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Porter model of economic development at the back of an envelope
Author(s) -
Pol Eduardo
Publication year - 2020
Publication title -
australian economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 15
eISSN - 1467-8454
pISSN - 0004-900X
DOI - 10.1111/1467-8454.12173
Subject(s) - economics , constraint (computer aided design) , economic model , development (topology) , narrative , index (typography) , economic analysis , presentation (obstetrics) , neoclassical economics , economic system , macroeconomics , computer science , classical economics , engineering , mathematics , medicine , radiology , mechanical engineering , mathematical analysis , linguistics , philosophy , world wide web
The Porter model of economic development links the phases of development with national competitiveness. His model lies at the heart of the Global Competitiveness Index. It appears, curiously enough, that there is nowhere in the economics literature a concise explanation of the Porter model of economic development. This paper not only fills this gap but also draws the line of separation between formal economic models and narrative economic models; provides a rigorous presentation of Porter model of economic development; distinguishes between the Porter development path and Porter's law of economic development; strips Porter model to its bare essentials in a single picture; and finally, shows that the Porter model satisfies the condition known as the way the world works (www) constraint.