McCloskey and social networks as a channel for Kirznerian growth

McCloskey and social networks as a channel for Kirznerian growth

Outlet submitted to: Economic Affairs

Abstract: This article expands on the view of Deirdre McCloskey that the economic growth of the western world since the end of the eighteenth century can be explained by the process of entrepreneurial change as described by Israel Kirzner. This article proposes that while Kirzner’s approach to economic development is indeed fruitful, it should be augmented through the study of social networks which have been partially ignored by McCloskey. When social networks are seen in the light of the Kirznerian process of entrepreneurship, they represent an important form of institutions that relay information about the proper identification and perception of opportunities.