Macroeconomics: Principles, Applications, and Tools
|
|
- Everett Patterson
- 5 years ago
- Views:
Transcription
1 Macroeconomics: Principles, Applications, and Tools NINTH EDITION Chapter 8 Why Do Economies Grow?
2 Learning Objectives 8.1 Calculate economic growth rates. 8.2 Explain the role of capital in economic growth. 8.3 Explain the importance of technological progress to economic growth. 8.4 Discuss the sources of technological progress. 8.5 Assess the role of government in assisting economic growth.
3 8.1 ECONOMIC GROWTH RATES Capital deepening Increases in the stock of capital per worker. Technological progress More efficient ways of organizing economic affairs that allow an economy to increase output without increasing inputs. Human capital The knowledge and skills acquired by a worker through education and experience and used to produce goods and services.
4 What Is Economic Growth? Economic growth means an expanded production possibilities curve (PPC).
5 8.1 ECONOMIC GROWTH RATES Measuring Economic Growth Real GDP per capita Gross domestic product per person adjusted for changes in prices. It is the usual measure of living standards across time and between countries. Growth rate The percentage rate of change of a variable from one period to another.
6 8.1 ECONOMIC GROWTH RATES Measuring Economic Growth Rule of 70 A rule of thumb that says output will double in 70/x years, where x is the percentage rate of growth.
7 8.1 ECONOMIC GROWTH RATES Comparing the Growth Rates of Various Countries TABLE 8.1 Real Expenditures Per Capita and Economic Growth Country Real Expenditures Per Capita for 2011 in 2005 Dollars Per Capita Growth Rate, United States $42, % United Kingdom 32, France 31, Japan 30, Italy 29, Mexico 12, Costa Rica 10, India 3, Pakistan 2, Nigeria 2, Zambia 2, SOURCES: Penn World Table Version 8.0, Center for International Comparisons at the University of Pennsylvania (CICUP), accessed March 2015.
8 8.1 ECONOMIC GROWTH RATES Are Poor Countries Catching Up? Convergence The process by which poorer countries close the gap with richer countries in terms of real GDP per capita. Each point on the graph represents a different currently developed country. Notice that the countries with the lowest per capita incomes in 1870 (shown along the horizontal axis) are plotted higher on the graph. In other words, the tendency was for countries with lower levels of initial income to grow faster. SOURCE: M. Obstfeld and K. Rogoff, Foundations of International Macroeconomics (Cambridge, MA: MIT Press, 1996), Table 7.1.
9 APPLICATION 1 GLOBAL WARMING, RICH COUNTRIES, AND POOR COUNTRIES APPLYING THE CONCEPTS #1: How may global warming affect economic growth? The effects of global warming on economic development are very complex The effect of increases in temperature seem to be confined to poor countries In Latin and South America, each 1 degree Celsius increase resulted in a 1.2 to 1.9 percent decline in per capita income Exports also declined between 2.0 and 5.7 percent. By deferring global warming into the future, poor countries may have time to develop and avoid the worst of the impact.
10 APPLICATION 2 BEHAVIORAL INCENTIVES IN DEVELOPMENT APPLYING THE CONCEPTS #2: How can we persuade very poor people in developing countries to immunize their children? Public health officials in India noticed that parents typically would begin to get vaccines for their children, but often failed to finish the entire sequence of vaccines. Were their incentives that might work? Ester Duflo and Abhijit Banerjee of MIT persuaded a group trying to increase immunizations to experiment with economic incentives. In the experiment, parents would receive some dal (a common Indian food) after each shot for their children. When they completed the entire sequence of shots, they would receive a set of cooking pans. The incentive worked extremely well in increasing the success rate for immunizations.
11 8.2 CAPITAL DEEPENING An increase in the supply of capital will shift the production function upward, as shown in Panel A and increase the demand for labor, as shown in Panel B. Real wages will increase from W 1 to W 2, and potential output will increase from Y 1 to Y 2.
12 8.2 CAPITAL DEEPENING Saving and Investment Saving Income that is not consumed. C + S = Y C + I = Y S = I
13 8.2 CAPITAL DEEPENING How Do Population Growth, Government, and Trade Affect Capital Deepening? PRINCIPLE OF DIMINISHING RETURNS Suppose output is produced with two or more inputs, and we increase one input while holding the other input or inputs fixed. Beyond some point called the point of diminishing returns output will increase at a decreasing rate. If the government raises taxes by $100 and the people tend to save 20 percent of changes in income, then private savings and investment will fall by $20. However, if the government invests the funds, then total investment private and public will increase by $80.
14 8.3 THE KEY ROLE OF TECHNOLOGICAL PROGRESS How Do We Measure Technological Progress? Growth accounting A method to determine the contribution to economic growth from increased capital, labor, and technological progress. Y = F(K, L) Y = F(K, L, A)
15 8.3 THE KEY ROLE OF TECHNOLOGICAL PROGRESS How Do We Measure Technological Progress?
