Far more than an intellectual puzzle for pundits, economists, and
policymakers, economic growth—its makings and workings—is a subject
that affects the well-being of billions of people around the globe. In The Mystery of Economic Growth,
Elhanan Helpman discusses the vast research that has revolutionized
understanding of this subject in recent years, and summarizes and
explains its critical messages in clear, concise, and accessible terms.
The tale of growth economics, as Helpman tells it, is
organized around a number of themes: the importance of the accumulation
of physical and human capital; the effect of technological factors on
the rate of this accumulation; the process of knowledge creation and its
influence on productivity; the interdependence of the growth rates of
different countries; and, finally, the role of economic and political
institutions in encouraging accumulation, innovation, and change.
One of the leading researchers of economic growth, Helpman succinctly
reviews, critiques, and integrates current research—on capital
accumulation, education, productivity, trade, inequality, geography, and
institutions—and clarifies its relevance for global economic
inequities. In particular, he points to institutions—including property
rights protection, legal systems, customs, and political systems—as
the key to the mystery of economic growth. Solving this mystery could
lead to policies capable of setting the poorest countries on the path
toward sustained growth of per capita income and all that that
implies—and Helpman's work is a welcome and necessary step in this
direction.