A Study On The Driving Factors Of Endogenous Economic Growth

For many problems in macroeconomics, economic growth is of key importance. Economic growth theory evolves from exogenous economic growth theory to endogenous economic growth theory. Exogenous economic growth theory considers that an increase in TFP will increase the economic growth rate, while it doesn't study the mechanism of TFP on economic growth. Edogenous economic growth theory studies the edogeneity of TFP, and analyzes the internal mechanism of long-term economic growth. The power and source of endogenous and stable economic growth have been fully studied, and have been summed up in four aspects, i.e., technological change, institution change, rationally allocation of resources, and FDI.Technological progress is a key engine of economic growth. The literatures available on technological progress focus on such two facets as endogenous aggregate technological progress and biased technological change. The literatures of endogenous aggregate technological progress study the mechanism of endogenous technological change and its growth effect in exogenous human capital accumulation framework. This dissertation develops a theoretical model of endogenizing technology and human capital simultaneously, and analyzes how human capital accumulation and R & D investment provide incentives for each other and how they affect economic growth. The literatures of biased technological change only studies the relationship between biased technology stock and relative factor supply, this dissertation expends this issue to the study of the relationship between biased technological progress rate and relative factor supply. The conclusion is that the spillover effects and the productivity of human capital in R&D are the main influencing factors of biased technological progress. If the spillover effects and the productivity of human capital in R&D are sufficiently large, technology stock and technological progress rate can increase at the same time in response to an increase in the relative supply of this factor. Finally, this dissertation characterizes the "erosion effect" which implies a negative externality of R&D in human capital accumulation. This dissertation solves the steady-state economic growth rate in decentralized economy and centralized economy separately, and draws a conclusion that monopoly markup, negative effect of learning by doing, "erosion effect" and overinvestment of physical capital and human capital would decrease human capital accumulation rate and economic growth rate.Institutional is the important guarantee of harmonious and stable growth. The available literatures lack the studies of endogenous mechanism of how institutional evolution drives long-run economic growth. This dissertation develops a theoretical model of endogenizing institutional change and technological change simultaneously. The conclusions are that institutional change and technological change are the two driving factors of economic growth, and there is a cross externality between these two driving factors which provide incentives for each other and promote equidirectionally, and the investment of politics and scientists of high qualities can insure the role of this cross externality.Labor moving in the process of structural change raises the efficiency of resources allocation, and promotes economic growth. This dissertation constructs a multi-sector model of growth with differences in technology progress rates across intermediate sectors, and analyzes the relationship between endogenous structural change and economic growth. The different levels of technology among intermediate sectors cause reallocation of labor in those sectors and structural change. This dissertation studies the effect of cross-sector labor moving to aggregate economy and local economy, and concludes that structural change is a main driving force of long-term and steady growth of aggregate economy and local economy.FDI are main approaches to promote technological progress and economic growth. Firstly, This dissertation studies absolute convergence and conditional convergence caused bybiased technological change. On the basis of the empirical analysis we divide cross-country income differences into 4 cases, and analyze the reasons of absolute convergence and conditional convergence and the reasons of wage fluctuations. Finally we conclude that sustainable baised technological progress and efficient human capital investment are the key conditions by which LDCs can catch up developed countries.Secondly, this dissertation combines the theories of endogenous growth and the theories of cooperative game based on exclusive assets, and analyzes how bargaining power and exclusive assets of two sides of foreign joint ventures affect the economic growth rate of host countries. The dissertation points out the less the gaps of exclusive assets and bargaining power of the two parties in foreign joint ventures are, the faster the economic growth of host country is. And this dissertation also analyzes the change of ownership structure of foreign joint ventures and the tendency of sole-proprietorizing for FDI. Finally we conclude that the exclusion of assets of the two parties of foreign joint ventures which is based on exclusive technology is the main factor to decide the ownership structure of foreign joint ventures, and an increase in technological progress and an increase in the exclusion of assets are of central importance in rising control force of foreign joint ventures and improve the position in international economy.