16 APPLICATION 3 SOURCES OF GROWTH IN CHINA AND INDIA APPLYING THE CONCEPTS #3: How can we use economic analysis to understand the sources of growth in different countries? China and India are the two most populous countries and have also grown very rapidly in recent years. From 1978 to 2004, GDP in China grew at the rate of 9.3 percent per year while India s GDP grew at a lower rate of 5.4 percent per year. Economists Barry Bosworth from the Brookings Institution and Susan Collins from the University of Michigan used growth accounting to answer this question. China s rapid growth was caused by more rapid accumulation of physical capital and more rapid technological progress. China invested much more in physical capital and was able to increase its technological progress at a more rapid rate.
17 8.3 THE KEY ROLE OF TECHNOLOGICAL PROGRESS Using Growth Accounting Growth accounting is a useful tool for understanding different aspects of economic growth. As an example, economic growth slowed throughout the entire world during the 1970s. Using growth accounting methods, economists typically found the slowdown could not be attributed to changes in the quality or quantity of labor inputs or to capital deepening. Either a slowdown in technological progress or other factors not directly included in the analysis, such as higher worldwide energy prices, must have been responsible. This led economists to suspect that higher energy prices were the primary explanation for the reduction in economic growth.
18 Using Growth Accounting Labor productivity Output per hour of work, labor productivity is a simple measure of how much a typical worker can produce given the amount of capital in the economy and the state of technological progress. From 1947 to the worldwide oil crisis in 1973, labor productivity grew rapidly. Productivity growth fell in the remainder of the 1970s and slowly increased over the next two decades. Since 2007, productivity growth has also slowed from recent trends, partly due to the recession. Economists have used growth accounting to help explain these trends in productivity growth in the United States. Economic research suggests that the oil shocks in the 1970s reduced technological progress but the information revolution in the 1980s and 1990s led to a resurgence of technological progress. SOURCE: Bureau of Labor Statistics, 2015.
19 APPLICATION 4 THE END OF GROWTH? APPLYING THE CONCEPTS #4: Can we predict future productivity growth from past historical episodes? Robert J. Gordon a professor of economics at Northwestern University, has recently predicted that economic growth in the U.S. in this century will be only slightly positive and very close to zero. Why is Gordon so pessimistic? Gordon notes that economic growth as we know it is a fairly recent phenomenon in world history. The U.S. has had robust growth over its history, but major innovations were concentrated in three waves. The first wave, , centered on steam generation and railroads. The second wave, , was driven by electricity ad communications. The third wave, 1960 present, was generated by telecommunications and computers. Based on work in growth accounting, Gordon thinks we may have exhausted the benefits of the third wave of innovations. Others believe that computer technology and global interconnectedness of the Internet will allow room or more growth.
20 8.4 WHAT CAUSES TECHNOLOGICAL PROGRESS? Research and Development Funding The United States spends more total money than any other country on research and development. However, when the spending is measured as a percentage of each nation s GDP, Japan spends more. A big part of U.S. spending on research and development is in defense-related areas. SOURCE: National Science Foundation, National Patterns of R&D Resources, 2002, Washington D.C.
21 8.4 WHAT CAUSES TECHNOLOGICAL PROGRESS? Monopolies That Spur Innovation Creative destruction The view that a firm will try to come up with new products and more efficient ways to produce products to earn monopoly profits. The Scale of the Market Adam Smith stressed that the size of a market was important for economic development. In larger markets, firms have more incentives to come up with new products and new methods of production. The lure of profits guides the activities of firms, and larger markets provide firms the opportunity to make larger profits. This supplies another rationale for free trade. With free trade, markets are larger, and there is more incentive to engage in technological progress.
22 8.4 WHAT CAUSES TECHNOLOGICAL PROGRESS? Induced Innovations Some economists have emphasized that innovations come about through inventive activity designed specifically to reduce costs. This is known as induced innovation. Education, Human Capital, and the Accumulation of Knowledge Education can contribute to economic growth in two ways. First, the increased knowledge and skills of people complement our current investments in physical capital. Second, education can enable the workforce in an economy to use its skills to develop new ideas or to copy ideas or import them from abroad. New Growth Theory New growth theory Modern theories of growth that try to explain the origins of technological progress.
23 APPLICATION 5 THE ROLE OF POLITICAL FACTORS IN ECONOMIC GROWTH APPLYING THE CONCEPTS #5: How do varying political institutions affect economic growth? Growth can, and has, occurred in both authoritarian and participatory governments. Transformative economic growth like the Industrial Revolution usually requires participatory institutions. Sustained technological progress is disruptive and authoritarian regimes have difficulty dealing with the change. The old monarchies of Europe fell and were replaced with democracies or limited monarchies. Can China maintain strong economic growth without political transformation?
24 APPLICATION 6 CULTURE, EVOLUTION AND ECONOMIC GROWTH APPLYING THE CONCEPTS #6: Did culture or evolution spark the Industrial Revolution? In studying the economic history of England before the Industrial Revolution, Professor Clark discovered an interesting fact. He found that children of the more affluent members of English society were more likely to survive than those of the less affluent. With the slow growth of population over several centuries, this differential survival of the wealthy had the effect of creating downward mobility for the rich, as their sons and daughters increasingly populated the society. This change had profound effects on English society. The cultural habits of the rich filtered through the entire society. Social virtues such as thrift, prudence, and hard work became more commonplace, while impulsive and violent behaviors were reduced. Eventually, these changes in culture became sufficiently pronounced that a qualitative change took place in society.
