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Knowledge and development : a cross-section approach

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  • Chen, Derek H. C.
  • Dahlman, Carl J.
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    Abstract

    This paper assesses the effects of knowledge on economic growth. By using an array of indicators, each of which represents an aspect of knowledge, as independent variables in cross-section regressions that span 92 countries for the period 1960 to 2000, they show that knowledge is a significant determinant of long-term economic growth. In particular, the authors find that the stock of human capital, the level of domestic innovation and technological adaptation, and the level of information and communications technologies (ICT) infrastructure all exert statistically significant positive effects on long-term economic growth. More specifically with regard to the growth effects of the human capital stock, they find that an increase of 20 percent in the average years of schooling of a population tends to increase the average annual economic growth by 0.15 percentage point. In terms of innovation, the authors find that a 20 percent increase in the annual number of USPTO patents granted is associated with an increase of 3.8 percentage points in annual economic growth. Lastly, when the ICT infrastructure, measured by the number of telephones per 1,000 persons, is increased by 20 percent, they find that annual economic growth tends to increase by 0.11 percentage point.

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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3366.

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    Date of creation: 01 Aug 2004
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    Handle: RePEc:wbk:wbrwps:3366

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    Keywords: Environmental Economics&Policies; Labor Policies; Public Health Promotion; Economic Theory&Research; Health Monitoring&Evaluation; Environmental Economics&Policies; Economic Growth; Health Monitoring&Evaluation; Achieving Shared Growth; Economic Theory&Research;

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    Cited by:
    1. Casadio, Paolo & Paradiso, Antonio & Rao, B. Bhaskara, 2011. "Estimates of the steady state growth rates for the Scandinavian countries: a knowledge economy approach," MPRA Paper 31606, University Library of Munich, Germany.
    2. Zizi GOSCHIN & Daniela Luminita CONSTANTIN, 2007. "Romania's Development towards the Knowledge Economy: the ICT Dimension," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 0(1), pages 128-136.
    3. Hiau Looi Kee & Chen, Derek H. C., 2005. "A model on knowledge and endogenous growth," Policy Research Working Paper Series 3539, The World Bank.
    4. Chen, Derek H. C. & Gawande, Kishore, 2007. "Underlying dimensions of knowledge assessment : factor analysis of the knowledge assessment methodology data," Policy Research Working Paper Series 4216, The World Bank.
    5. Itzhak Goldberg & John Gabriel Goddard & Smita Kuriakose & Jean-Louis Racine, 2011. "Igniting Innovation : Rethinking the Role of Government in Emerging Europe and Central Asia," World Bank Publications, The World Bank, number 2358, October.

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