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Phases of economic development and the transitional dynamics of an innovation-education growth model

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  • Iacopetta, Maurizio

Abstract

This paper extends earlier analysis of the transitional dynamics of a growth model in which both human capital and innovation drive income expansion. Funke and Strulik [2000. On endogenous growth with physical capital, human capital and product variety. European Economic Review 44, 491-515] suggest that the typical advanced economy follows three development phases, characterized in a temporal order by physical capital accumulation, human capital formation, and innovation, and that the transitional dynamics of the model reproduce such a sequencing. I argue that other sequences of the phases of development are possible and show that the model can generate a trajectory in which innovation precedes human capital formation. This trajectory accords with the observation that the rise in formal education followed with a considerable lag the process of industrialization. U.S. income and educational time series data are used to corroborate the innovation-education trajectory.

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 54 (2010)
Issue (Month): 2 (February)
Pages: 317-330

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Handle: RePEc:eee:eecrev:v:54:y:2010:i:2:p:317-330

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Web page: http://www.elsevier.com/locate/eer

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Keywords: Transitional dynamics Innovation Education;

References

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Citations

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Cited by:
  1. Sequeira, Tiago & Santos, Marcelo & Ferreira-Lopes, Alexandra, 2013. "Why Inventions Occurred in Some Countries and Not in Others?," MPRA Paper 51553, University Library of Munich, Germany.
  2. Fulvio, Castellacci & Jose Miguel, Natera, 2011. "The dynamics of national innovation systems: a panel cointegration analysis of the coevolution between innovative capability and absorptive capacity," MPRA Paper 31583, University Library of Munich, Germany.
  3. Agenor, Pierre-Richard & Canuto, Otaviano, 2012. "Middle-income growth traps," Policy Research Working Paper Series 6210, The World Bank.
  4. 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.
  5. Shu-Shiuan Lu, 2012. "East Asian growth experience revisited from the perspective of a neoclassical model," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 15(3), pages 359-376, July.
  6. Funke, Michael & Chen, Xi, 2012. "The dynamics of catch-up and skill and technology upgrading in China," BOFIT Discussion Papers 13/2012, Bank of Finland, Institute for Economies in Transition.
  7. Agenor, Pierre-Richard & Dinh, Hinh T., 2013. "Public policy and industrial transformation in the process of development," Policy Research Working Paper Series 6405, The World Bank.

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