25 8.5 A KEY GOVERNMENTAL ROLE: PROVIDING THE CORRECT INCENTIVES AND PROPERTY RIGHTS What is the connection between property rights and economic growth? Without clear property rights, there are no proper incentives to invest in the future the essence of economic growth. What else can go wrong? Governments in developing countries often: Adopt policies that effectively tax exports Pursue policies that lead to rampant inflation Enforce laws that inhibit the growth of the banking and financial sectors Results: Fewer exports Uncertain financial environment Reduced saving and investment With the right incentives, individuals and firms in developing countries will take actions that promote economic growth.
26 APPLICATION 7 LACK OF PROPERTY RIGHTS HINDERS GROWTH IN PERU APPLYING THE CONCEPTS #7: Why are clear property rights important for economic growth in developing countries? Throughout the developing world, property is often not held with clear title. Without clear title, property cannot be used as collateral for loans. Result: The poor living on very valuable land may be unable to borrow against that land to start a new business. Producing palm oil in Peru is very profitable, but it depends upon the ability to borrow funds. Production of coca paste an ingredient to cocaine does not take as much time and does not depend on finance. Switching farmers away from production of coca paste to palm oil also requires improvements in finance, which are very difficult without clear property rights.
27 Learning Objectives 8.1 Calculate economic growth rates. 8.2 Explain the role of capital in economic growth. 8.3 Explain the importance of technological progress to economic growth. 8.4 Discuss the sources of technological progress. 8.5 Assess the role of government in assisting economic growth.
28 KEY TERMS Capital deepening Convergence Creative destruction Growth accounting Growth rate Human capital Labor productivity New growth theory Real GDP per capita Rule of 70 Saving Technological progress
29 Questions? Homework Ch7, pp , 2.4, 3.4, 4.5, 6.5,6.6
30 APPENDIX A A MODEL OF CAPITAL DEEPENING PRINCIPLE OF DIMINISHING RETURNS Suppose output is produced with two or more inputs, and we increase one input while holding the other input or inputs fixed. Beyond some point called the point of diminishing returns output will increase at a decreasing rate. Holding labor constant, increases in the stock of capital increase output, but at a decreasing rate.
31 Saving and Depreciation as Functions of the Stock of Capital
32 APPENDIX A A MODEL OF CAPITAL DEEPENING Change in the stock of capital = saving - depreciation = sy - dk Starting at K 0, saving exceeds depreciation. The stock of capital increases. This process continues until the stock of capital reaches its long-run equilibrium at K*.
33 APPENDIX A A MODEL OF CAPITAL DEEPENING A higher saving rate will lead to a higher stock of capital in the long run. Starting from an initial capital stock of K 1, the increase in the saving rate leads the economy to K 2.
34 APPENDIX A A MODEL OF CAPITAL DEEPENING Technological progress shifts up the saving function and promotes capital deepening.
Objectives ECONOMIC GROWTH CHAPTER
9 ECONOMIC GROWTH CHAPTER Objectives After studying this chapter, you will able to Describe the long-term growth trends in the United States and other countries and regions Identify the main sources of
More informationWhy did the Japanese economy stop growing over time? Why did technological progress in Japan decline?
Discussion Guide for Why did Japan Stop Growing? a discussion with Professor Takeo Hoshi Organizing Questions Why did the Japanese economy stop growing over time? Why did technological progress in Japan
More informationProductivity and Economic Growth
9 Productivity and Economic Growth Productivity and Economic Growth Productivity: output per hour of work. Productivity growth: the percentage increase in productivity from one year to the next. Figure
More informationEC Chapter 1. Burak Alparslan Eroğlu. October 13, Burak Alparslan Eroğlu EC Chapter 1
EC 101 - Chapter 1 Burak Alparslan Eroğlu October 13, 2016 Outline Introduction to New Course Module Introduction to Unit 1 Hockey Stick Growth Capitalism Inequality Economics and Economy Introduction
More informationChapter 8. Technology and Growth
Chapter 8 Technology and Growth The proximate causes Physical capital Population growth fertility mortality Human capital Health Education Productivity Technology Efficiency International trade 2 Plan
More informationBASED ECONOMIES. Nicholas S. Vonortas
KNOWLEDGE- BASED ECONOMIES Nicholas S. Vonortas Center for International Science and Technology Policy & Department of Economics The George Washington University CLAI June 9, 2008 Setting the Stage The
More informationWhy is US Productivity Growth So Slow? Possible Explanations Possible Policy Responses
Why is US Productivity Growth So Slow? Possible Explanations Possible Policy Responses Presentation to Nomura Foundation Conference Martin Neil Baily and Nicholas Montalbano What is productivity and why
More informationUnit 1: The Economic Fundamentals Weeks How does scarcity impact the decisions individuals and societies must make?
