Education And Technology Adoption In A Small Open Economy: Theory And Evidence
AbstractWe develop a simple open-economy growth model in which productivity growth and education influence each other, and use it to empirically address issues of causality between them. Technology adoption fostered by human capital and economic openness determines productivity growth; the framework allows us to evaluate whether the effects of these two variables on growth documented in previous cross-country regression studies carry over to a simultaneous system closely allied to a model. This model implies that an increase in openness will stimulate technical change but, for empirically plausible values of the intertemporal elasticity of substitution, it will cause a decrease in the level of education. The empirical analysis specifies productivity growth and human capital as endogenous variables and finds evidence broadly consistent with the theory openness and education stimulate productivity growth, and there is a negative effect of this growth on human capital accumulation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Cambridge University Press in its journal Macroeconomic Dynamics.
Volume (Year): 7 (2003)
Issue (Month): 04 (September)
Contact details of provider:
Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Fax: +44 (0)1223 325150
Web page: http://journals.cambridge.org/jid_MDYProvider-Email:email@example.com
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Tiago Sequeira, 2012. "Facts and distortions in an endogenous growth model with physical capital, human capital and varieties," Portuguese Economic Journal, Springer, vol. 11(3), pages 171-188, December.
- Vu, Tam Bang & Hammes, David L. & Im, Eric Iksoon, 2012. "Vocational or university education? A new look at their effects on economic growth," Economics Letters, Elsevier, vol. 117(2), pages 426-428.
- Cuong Le Van & Manh-Hung Nguyen & Thai Bao Luong, 2006. "New technology, Human Capital and Growth for Developing Countries," Post-Print halshs-00118979, HAL.
- Silva, André C., 2010. "Managerial ability and capital flows," Journal of Development Economics, Elsevier, vol. 93(1), pages 126-136, September.
- Ayse Imrohoroglu & Krishna B. Kumar, 2004. "Intermediation Costs and Capital Flows," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(3), pages 586-612, July.
- Cuong Le Van & Manh-Hung Nguyen & Laurent Thai Bao Luong, 2006.
"New technology, human capital and growth for developing countries,"
Cahiers de la Maison des Sciences Economiques
b06065, Université Panthéon-Sorbonne (Paris 1).
- Cuong Le Van & Tu-Anh Nguyen & Manh-Hung Nguyen & Thai Bao Luong, 2007. "New Technology, Human Capital and Growth for Developing Countries," Working Papers 01, Development and Policies Research Center (DEPOCEN), Vietnam, revised Jan 2009.
- Cuong Le Van & Manh-Hung Nguyen & Thai Bao Luong, 2006. "New technology, Human Capital and Growth for Developing Countries," UniversitÃ© Paris1 PanthÃ©on-Sorbonne (Post-Print and Working Papers) halshs-00118979, HAL.
- Sequeira, Tiago Neves, 2007.
"Transitional Dynamics of an Endogenous Growth Model with an Erosion Effect,"
FEUNL Working Paper Series
wp508, Universidade Nova de Lisboa, Faculdade de Economia.
- Tiago Neves Sequeira, 2008. "Transitional Dynamics Of An Endogenous Growth Model With An Erosion Effect," Manchester School, University of Manchester, vol. 76(4), pages 436-452, 07.
- Manuel A. Gómez, 2012. "Equilibrium Dynamics Of An Endogenous Growth Model With An Erosion Effect And Duplication In R&D," Manchester School, University of Manchester, vol. 80(6), pages 700-717, December.
- Elizabeth M. Caucutt & Krishna B. Kumar, 2003. "Education Policies to Revive a Stagnant Economy: The Case of Sub- Saharan Africa," Development and Comp Systems 0304002, EconWPA.
- Cuong Le Van & Manh-Hung Nguyen & Thai Bao Luong & Tu Anh Nguyen, 2008. "New Technology, Human Capital and Growth for European Transitional Economies," THEMA Working Papers 2008-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Tiago Sequeira & Elsa Martins, 2008. "Education public financing and economic growth: an endogenous growth model versus evidence," Empirical Economics, Springer, vol. 35(2), pages 361-377, September.
- Elizabeth M. Caucutt & Selahattin Imrohoroglu & Krishna B. Kumar, 2003. "Growth and Welfare Analysis of Tax Progressivity in a Heterogeneous-Agent Model," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(3), pages 546-577, July.
- Elisabeth Caucutt & Krishna B. Kumar, 2007. "Education For All: A Welfare-Improving Course for Africa?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(2), pages 294-326, April.
- Ayse Imrohoroglu & Krishna B. Kumar, 2003. "Entry Costs, Intermediation, and Capital Flows," Macroeconomics 0304001, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.