A Model on Knowledge and Endogenous Growth

The authors present a model of endogenous growth in which the main engine of economic development is knowledge. Using a two-sector closed economy model that comprises of a conventional goods-producing sector and a research and development sector, their model incorporates two key aspects of knowledge...

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Main Authors:	Chen, Derek H. C., Looi Kee, Hiau
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS CLOSED ECONOMY DEVELOPED COUNTRIES DISCOVERIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH EXERCISES GROWTH MODELS GROWTH RATE GROWTH THEORY HUMAN CAPITAL INNOVATION INTERNATIONAL TRADE INTERVENTION KNOWLEDGE ECONOMY
Online Access:	http://documents.worldbank.org/curated/en/2005/03/5669373/model-knowledge-endogenous-growth http://hdl.handle.net/10986/8878

id	okr-10986-8878
recordtype	oai_dc
spelling	okr-10986-88782021-04-23T14:02:42Z A Model on Knowledge and Endogenous Growth Chen, Derek H. C. Looi Kee, Hiau CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS CLOSED ECONOMY DEVELOPED COUNTRIES DISCOVERIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH EXERCISES GROWTH MODELS GROWTH RATE GROWTH THEORY HUMAN CAPITAL INNOVATION INTERNATIONAL TRADE INTERVENTION KNOWLEDGE ECONOMY The authors present a model of endogenous growth in which the main engine of economic development is knowledge. Using a two-sector closed economy model that comprises of a conventional goods-producing sector and a research and development sector, their model incorporates two key aspects of knowledge: technology and human capital. Steady-state equilibrium conditions show that the growth rate of per capita income hinges on the growth rate of human capital. While the growth rate of human capital has been previously shown to affect the growth of the economy in transition between steady states or balanced growth paths, the authors are the first to link the growth rate of human capital to the steady-state growth rate of productivity and output per worker. Furthermore, this result does not exhibit scale effects or policy invariance, both of which have been longstanding concerns with the predictions of endogenous growth models developed in the 1990s. 2012-06-22T20:52:08Z 2012-06-22T20:52:08Z 2005-03 http://documents.worldbank.org/curated/en/2005/03/5669373/model-knowledge-endogenous-growth http://hdl.handle.net/10986/8878 English Policy Research Working Paper; No. 3539 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS CLOSED ECONOMY DEVELOPED COUNTRIES DISCOVERIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH EXERCISES GROWTH MODELS GROWTH RATE GROWTH THEORY HUMAN CAPITAL INNOVATION INTERNATIONAL TRADE INTERVENTION KNOWLEDGE ECONOMY
spellingShingle	CAPITAL ACCUMULATION CAPITAL STOCK CAPITAL STOCKS CLOSED ECONOMY DEVELOPED COUNTRIES DISCOVERIES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH EXERCISES GROWTH MODELS GROWTH RATE GROWTH THEORY HUMAN CAPITAL INNOVATION INTERNATIONAL TRADE INTERVENTION KNOWLEDGE ECONOMY Chen, Derek H. C. Looi Kee, Hiau A Model on Knowledge and Endogenous Growth
relation	Policy Research Working Paper; No. 3539
description	The authors present a model of endogenous growth in which the main engine of economic development is knowledge. Using a two-sector closed economy model that comprises of a conventional goods-producing sector and a research and development sector, their model incorporates two key aspects of knowledge: technology and human capital. Steady-state equilibrium conditions show that the growth rate of per capita income hinges on the growth rate of human capital. While the growth rate of human capital has been previously shown to affect the growth of the economy in transition between steady states or balanced growth paths, the authors are the first to link the growth rate of human capital to the steady-state growth rate of productivity and output per worker. Furthermore, this result does not exhibit scale effects or policy invariance, both of which have been longstanding concerns with the predictions of endogenous growth models developed in the 1990s.
format	Publications & Research :: Policy Research Working Paper
author	Chen, Derek H. C. Looi Kee, Hiau
author_facet	Chen, Derek H. C. Looi Kee, Hiau
author_sort	Chen, Derek H. C.
title	A Model on Knowledge and Endogenous Growth
title_short	A Model on Knowledge and Endogenous Growth
title_full	A Model on Knowledge and Endogenous Growth
title_fullStr	A Model on Knowledge and Endogenous Growth
title_full_unstemmed	A Model on Knowledge and Endogenous Growth
title_sort	model on knowledge and endogenous growth
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/03/5669373/model-knowledge-endogenous-growth http://hdl.handle.net/10986/8878
_version_	1764407050921574400

A Model on Knowledge and Endogenous Growth

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