Good Capitalism, Bad Capitalism: What Is a Market Economy and How Can It Deliver?

Article at a glance

• The traditional approach to studying economic growth overlooks the importance of individuals and individual firms.
• Market economies are not monolithic – there are four different types of capitalism (oligarchic, state-guided, big-firm, and entrepreneurial), each with different features and implications for growth.
• Entrepreneurial capitalism is the most effective driver of economic growth because it provides opportunities for new firms to innovate and create new markets.