The Elusive Quest For Growth By William Easterly Ctw 1 Econ 4900 Essay

933 words - 4 pages

In “The Tales of Increasing Returns” Easterly explains increasing returns in a economy and its correlation with knowledge. Easterly points out that we have high incentives to gain the knowledge of what works in whatever industry we work in. A great aspect of ideas is that there is no limit to how many people use them. They provide increasing returns as opposed to diminishing returns like machines. Knowledge is based on skills that personnel share with each other in order to improve efficiencies, rather than physical items. Organizations with high knowledge capital may be more profitable or more productive than organizations with lower knowledge capital. Businesses develop knowledge capital by encouraging employees to share information through white papers, seminars and person-to-person communication. Knowledge capital is important because it reduces the odds that a company will have to "reinvent the wheel" each time a particular process is undertaken because its employees have access to documents detailing the necessary steps, and personnel who have undertaken similar activities.
Leaks: Easterly points out that knowledge leaks, in other words, it is transferable from one person to another. He gives the example of Noorul Quader who opened an apparel manufacturing plant in Bangladesh. He initially partnered with a company from South Korea that could provide him with the necessary technical knowledge to open a successful business. He learned how to obtain credit, how to work through the political system to reduce taxation, and how to produce the apparel itself. Mr. Quader’s company began to employee large numbers of Bangladeshis who in turn learned what he had learned from the Koreans and opened up their own companies. Within a decade the apparel business had become a multi-billion dollar exporting sector of the Bangladeshi economy. This story demonstrates the principle that knowledge leaks. Easterly writes that “useful knowledge about how to produce things at a low cost – that is, how to get rich – is hard to keep secret. People have a high incentive to observe what you are doing. People who work with you have a high incentive to leave and do what you were doing to get rich” (p. 150).
Another property of knowledge is that it builds on prior knowledge and becomes ever more valuable as it increases. “A new idea is worth more to the society the more the society already knows. This property of knowledge means that there are increasing returns to investment in knowledge” (p. 150). It also means, unfortunately, that countries with a pre-existing base of knowledge are more capable of producing more knowledge and therefore become richer while those countries with a low base of knowledge will be less capable of increasing it.
Matches: In the production of goods or in the...

Other Essays On the elusive quest for growth by william easterly - CTW 1 econ 4900 - essay

Essay on the Theme of Macbeth by Shakespeare - English Lvl. 1 - Essay

897 words - 4 pages The Role of Power in the Corruption of Macbeth and Lady Macbeth In William Shakespeare’s tragedy, Macbeth, characters can be seen being easily corrupted by power. Throughout the play, Macbeth and Lady Macbeth both make questionable decisions when the opportunity to seize power presents itself. Lady Macbeth convinces Macbeth to murder King Duncan to secure the throne and Macbeth orders his best friend to be murdered in order to remain king. Power

"A Rose For Emily" By William Faulkner

946 words - 4 pages There are many important external factors and influences that govern people's lives and the way they live, for instance, one's position in society and reputation within it establish the social hierarchy; the social values, beliefs and customs maintained in the community determine how a person is judged; and the general environment that surrounds the subject resolves his or her views and perceptions on life. In "A Rose for Emily" by William

Assignment #1 FICTION: A Rose for Emily - ENG 1B - Essay

1433 words - 6 pages Cobarrubio 1 Regina Cobarrubio ENG 1B Professor Anguiano 12 , March 2019 Fiction: A Rose for Emily “One reason people resist change is because they focus on what they have to give up, instead of what they have to gain”. In the short story, “A Rose for Emily” by William Faulkner, the protagonist, Emily Grierson, was born into a old southern family where she was controlled by her father. This was a time soon after civil war where she was not able


2862 words - 12 pages on the way in which Oktoberfest is run, the details of which will be explored throughout this essay. The economy of Munich is influenced hugely by Oktoberfest. 70% of Munich’s tourists to go to the event and around 955 million euros are spent during the 16 to 18-day festival on amenities such as public transport, accommodation, food, drink and entertainment (Schulekorf, 2008). Each year the festival employees 12,000 people to run the “worlds

AFT Task 1-Executive summary for senior leadership - WGU - Essay

1005 words - 5 pages AFT2 Task 1 Page 2 A. Compliance Status Communication Joint Commission addresses the UP 01.01.01, UP 01.02.01, and 01.03.01 laws. Under the UP 01.01.01 there are three compliance codes the Nightingale Community Hospital needs to be following. The hospital follows the first code to implement a preprocedural process to verify the correct procedure for the correct patient at the correct site. It is found in the Site Identification and

capitalism essay for business, society and policy - BSP - assessment 1

633 words - 3 pages does benefit the society. Although capitalism has some ethical and social dilemma in the B.S.G triangle, it still benefits the society through minimum wage which grants a better quality of life for the society. It is important for the government to develop its economy as it could improve the society, the more money the government has the more benefit it brings to the society. The government could improve the quality of education and quantity of