Economics Teacher: Vida Unit 1: The Economic Fundamentals Weeks 1-4 Essential Questions 1. How does scarcity impact the decisions individuals and societies must make? 2. What roles do individuals and businesses
More informationOECD Science, Technology and Industry Outlook 2008: Highlights
OECD Science, Technology and Industry Outlook 2008: Highlights Global dynamics in science, technology and innovation Investment in science, technology and innovation has benefited from strong economic
More informationUnified Growth Theory and Comparative Economic Development. Oded Galor. AEA Continuing Education Program
Unified Growth Theory and Comparative Economic Development Oded Galor AEA Continuing Education Program Lecture II AEA 2014 Unified Growth Theory and Comparative Economic Development Oded Galor AEA Continuing
More informationTHE U.S. SEMICONDUCTOR INDUSTRY:
THE U.S. SEMICONDUCTOR INDUSTRY: KEY CONTRIBUTOR TO U.S. ECONOMIC GROWTH Matti Parpala 1 August 2014 The U.S. Semiconductor Industry: Key Contributor To U.S. Economic Growth August 2014 1 INTRO The U.S.
More informationChapter 3 What Economies Do Macroeconomics In Context (Goodwin, et al.)
Chapter 3 What Economies Do Macroeconomics In Context (Goodwin, et al.) Chapter Overview This chapter introduces the four essential economic activities: resource maintenance, the production of goods and
More informationCountry Innovation Brief: Costa Rica
Country Innovation Brief: Costa Rica Office of the Chief Economist for Latin America and the Caribbean Introduction: Why Innovation Matters for Development Roughly half of cross-country differences in
More informationMarkets for New Technology
Markets for New Technology Robert M. Coen Professor Emeritus of Economics Northwestern Alumnae Continuing Education February 16, 2017 Smith Was Pessimistic About Future of Market Systems Deadening effects
More informationTHE EVOLUTION OF TECHNOLOGY DIFFUSION AND THE GREAT DIVERGENCE
2014 BROOKINGS BLUM ROUNDTABLE SESSION III: LEAP-FROGGING TECHNOLOGIES FRIDAY, AUGUST 8, 10:50 A.M. 12:20 P.M. THE EVOLUTION OF TECHNOLOGY DIFFUSION AND THE GREAT DIVERGENCE Diego Comin Harvard University
More informationGlobal Trends in Patenting
Paper #229, IT 305 Global Trends in Patenting Ben D. Cranor, Ph.D. Texas A&M University-Commerce Ben_Cranor@tamu-commerce.edu Matthew E. Elam, Ph.D. Texas A&M University-Commerce Matthew_Elam@tamu-commerce.edu
More informationChapter 2 The Market. The Classical Approach
Chapter 2 The Market The economic theory of markets has been central to economic growth since the days of Adam Smith. There have been three major phases of this theory: the classical theory, the neoclassical
More informationChapter 6 Production
Chapter 6 Production Read Pindyck and Rubinfeld (2013), Chapter 6 2/5/2015 CHAPTER 6 OUTLINE 6.1 The Technology of Production 6.2 Production with One Variable Input (Labor) 6.3 Production with Two Variable
More informationAn Introduction to China s Science and Technology Policy
An Introduction to China s Science and Technology Policy SHANG Yong, Ph.D. Vice Minister Ministry of Science and Technology, China and Senior Fellow Belfer Center for Science and International Affairs
More informationINNOVATION DEVELOPMENT SECTORAL TRAJECTORIES OF THE SOUTH RUSSIAN REGIONS Igor ANTONENKO *
INNOVATION DEVELOPMENT SECTORAL TRAJECTORIES OF THE SOUTH RUSSIAN REGIONS Igor ANTONENKO * Abstract: The paper investigates the technological trajectories of innovation-based development of the South Russian
More informationWhy is US Productivity Growth So Slow? Possible Explanations Possible Policy Responses
Why is US Productivity Growth So Slow? Possible Explanations Possible Policy Responses Presentation to Brookings Conference on Productivity September 8-9, 2016 Martin Neil Baily and Nicholas Montalbano
More informationHow New Jersey's Economy Benefits from International Trade & Investment
How New Jersey's Economy Benefits from International Trade & Investment With more than 95 percent of the world s population and 80 percent of the world s purchasing power outside the United States, future
More informationTechnological Change, Population, and Growth
