Technology Dynamics and Growth

According to the Solow Model, productivity growth is the key to long-term, sustained economic growth. In practice, this is quantified by a blunt measure of economic efficiency called total factor productivity (TFP). Referred to as a "measure of our ignorance" by Robert Solow himself, TFP is calculated by summing up all growth that is not … Continue reading Technology Dynamics and Growth

Closing the Infrastructure Gap

In 2017 the McKinsey Global Institute estimated that the world would need to spend $67tn by 2035, or $3.7tn annually — roughly $1.3tn more than was spent in 2013 — on infrastructure in order to merely keep up with projected economic growth. This difference between current spending on infrastructure and the need for additional funding … Continue reading Closing the Infrastructure Gap

Premature Deindustrialization: Economic Growth Then & Now

The conventional path for economic development has been to use industrialization — the process of increasing industry's relative contribution to total GDP and employment, at the expense of those of agriculture and services — as a means to enable rapid convergence. "Convergence" refers to a catch-up effect whereby countries that have low levels of income … Continue reading Premature Deindustrialization: Economic Growth Then & Now