Get 45+ pages long run causes of comparative development solution in Doc format. In order for an economy to experience positive long-run growth its outputs and inputs must be in balance for an increase to occur in supply demand revenue and employment. Cation capital accumulation etc are not causes of growth. What are institutions exactly. Check also: development and long run causes of comparative development 30Finally it is worth observing that our empirical findings have important implications for alterative theories of comparative development.
This paper present a schematic framework for the interpretation of some influential recent contributions to the study of the majo long-run causes of comparative development. In North and Thomass view the fundamental explanation of comparative growth is differences in institutions.
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For our empir- ical approach to work all we need is that they are a source of exogenous variation.
The major emphasis is placed on what has been learned recently about the role of institutions in relation to other factors through the use of centuries rather than decades of data. They are growth italics in original. Factor accumulation and innovation are only proximate causes of growth. The long-run economic growth is determined by short-run economic decisions. Explain why geography and economic institutions are considered to be two of several long run causes of comparative development. The underlying causes that have allowed some countries to attain high income levels and have kept others at lower echelons have been debated at least since Adam Smith published his seminal work on the growth of nations.
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