Mao, Zi-Ying (2012): Learning-by-Doing and Its Implications for Economic Growth and International Trade.
This is the latest version of this item.
Download (439kB) | Preview
By adding physical capital as a factor of production, and by introducing capital accumulation and population growth, I generalized the model of learning-by-doing proposed by Young (1991). Under this extended model, I studied the evolution of human capital formulated by learning-by-doing, its effects on long run growth and intertemporal welfare, the dynamic effects of trade between two countries with different initial stocks of knowledge, and the effects of saving rate and population growth rate of each country. In addition to confirming Young’s original conclusion that the country with less (more) initial stock of knowledge enjoys lower or the same (higher or the same) growth rates of technical progress and per capita GDP than those enjoyed under autarky, I have shown that the learning-by-doing progress is the source of long-run sustainable growth, both of which exhibit higher rates of growth with an increase in the country’s saving rate or population growth rate. In addition, the dynamic behaviors of both countries’ intertemporal welfare, as well as their relationships with both countries’ saving rates and population growth rates have also been discussed in detail.
|Item Type:||MPRA Paper|
|Original Title:||Learning-by-Doing and Its Implications for Economic Growth and International Trade|
|Keywords:||Learning-by-Doing; Human Capital; Technical Progress; Intertemporal Welfare; Sustainable Growth; International Trade|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes
F - International Economics > F1 - Trade > F19 - Other
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
|Depositing User:||Zi-Ying Mao|
|Date Deposited:||25. Oct 2012 09:12|
|Last Modified:||01. Mar 2013 17:39|
Acemoglu, D. (1996). A Microfoundation for Social Increasing Returns in Human Capital Accumulation. Quarterly Journal of Economics, 111(3), 779-804.
Alchian, A. (1963). Reliability of Progress Curves in Airframe Production. Econometrica, 31(4), 679-93.
Bardhan, P. K. (1971). Economic Growth, Development and Foreign Trade. New York: Wiley.
Branson, W. H. and Junz, H. B. (1971). Trends in U.S. Trade and Comparative Advantage. Brookings Papers on Economic Activity, 1971(2), 285-338.
Becker, G. S. (1962). Investment in Human Capital: A Theoretical Analysis. Journal of Political Economy, 70(5), 9-49.
_________. (2008). Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education. Second Edition. Chicago and London: The University of Chicago Press.
Bloom, D. E., Canning, D. and Sevilla, J. (2004). The Effect of Health on Economic Growth: A Production Function Approach. World Development, 32(1), 1–13.
Clemhout, S. and Wan, H. Y. (1970). Learning-by-doing and infant industry protection. Review of Economic Studies, 37(1), 33-56.
Dutton, J. M. and Thomas, A. (1984). Treating Progress Functions as a Managerial Opportunity. The Academy of Management Review, 9(2), 235-47.
Ericsson, K. A. (2006). The Influence of Experience and Deliberate Practice on the Development of Superior Expert Performance. In K. A. Ericsson, N. C. Charness, P. J. Feltovich and R. R. Hoffman (eds.), the Cambridge handbook of expertise and expert performance, 683-703, New York: Cambridge University Press.
Findlay, R. and Kierzkowski, H. (1983). International Trade and Human Capital: A Simple General Equilibrium Model. Journal of Political Economy, 91(6), 957-78.
_________. (1980). The Terms of Trade and Equilibrium Growth in the World Economy. American Economic Review, 70(3), 291-9.
_________. (1984). Growth and Development in Trade Models. In Jones, R. W. & Kenen, P. B. (eds.), Handbook of International Economics, 185-236, New York: Elsevier Science Publishers.
_________. (1995). Factor Proportions, Trade, and Growth, Cambridge: The MIT Press.
Hall, R. and Jones, C. (1999). Why Do Some Countries Produce So Much More Output per Worker than Others? Quarterly Journal of Economics, 114(1), 83-116.
Hirsch, W. Z. (1956). Firm Progress Ratios. Econometrica, 24(2), 136-43.
Jaffe, A. B. (1986). Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value. American Economic Review, 76(5), 984-1001.
Jones, C. I. (1995). R&D-Based Models of Economic Growth. Journal of Political Economy, 103(4), 759-784.
Jones, R. W. and Neary, J. P. (1984). The Positive Theory of International Trade. In Jones, R. W. and Kenen, P. B (eds.), Handbook of International Economics, 1-62, New York: Elsevier Science Publishers.
Kenen, P. B. (1965). Nature, Capital and Trade. Journal of Political Economy, 73(5), 437-60.
Leontief, W. W. (1953). Domestic Production and Foreign Trade: The American Capital Position Re-examined. Proceedings of the American Philosophical Society, 97(4), 332-49.
Lewis, W. A. (1954). Economic Development with Unlimited Supplies of Labour. The Manchester School, 22(2), 139-91.
Lucas, R. E. Jr. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics, 22(1), 3-42.
Mankiw, N. G., Romer, D. and Weil, D. (1992) A Contribution to the Empirics of Economic Growth. Quarterly Journal of Economics, 107(2), 407-37.
Romer, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002-37.
Rosenberg, N. (1982). Inside the Black Box: Technology and Economics. Cambridge: Cambridge University Press.
Rybczynski, T. M. (1955) Factor Endowment and Relative Commodity Prices. Economica, 22, 336–41.
Schultz, T. W. (1981). Investing in People. Berkeley: University of California Press.
Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70(1), 65-94.
Strauss, J. and Thomas, D. (1998). Health, Nutrition, and Economic Development. Journal of Economic Literature, 36(2), 766-817.
Teubal, M. (1973). Comparative Advantage and Technological Change: The Learning-by-Doing Case. Journal of International Economics, 3(2), 161-77.
Weil, D. N. (2005). Economic Growth, Addison-Wesley.
Wright, T. P. (1956). Factors Affecting the Cost of Airplanes. Journal of the Aeronautical Sciences, 3, 122-8.
Young, A. (1991). Learning by Doing and the Dynamic Effects of International Trade. Quarterly Journal of Economics, 106(2), 369-405.
Available Versions of this Item
Learning-by-Doing and Its Implications for Economic Growth and International Trade. (deposited 18. Jul 2012 10:01)
- Learning-by-Doing and Its Implications for Economic Growth and International Trade. (deposited 25. Oct 2012 09:12) [Currently Displayed]