Technological Change, Population, and Growth BCPM0058. ECONOMICS Dr. Kumar Aniket Bartlett School of Construction & Project Management Lecture 2 LOOKING BACK The recent rapid, sustained increase in income
More informationTHE MACROECONOMICS OF THE GLOBAL TECHNOLOGY ECONOMY. Howard A. Rubin
THE MACROECONOMICS OF THE GLOBAL TECHNOLOGY Howard A. Rubin well surpassing such investment by the United States and every other country. The Dow Jones Industrial index no longer exists, replaced by a
More informationProduction C H A P T E R. Prepared by: Fernando & Yvonn Quijano
C H A P T E R 6 Production Prepared by: Fernando & Yvonn Quijano CHAPTER 3 OUTLINE 6.1 The Technology of Production 6.2 Production with One Variable Input (Labor) 6.3 Production with Two Variable Inputs
More informationCOMPETITIVNESS, INNOVATION AND GROWTH: THE CASE OF MACEDONIA
COMPETITIVNESS, INNOVATION AND GROWTH: THE CASE OF MACEDONIA Jasminka VARNALIEVA 1 Violeta MADZOVA 2, and Nehat RAMADANI 3 SUMMARY The purpose of this paper is to examine the close links among competitiveness,
More informationProduction C H A P T E R. Production CHAPTER 6 OUTLINE. 6.1 The Technology of Production. 6.2 Production with One Variable Input (Labor)
C H A P T E R 6 Production Prepared by: Fernando & Yvonn Quijano CHAPTER 6 OUTLINE 6.1 The Technology of Production Production with One Variable Input (Labor) Production with Two Variable Inputs 6.4 Returns
More informationMissouri Economic Indicator Brief: Manufacturing Industries
Missouri Economic Indicator Brief: Manufacturing Industries Manufacturing is a major component of Missouri s $293.4 billion economy. It represents 13.1 percent ($38.5 billion) of the 2015 Gross State Product
More informationDr. Greg Hallman Director, Real Estate Finance and Investment Center (REFIC) McCombs School of Business University of Texas at Austin
Dr. Greg Hallman Director, Real Estate Finance and Investment Center (REFIC) McCombs School of Business University of Texas at Austin POWERPOINT PARTNER } The US Economy today, with a close look at jobs
More informationEconomics 448 Lecture 13 Functional Inequality
Economics 448 Functional Inequality October 16, 2012 Introduction Last time discussed the measurement of inequality. Today we will look how inequality can influences how an economy works. Chapter 7 explores
More informationState Content Standards for Florida
Episode 101 What Is a Biz Kid? Episode 102 What Is Money? Episode 103 How Do You Get Money? Episode 104 What Can You Do with Money? Episode 105 Money Moves Episode 106 Taking Charge of Your Financial Future
More informationUnified Growth Theory
Unified Growth Theory Oded Galor PRINCETON UNIVERSITY PRESS PRINCETON & OXFORD Contents Preface xv CHAPTER 1 Introduction. 1 1.1 Toward a Unified Theory of Economic Growth 3 1.2 Origins of Global Disparity
More informationBRAZIL S COMPETITIVENESS CHALLENGES VIEWED FROM ITS COMPANIES
BRAZIL S COMPETITIVENESS CHALLENGES VIEWED FROM ITS COMPANIES WOODROW WILSON CENTER S BRAZIL INSTITUTE June 2013 KELLIE MEIMAN HOCK, MANAGING PARTNER MCLARTY ASSOCIATES Overview ECONOMIC POLITICAL + Brazil
More informationNEWS RELEASE FOR WIRE TRANSMISSION: 8:30 A.M. EDT, FRIDAY, APRIL 17, William Zeile: (202) BEA 09-14
NEWS RELEASE FOR WIRE TRANSMISSION: 8:30 A.M. EDT, FRIDAY, APRIL 17, 2009 William Zeile: (202) 606-9893 BEA 09-14 Summary Estimates for Multinational Companies: Employment, Sales, and Capital Expenditures
More informationWeighted deductions for in-house R&D: Does it benefit small and medium firms more?
No. WP/16/01 Weighted deductions for in-house R&D: Does it benefit small and medium firms more? Sunil Mani 1, Janak Nabar 2 and Madhav S. Aney 3 1 Visiting Professor, National Graduate Institute for Policy
More informationOesterreichische Nationalbank. Eurosystem. Workshops Proceedings of OeNB Workshops. Current Issues of Economic Growth. March 5, No.
Oesterreichische Nationalbank Eurosystem Workshops Proceedings of OeNB Workshops Current Issues of Economic Growth March 5, 2004 No. 2 Opinions expressed by the authors of studies do not necessarily reflect
More informationModule 5: Conditional convergence and long-run economic growth practice problems. (The attached PDF file has better formatting.)
