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Co-evolutionary growth: A system dynamics model

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  • Castellacci, Fulvio

Abstract

The paper presents a new modelling approach for the study of co-evolutionary economic growth. The system dynamics model studies the interactions between four main dimensions: physical capital, R&D and innovation, human capital, and population dynamics. These factors interact with each other in a complex manner, leading to co-evolutionary growth of the economic system. The model generates nonlinearities and multiple growth trajectories, determined by countries’ structural characteristics and policy parameters. Developing economies that are able to activate and support synergies among their main growth engines can achieve a faster catch up process and more sustained income per capita level in the long-run than countries characterized by weak co-evolutionary dynamics.

Suggested Citation

  • Castellacci, Fulvio, 2018. "Co-evolutionary growth: A system dynamics model," Economic Modelling, Elsevier, vol. 70(C), pages 272-287.
    • Handle: RePEc:eee:ecmode:v:70:y:2018:i:c:p:272-287
    DOI: 10.1016/j.econmod.2017.11.010
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    Cited by:

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    3. He, Qichun, 2018. "Inflation and health in a Schumpeterian growth model: Theory and evidence," Economic Modelling, Elsevier, vol. 75(C), pages 159-168.

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    More about this item

    Keywords

    Co-evolution; System dynamics; Simulation analysis; Multiple equilibria; Nonlinear growth;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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