After embracing globalization, some countries have achieved fast growing. Meanwhile, many multinational corporations (MNCs) have made significant profits and also contributed a lot to economic growth. However, opponents believe that the benefits haven’t been equally shared and view it “as a threat to prosperity, cultural integrity, and the environment” For developed countries that compete succe...

What roles do firms play in technological change? A new technique involves interests uch as profit and growth. It also involves new knowledge. Just as economic development for Joseph Schumpeter is a new combination of existing elements [1961, pp. 65-66], so technological change combines and develops existing knowledge. To learn what roles firms play in generating (or blocking) technical change,...

Why did the country that borrowed the most industrialize first? Earlier research has viewed the explosion of debt in 18th century Britain as either detrimental, or as neutral for economic growth. In this paper, we argue instead that Britain’s borrowing boom was beneficial. The massive issuance of liquidly traded bonds allowed the nobility to switch out of low-return investments such as agricult...

A mathematical model for the Dynamics of Economic Profit is constructed by proposing a characteristic differential oneform for this dynamics (analogous to the action in Hamiltonian dynamics). After processing this form with exterior calculus, a pair of characteristic differential equations is generated and solved for the rate of change of profit P as a function of revenue R (t) and cost C (t). ...

The notion of Net Present Value (NPV) is thought to formally translate the notion of economic profit, where the discount rate is the cost of capital. The latter is the expected rate of return of an equivalent-risk alternative that the investor might undertake and is often found by making recourse to the Capital Asset Pricing Model. This paper shows that the notions of disequilibrium NPV and eco...

Ricardo after Sraffa In the preface of the Principles (1817), Ricardo states that the main problem of Political Economy concerns the distribution of income among the three classes of society: the capitalists, the workers and the landowners, who receive the profits, the wages and the rents, respectively. When rent is discarded, the trade-off between wages and profits becomes apparent. Nowadays, ...

Economic profit is produced by entrepreneurs, those special individuals able to detect and seize as yet unexploited market opportunities. In general capitalist firms manage to deliver positive profits even in the most competitive environments. They can do so thanks to internal entrepreneurs, a subset of their employees able to drive change and develop innovation in the workplace. This paper arg...