The Research Of Human Capital, R&D And Economic Growth, Under The Open Economy

Technological progress has been regarded as the engine of economic growth for a long time. The endogenized technological progress is the core of new economic theory. Theoreticians usually use human capital or research and development (R&D) respectively to endogenize technological progress. However, in domestic there is little study to integrate the above two channels. And this is the starting point of our thesis. Firstly, we systemically recall relative theories and analyze their characteristics and mechanisms. Then on the base of the models of Rivera-Batiz, Romer and Anna, we construct a comprehensive model including human capital and R&D. Meanwhile, a viable describing technology import and absorption has been innovatively introduced into our model. Through exerting international trade as technology spillover , we are able to study the effect of human capital and R&D to economic growth under the open economy. Moreover, in our model, comparative advantages between trade partners have been considered. Afterward, we use cointegration and error correction model to test the constructed model. The empirical comparisons are also made to find specific effects of every expository variable. The result shows that there is long term equilibrium relationship among domestic R&D, foreign R&D, human capital and Total Factor Productivity. And in order to absorb the foreign advanced technology, our human capital accumulation should be improved, which proves the idea of our mathematical model that is to study the integration of R&D and human capital to economic growth. On the base of systematic theoretical and empirical analysis, we offer some advices to government and corporations.