Narrative essay for comp 1 English - English - Narrative

739 words - 3 pages Paige Jones Mrs. Yarnell Comp 1 14 February 2018 Scariest Moment in My Life I remember the day like it was yesterday, the night of my very first wreck. It was a cool fall evening, the clouds had been forming all day. I had just pitched an awesome softball game for a dramatic win against Neosho. As we were cleaning up the field after the game I felt a few raindrops and I didn’t think anything of it. I asked my team if they wanted to go to sonic

Comparative Essay. "Heart Of Darkness" By Joseph Conrad And William Golding's "Lord Of The Flies"

2729 words - 11 pages to its wrath. In William Golding's Lord of the Flies the author points out how easily people can be over taken by the darkness, how the potential for good can be destroyed by the evil, but ideally how good will triumph. Through an examination of these two works we can see how the darkness within, given the correct environment will surface. The circumstances which eventually cause the appearance of the inner darkness in these two novels stems from

An essay outlining character development and growth in Boy21 by Matthew Quick - YOC/English - Essay

1043 words - 5 pages Essay Boy21 There is a very large amount of character growth and development in Boy21 by Matthew Quick. In the novel, one of the themes is “coming of age”, and this is shown in protagonist Finley McManus when the reader witnesses him grow as a person. Many things have an effect on Finley, including his friends Erin and Russ, and his city, Belmont. Living in Belmont with Erin and Russ causes Finley to become more mature and responsible in his

factors affecting the growth of duckweed - biology - essay

408 words - 2 pages U.S. for 15 million dollars. The Indian Removal Act of 1830 affected many Native American Indians. Native American Indians who lived by the Mississippi River lost their lands and move to the west and start a new life as farmers. In support of this, “An act to provide for an exchange of lands with the Indians residing in any of the states or territories, and for their removal west of the river Mississippi” (Document 1). The Homestead Act was the

Romeo And Juliet Essay By William Shakespea. Essay Question: Why Did 'The Pair Of Star-Crossed Lovers' Take Their Lives?

893 words - 4 pages Romeo and Juliet essay by William Shakespea. Essay question: Why did 'The pair of star-crossed lovers' take their lives?The tragedy of Romeo and Juliet is one of the most dramatic and influential love stories of all time. The play, written by William Shakespeare in the late sixteenth century tells the anguishing tale of 'star-crossed lovers' taking their lives to be together in death. This essay will discuss three points that I believe to be

Similar Papers

Advatange And Disadvantage For Glabalization Econ 251 Essay

1120 words - 5 pages get to increase their standard living, then the purchasing power will increase too. Cons 1 )domestic politic will be influence because the firm has certain degree of control over the domestic policy …….. 1. Domestic economic will be influenced by the foreign company. - This is because when a foreign company control more than half of a country’s economy, it will bring a huge influence to the locals as in when it comes to decision making, the

Summary Of Article By Grubb And Stitt Econ 55 Essay

859 words - 4 pages Tony Stitt believe that the shift from European immigrant servants labor to African slave labor led to this current issue through the separation of South from the North, the ensuing military and political conflicts, and the South’s reintegration. They support the hypothesis that states a decline in servant supply is responsible for the transition from servants to slaves and explain the reason behind servant supply decline by analyzing the

The Lottery Answer For Question 1 Gwc/G110 Essay

908 words - 4 pages The Purpose of the Lottery and Real Life Connection. A short story was written by Shirley Jackson describe a religious tradition of “ Lottery” using the irony in the story to connect to real life problems. Beginning the story by showing the conformity of the villagers in their tradition of drawing lottery without understand the purpose of it. “the original paraphernalia for the lottery had been lost long ago, and the black box now resting on the

Economics Of Sweden : The History Of How Sweden Became What It Is Today. Econ Essay

1850 words - 8 pages Industrial Revolution was a huge step towards the future that we are in right now. While Great Britain was center stage for the industrial revolution they were not the only country to make changes. “Indeed, it has been claimed that Sweden was actually ‘impoverished but sophisticated' in 1850, after as many as 150 years of a relative economic decline (meaning that it had a growth rate that was significantly lower than the European average). By