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The dynamics of catch-up and skill and technology upgrading in China

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  • Chen, Xi
  • Funke, Michael

Abstract

This paper accounts for China.s economic growth since 1980 in a unified endogenous growth model in which a sequencing of physical capital accumulation, human capital ac-cumulation and innovation drives the rise in China.s aggregate income. The first stage is characterized by physical capital accumulation. The second stage includes both physical and human capital accumulation, and in the final stage innovation is added to the mix. Model calibrations indicate that the growth model can generate a trajectory that accords well with the different stages of development in China.

Suggested Citation

  • Chen, Xi & Funke, Michael, 2012. "The dynamics of catch-up and skill and technology upgrading in China," BOFIT Discussion Papers 13/2012, Bank of Finland Institute for Emerging Economies (BOFIT).
    • Handle: RePEc:zbw:bofitp:bdp2012_013
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    3. Chen, Yu-Fu & Funke, Michael & Tao, Kunyu, 2015. "Financial market reform – A new driver for China's economic growth?," BOFIT Discussion Papers 5/2015, Bank of Finland Institute for Emerging Economies (BOFIT).
    4. Vivek Jadhav & Brinda Viswanathan, 2023. "Spatial Durbin Model of Regional Incomes in India: The Role of Public, Private and Human Capital," Working Papers 2023-243, Madras School of Economics,Chennai,India.
    5. Pierre‐Richard Agénor & Barış Alpaslan, 2018. "Infrastructure And Industrial Development With Endogenous Skill Acquisition," Bulletin of Economic Research, Wiley Blackwell, vol. 70(4), pages 313-334, October.
    6. King Yoong Lim, 2017. "Assessing The Double-Edged Sword Of Using Imitation As A Stepping Stone To Innovation: A Case Of Malaysia’S K-Economy Puzzle," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(01), pages 131-159, November.
    7. Lim, King Yoong, 2019. "Industrial Transformation With Heterogeneous Labor And Foreign Experts," Macroeconomic Dynamics, Cambridge University Press, vol. 23(8), pages 3225-3266, December.
    8. Ibtissem Aribi & Lobna Ben Hassen, 2021. "Phases Of Economic Development In An Endogenous Growth Model With Innovation And Education," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 6(2), pages 78-87, September.
    9. 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.
    10. Baris Alpaslan, 2015. "Public Spending and Transitional Dynamics of an Innovation-Based Growth Model," Centre for Growth and Business Cycle Research Discussion Paper Series 199, Economics, The University of Manchester.
    11. Agénor, Pierre-Richard & Dinh, Hinh T., 2015. "Social capital, product imitation and growth with learning externalities," Journal of Development Economics, Elsevier, vol. 114(C), pages 41-54.
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    14. Antony, Jürgen & Klarl, Torben, 2022. "Poverty and sustainable development around the world during transition periods," Energy Economics, Elsevier, vol. 110(C).

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    More about this item

    Keywords

    China; economic growth; transitional dynamics;
    All these keywords.

    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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