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Resource Intra-Actions And Inter-Actions: Implications For Technological Change And Economic Growth

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Author Info
Voxi Heinrich Amavilah (Glendale & REEPS)

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Abstract

W. Arthur Lewis’s distinction between factors and forces of production, and Paul Romer’s insightful identification of the poverty of objects and the lack of ideas, as central to economic growth rate differences across economies, have enriched economic growth theory. However, both object- idea gaps, and factor-force specialization do not make explicit intra- actions among objects and ideas on the one hand, and the inter-actions among objects and ideas on the other hand. This analysis shows that resource intra-actions and inter-actions are important to technological change, and hence to economic growth. Economies with strong positive resource intra- and inter-actions produce more output than others. In fact, intra- and inter-active economies are characterized by economies of scale (increasing returns in the broad sense) and would produce twice as much output as others, and their rates of growth are high because of it. How useful this analysis can be to policy is left to empirical investigations.

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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0508004.

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Length: 15 pages
Date of creation: 19 Aug 2005
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Handle: RePEc:wpa:wuwpge:0508004

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Related research
Keywords: resource intra-actions; resource inter-actions; intra-active and inter-active technological change; Lewis-Romer economic growth model;

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Find related papers by JEL classification:
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December. [Downloadable!] (restricted)
  3. Mark Rogers, 2003. "A Survey of Economic Growth," The Economic Record, The Economic Society of Australia, vol. 79(244), pages 112-135, 03. [Downloadable!] (restricted)
  4. Romer, Paul, 1993. "Idea gaps and object gaps in economic development," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 543-573, December. [Downloadable!] (restricted)
  5. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
    Other versions:
  6. Graca, Job & Jafarey, Saqib & Philippopoulos, Apostolis, 1995. " Interaction of Human and Physical Capital in a Model of Endogenous Growth," Economic Change and Restructuring, Springer, vol. 28(2-3), pages 93-118.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Amavilah, Voxi Heinrich, 2007. "The effects of technology-as-knowledge on the economic performance of developing countries: An econometric analysis using annual publications data for Botswana, Namibia, and South Africa, 1976-2004," MPRA Paper 3482, University Library of Munich, Germany. [Downloadable!]
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