achieve two points of equilibrium in the economy, it is necessary to have high weightings in the discount factor and in the public health infrastructure. For this reason, they consider the analysis unrealistic.

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Authors and Affiliations

  1. Department of Economics, National and Kapodistrian University of Athens, Athens, Greece

    Panagiotis E. Petrakis, Dionysis G. Valsamis & Kyriaki I. Kafka

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  1. Panagiotis E. Petrakis
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  2. Dionysis G. Valsamis
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  3. Kyriaki I. Kafka
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Correspondence to Panagiotis E. Petrakis .

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Petrakis, P.E., Valsamis, D.G., Kafka, K.I. (2020). Growth Prototypes and Economic Policy. In: Economic Growth and Development Policy . Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-43181-5_3

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  • DOI: https://doi.org/10.1007/978-3-030-43181-5_3

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