Font Size: a A A

Economic Growth Model Of Technological Progress

Posted on:2006-06-29Degree:MasterType:Thesis
Country:ChinaCandidate:K F YanFull Text:PDF
GTID:2206360152990859Subject:Political economy
Abstract/Summary:PDF Full Text Request
Economic growth has much to do with total output. Total output is decided by totalinput, whose resources come from labour, capital and technology progress. Theformer two factors are visible, which can be obtained by data. Technology progress isthe factor which can make output increase if the labour input and capital input isunchangeable. The paper deals with the analysis of relations among three factors. Theauthor tries to set up a growth model of complex production function abouttechnology level. The research shows the function of technology progress is realizedby its affecting capital factor and labour factor. Technology structure is decided by the country's own natural structure. If thecountry invest much to human capital, balance and improve the industry structure,especially according to its own natural structure, industries in the countries will bemost competitive and profitable, at the same time, the more natural factors improve,the higher technology level will be. Therefore, It is a key for a country to make useof technology level to improve the efficiency of production factors. Any deliberateinterference will impose loss to efficiency and welfare. The model shows that thedevelopment of government's policy will focus on the increase of technology leveland rationalization of technology structure to achieve a rapid , sustainable and soundeconomic growth. Although China has the highest average growth in the past twenty years. Butit is in the slow potential since the 1990's. The main reason is that human capitaltechnology flexibility goes down and the material capital technology flexibilityclimbs, which the gap between two things will decline. Thus, China is in the lack ofmomentum for the economic growth. The key to the problem is to improve humancapital technology flexibility, keep material capital technology flexibility reasonableand the subtraction result between two factors in the increase. There are four chapters in this paper. The first chapter generalizes the basisframework and inner-growth theory of economic growth. The second chapter utilizescomplex production function to study the role of technology progress in economicgrowth. The third chapter analyzes China development by way of facts on the basis ofmentioned model. The last chapter summarizes the meaning of the whole paper.
Keywords/Search Tags:human capital technology flexibility, material capital technology flexibility, technology progress, technology level, total factors productivity, inner-growth economy
PDF Full Text Request
Related items