Module 5: Conditional convergence and long-run economic growth practice problems (The attached PDF file has better formatting.) This posting gives sample final exam problems. Other topics from the textbook
More informationTHE IMPLICATIONS OF THE KNOWLEDGE-BASED ECONOMY FOR FUTURE SCIENCE AND TECHNOLOGY POLICIES
General Distribution OCDE/GD(95)136 THE IMPLICATIONS OF THE KNOWLEDGE-BASED ECONOMY FOR FUTURE SCIENCE AND TECHNOLOGY POLICIES 26411 ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Paris 1995 Document
More informationChapter 2: Effect of the economic crisis on R&D investment 60
Chapter 2: Effect of the economic crisis on R&D investment 60 Chapter 2 Effect of the economic crisis on R&D investment Highlights In 2008 2009, R&D expenditure was more resilient to the financial crisis
More informationHong Kong as a Knowledge-based Economy
Feature Article Hong Kong as a Knowledge-based Economy Many advanced economies have undergone significant changes in recent years. One of the key characteristics of the changes is the growing importance
More informationThe ICT industry as driver for competition, investment, growth and jobs if we make the right choices
SPEECH/06/127 Viviane Reding Member of the European Commission responsible for Information Society and Media The ICT industry as driver for competition, investment, growth and jobs if we make the right
More informationVTT TECHNOLOGY STUDIES. KNOWLEDGE SOCIETY BAROMETER Mika Naumanen Technology Studies VTT Technical Research Centre of Finland
KNOWLEDGE SOCIETY BAROMETER Mika Naumanen Technology Studies VTT Technical Research Centre of Finland Knowledge society barometer Economic survey -type of tool to assess a nation s inclination towards
More informationSEMICONDUCTOR INDUSTRY ASSOCIATION FACTBOOK
Factbook 2014 SEMICONDUCTOR INDUSTRY ASSOCIATION FACTBOOK INTRODUCTION The data included in the 2014 SIA Factbook helps demonstrate the strength and promise of the U.S. semiconductor industry and why it
More informationWorld Bank Experts Discuss Korea s Rapid Population Aging
World Bank Group Korea Office Newsletter NOVEMBER/DECEMBER 2015 World Bank Experts Discuss Korea s Rapid Population Aging A roundtable discussion draws implications from the latest World Bank report, Live
More informationHow economists apply the methods of science. Two simple models the circular flow and the production possibilities frontier.
CHPATER 2 Thinking Like an Economist LEARNING OBJECTIVES: How economists apply the methods of science. Two simple models the circular flow and the production possibilities frontier. The difference between
More informationWHY THE TECHNOLOGY ECONOMY MATTERS
WHY THE TECHNOLOGY ECONOMY MATTERS By Howard Rubin, Ralf Dreischmeier, Christophe Duthoit, and Hrishi Hrishikesh This is the second in a series of articles on technology economics. Despite technology s
More informationThe drivers of productivity dynamics over the last 15 years 1
The drivers of productivity dynamics over the last 15 years 1 Diego Comin Dartmouth College Motivation The labor markets have recovered to the level of activity before the Great Recession. In May 2016,
More informationAre large firms withdrawing from investing in science?
Are large firms withdrawing from investing in science? By Ashish Arora, 1 Sharon Belenzon, and Andrea Patacconi 2 Basic research in science and engineering is a fundamental driver of technological and
More informationAnalyze whether the People s Republic of China Government should issue currency with larger face value
2017 Analyze whether the People s Republic of China Government should issue currency with larger face value Good Hope School Ruby Leung Tiana Tsang Clarissa Wong Priscilla Yeung Background In 1984, China
More informationTechnology and Competitiveness in Vietnam
Technology and Competitiveness in Vietnam General Statistics Office, Hanoi, Vietnam July 3 rd, 2014 Prof. Carol Newman, Trinity College Dublin Prof. Finn Tarp, University of Copenhagen and UNU-WIDER 1
More informationMeasurement for Generation and Dissemination of Knowledge a case study for India, by Mr. Ashish Kumar, former DG of CSO of Government of India
Measurement for Generation and Dissemination of Knowledge a case study for India, by Mr. Ashish Kumar, former DG of CSO of Government of India This article represents the essential of the first step of
More informationKorea s Industries in the World Market (Shares and Ranking)
- 1 - - 2 - The Industrial Leader from an Unknown LDC in the 1960s Many think that HCI policies in the 70s established the basis of current Manufacturing-strong economy and HCI industries. Korea s Industries
More informationThe Evolution of Economies
38: 280 Economic Geography Unit IV The Evolution of Economies Outline 4.1 (Regional) Economic Development 4.2 Innovation and Geography 4.3 Techno-Economic Paradigms 4.4 The Geography of Innovation 4.5
More informationThe Research Agenda: Peter Howitt on Schumpeterian Growth Theory*
The Research Agenda: Peter Howitt on Schumpeterian Growth Theory* Over the past 15 years, much of my time has been spent developing a new generation of endogenous growth theory, together with Philippe
More informationImplications of the current technological trajectories for industrial policy New manufacturing, re-shoring and global value chains.
