Natural Selection and the Origin of Economic Growth

Natural Selection and the Origin of Economic Growth

August 15 2000, Revised November 15, 2000 | Galor, Oded; Moav, Omer
This paper, authored by Oded Galor and Omer Moav, develops an evolutionary growth theory that explains the interplay between the evolution of mankind and economic growth. The theory suggests that prolonged economic stagnation prior to sustained growth stimulated natural selection, which shaped the evolution of the human species. The evolution of the human species, in turn, was the origin of the transition from stagnation to sustained growth. The theory encompasses the observed evolution of population, technology, and income per capita during the long transition from Malthusian stagnation to sustained economic growth. It posits that during the Malthusian era, technology evolved slowly, and population growth prevented sustained increases in income per capita. Natural selection favored quality-biased preferences, leading to faster technological progress and a demographic transition that paved the way for sustained economic growth. The paper argues that the key events separating Malthusian stagnation from sustained growth include the acceleration in technological progress and the demographic transition. The theory is based on four fundamental elements: the Malthusian world, the Darwinian world, the link between human evolution and economic growth, and the rise in technological progress leading to the demographic transition and sustained growth. The model demonstrates how these elements interact to generate an evolutionary pattern consistent with the observed evolution of the world economy and human population.This paper, authored by Oded Galor and Omer Moav, develops an evolutionary growth theory that explains the interplay between the evolution of mankind and economic growth. The theory suggests that prolonged economic stagnation prior to sustained growth stimulated natural selection, which shaped the evolution of the human species. The evolution of the human species, in turn, was the origin of the transition from stagnation to sustained growth. The theory encompasses the observed evolution of population, technology, and income per capita during the long transition from Malthusian stagnation to sustained economic growth. It posits that during the Malthusian era, technology evolved slowly, and population growth prevented sustained increases in income per capita. Natural selection favored quality-biased preferences, leading to faster technological progress and a demographic transition that paved the way for sustained economic growth. The paper argues that the key events separating Malthusian stagnation from sustained growth include the acceleration in technological progress and the demographic transition. The theory is based on four fundamental elements: the Malthusian world, the Darwinian world, the link between human evolution and economic growth, and the rise in technological progress leading to the demographic transition and sustained growth. The model demonstrates how these elements interact to generate an evolutionary pattern consistent with the observed evolution of the world economy and human population.
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Understanding Natural Selection and the Origin of Economic Growth