GGR221H1 Lecture Notes - Kondratiev Wave, Longwave, Joseph Schumpeter
Document Summary
The evolution of industrial regions: technology, long waves, spatial divisions of labor and path - dependence. Capitalism is a dynamic and unstable system, with periods of rapid growth followed by periods of decline. Named after the russian economist n. d. kondratieff who in the 1920s studied long term fluctuations in economic activity: d. kondratieff. Observed that if you look at the history of the economy, countries often go through history of cycles. Each wave of economic development approx 40-60 years. Each wave is characterized by a period of growth of upswing (approx 25 years), followed by a period of stagnation and decline or downswing (approx 25 years) Fundamental qualitative transformations rather than mere quantitative fluctuations. Argued that there were long wave, and smaller term cycles. Shorter oscillations in the level of business activity superimposed in long waves. Freeman and perez: each wave associated with : Dominant set of industries - main carrier branches.