Implications of the current technological trajectories for industrial policy New manufacturing, re-shoring and global value chains Mario Cimoli You remember when most economists said that industrialization
More informationIGC South Asia Regional Conference. Ijaz Nabi March 18, 2014 Avari Hotel, Lahore
IGC South Asia Regional Conference Ijaz Nabi March 18, 2014 Avari Hotel, Lahore Pakistan s Growth Challenges GDP growth half historical trend rate Militancy and related law and order deterioration Macro-economic
More informationWORLD INTELLECTUAL PROPERTY ORGANIZATION. WIPO PATENT REPORT Statistics on Worldwide Patent Activities
WORLD INTELLECTUAL PROPERTY ORGANIZATION WIPO PATENT REPORT Statistics on Worldwide Patent Activities 2007 WIPO PATENT REPORT Statistics on Worldwide Patent Activities 2007 Edition WORLD INTELLECTUAL
More information2009 Executive Report
2009 Executive Report Abdul Ali I. Elaine Allen William D. Bygrave Julio De Castro Julian Lange Thomas S. Lyons Joseph Onochie Ivory Phinisee Edward Rogoff Al Suhu John Whitman Global Entrepreneurship
More informationInnovation. Key to Strengthening U.S. Competitiveness. Dr. G. Wayne Clough President, Georgia Institute of Technology
Innovation Key to Strengthening U.S. Competitiveness Dr. G. Wayne Clough President, Georgia Institute of Technology PDMA Annual Meeting October 23, 2005 Innovation Key to strengthening U.S. competitiveness
More informationThe Digital Divide. Factors that contribute towards widening the digital divide gap: Poverty. Education
The Digital Divide Digital Divide refers to the gap between those who benefit from digital technology and those who do not. It is the gap between those people with effective access to digital and information
More informationSCIENTIFIC RESEARCH AND INNOVATION - DECISIVE FACTORS OF BUSINESS PERFORMANCE
194ANNALS OF THE UNIVERSITY OF CRAIOVA ECONOMIC SCIENCES Year XXXXI No. 39 2011 SCIENTIFIC RESEARCH AND INNOVATION - DECISIVE FACTORS OF BUSINESS PERFORMANCE Spiridon Cosmin Alexandru Ph. D Student University
More informationA NOBEL PRIZE MEMORIAL PRIZE LAUREATE IN ECONOMICS WHO HAS INSPIRED ME
A NOBEL PRIZE MEMORIAL PRIZE LAUREATE IN ECONOMICS WHO HAS INSPIRED ME Before I begin my story on how this special man called Robert Merton Solow inspired me, I would like to quote one of his humble statements;
More informationResearch and Development Spending
Patented Medicine Prices Review Board Le Conseil d examen du prix des médicaments brevetés PMPRB Study Series S-217 December 22 A Comparison of Pharmaceutical Research and Development Spending in Canada
More informationWhat type of Entrepreneurs (Entrepreneurship) do we need for Economic Development?
Entrepreneurs and their role in Economic Development Entrepreneurs, firms and business membership organizations: their role in politics and development Leipzig, Germany, 29th 31th October 2014 Prof. Dr.
More informationCanada's Cost Competitiveness: An Exchange Rate and Productivity Story
's Cost Competitiveness: An Exchange Rate and Productivity Story Andrew Sharpe Executive Director Centre for the Study of Living Standards Presented at the 57 th NABE Annual Meeting Session on North American
More informationResearch of Tender Control Price in Oil and Gas Drilling Engineering Based on the Perspective of Two-Part Tariff
4th International Education, Economics, Social Science, Arts, Sports and Management Engineering Conference (IEESASM 06) Research of Tender Control Price in Oil and Gas Drilling Engineering Based on the
More informationINTELLECTUAL PROPERY RIGHTS: ECONOMY Vs SCIENCE &TECHNOLOGY. Sankar Narayanan.S System Analyst, Anna University Coimbatore
Volume 1 Issue 1 May 2010 pp. 6-10 http://www.iaeme.com/ijipr.html I J I P R I A E M E INTELLECTUAL PROPERY RIGHTS: ECONOMY Vs SCIENCE &TECHNOLOGY ABSTRACT Sankar Narayanan.S System Analyst, Anna University
More informationOECD Science, Technology and Industry Outlook 2010 Highlights
OECD Science, Technology and Industry Outlook 21 OECD 21 OECD Science, Technology and Industry Outlook 21 Highlights Innovation can play an important role in the economic recovery Science, technology and
More informationLabor and Capital without Technology. Labor Alone. Figure 21-1
Labor and Capital without Technology 549 theory of economic growth that helps answer these and many other questions. The theory of economic Figure 21-1 Productivity Growth during the Past 300 Years Productivity
More informationWho Invents IT? March 2007 Executive Summary. An Analysis of Women s Participation in Information Technology Patenting
March 2007 Executive Summary prepared by Catherine Ashcraft, Ph.D. National Center for Women Anthony Breitzman, Ph.D. 1790 Analytics, LLC For purposes of this study, an information technology (IT) patent
More informationBig Tech & Global Finance
Big Tech & Global Finance Tony Norfield tonynorfield@gmail.com DECODE Symposium, 16 October 2018 Overview 1. Big tech corporations dominate equity markets 2. A privileged position to consolidate power:
More informationImpact of Information Technology on Construction Industry
Impact of Information Technology on Construction Industry Dr. Kailash Mohapatra 1, Dr. Dipti Prasad Mishra 2 1Professor, Department of Mechanical Engineering, REC, Bhuaneswar, Odisha, India 2Professor,
More informationand itseffectsin Rom ania
86 Current Economic Crisis and itseffectsin Rom ania ~ Prof. Ph. D. (FacultyofEconomicsandBusinessAdministration,West ~ Assist. Prof. Ph. D. (FacultyofEconomicsandBusinessAdministration, Abstract: createdforthesociety.
