A Model Of "Learning By Doing" And The Findings Of Industries With "Leaning By Doing Potential" In China

"Endogenous Growth Theory" mainly discusses the contribution of endogenoustechnological progress to economic growth. It causes a further development of theresearch on economic growth and provides the developing countries with lots ofadvice and policies. A model of "Learning by Doing" (Young, 1991) indicates that bythe assumption of intranational knowledge spillover, comparative advantage isdecided by the state of technology. Because the developed countries hold thetechnological lead, they specialized in the production of high-tech commodities whilethe developing countries are on the contrary. This trade pattern do harm to thedeveloping countries as they obtained less beneficiation from the "learning by doing"effect of production of complicated commodities. (Young, 1991) suggests thatdeveloping countries should adopt policies to advocate the production of high-techcommodities and improve their situation in this trade pattern. This study explores thecharacteristics of industries with "leaning by doing" potential in China by the definitionof (Young, 1991), that is the actual demand of labor per output decreases while thetime goes. Another two characteristics are the technological complexity and theefficient labor input. The data are output and labor input in Chinese industries from2002 to 2005. At last, the study indicates that the effect of "leaning by doing" is limited,the R&D and innovation are also important to the economic growth.