More informationRevised Course Outlines & Pattern of Examinations in the subject of Economics for BA/B.Sc. w.e.f. 1 st Annual Examinations 2018 & onwards
Annexure - 1 Revised Course Outlines & Pattern of Examinations in the subject of Economics for BA/B.Sc. w.e.f. 1 st Annual Examinations 2018 & onwards Paper A: Microeconomics &Basic Mathematical Economics
More informationTHE ROLE OF TECHNOLOGY IN GROWTH
Chapter 8 THE ROLE OF TECHNOLOGY IN GROWTH Modified for EC 375 by Bob Murphy Technology and Productivity Growth Produc(vity gains are an important source of growth and differences in produc(vity levels
More informationJapan s business system has changed significantly since 2000, shifting toward
1 Continuity and Change in Japan s Ecosystem for Venture-Capital backed Start-up Companies: Encouraging the Creation of Firms to Stimulate Economic Growth and Jobs Japan s business system has changed significantly
More informationOECD s Innovation Strategy: Key Findings and Policy Messages
OECD s Innovation Strategy: Key Findings and Policy Messages 2010 MIT Europe Conference, Brussels, 12 October Dirk Pilat, OECD dirk.pilat@oecd.org Outline 1. Why innovation matters today 2. Why policies
More informationCauses & Impact of Industrialization
Causes & Impact of Industrialization From Agriculture to Industry At the time of the Civil War, the leading source of economic growth was agriculture. Forty years later, manufacturing had taken its place.
More informationNational Innovation System of Mongolia
National Innovation System of Mongolia Academician Enkhtuvshin B. Mongolians are people with rich tradition of knowledge. When the Great Mongolian Empire was established in the heart of Asia, Chinggis
More information1. Introduction The Current State of the Korean Electronics Industry and Options for Cooperation with Taiwan
1. Introduction The fast-changing nature of technological development, which in large part has resulted from the technology shift from analogue to digital systems, has brought about dramatic change in
More informationLETTER FROM THE EXECUTIVE DIRECTOR FOREWORD BY JEFFREY KRAUSE
LETTER FROM THE EXECUTIVE DIRECTOR Automation is increasingly becoming part of our everyday lives, from self-adjusting thermostats to cars that parallel park themselves. 18 years ago, when Automation Alley
More informationResearch on the Sustainable Development of Animation Industry Cluster Based on Diamond Model Ke LIU 1,a,*, Xiao-cong DU 2,b
216 3 rd International Conference on Economics and Management (ICEM 216) ISBN: 978-1-6595-368-7 Research on the Sustainable Development of Animation Industry Cluster Based on Diamond Model Ke LIU 1,a,*,
More information2014 PRODUCTION FORECASTS FOR THE GLOBAL ELECTRONICS AND INFORMATION TECHNOLOGY INDUSTRIES
PRODUCTION FORECASTS FOR THE GLOBAL ELECTRONICS AND INFORMATION TECHNOLOGY INDUSTRIES December 24, JAPAN ELECTRONICS AND INFORMATION TECHNOLOGY INDUSTRIES ASSOCIATION FOREWORD For the Japanese economy,
More informationGeneral aspects of the technological approach to international trade
General aspects of the technological approach to international trade Innovation and Trade Shumpeter: the entrepreneur-innovator has a key role in the introduction of new goods and technology in the economy
More informationUniversity of Vermont Economics 260: Technological Change and Capitalist Development
University of Vermont Economics 260: Technological Change and Capitalist Development Fall 2010 Tuesday & Thursday, 11:30-12:45 Old Mill 221 Professor Ross Thomson Office: Old Mill Room 342 E-Mail: ross.thomson@uvm.edu
More informationAP World History (Povletich) CHAPTER 30 OUTLINE The Making of Industrial Society
AP World History (Povletich) CHAPTER 30 OUTLINE The Making of Industrial Society BACKGROUND KNOWLEDGE: The previous chapter describes the dramatic political changes that followed the American and French
More informationINTRODUCTION. The 2015 Brookings Blum Roundtable was convened to explore how digital technologies might disrupt global development.
INTRODUCTION The 2015 Brookings Blum Roundtable was convened to explore how digital technologies might disrupt global development. Our intention was to imagine a world 10 years from now where digital technologies
More informationTHE INTERNATIONALIZATION OF CORPORATE R&D AND THE DEVELOPMENT OF AUTOMOTIVE R&D IN EAST-CENTRAL EUROPE
THE INTERNATIONALIZATION OF CORPORATE R&D AND THE DEVELOPMENT OF AUTOMOTIVE R&D IN EAST-CENTRAL EUROPE Petr Pavlínek University of Nebraska at Omaha, USA Charles University in Prague, Czechia CHANGING
More informationOesterreichische Nationalbank. Eurosystem. Workshops Proceedings of OeNB Workshops. Current Issues of Economic Growth. March 5, No.
Oesterreichische Nationalbank Eurosystem Workshops Proceedings of OeNB Workshops Current Issues of Economic Growth March 5, 2004 No. 2 Opinions expressed by the authors of studies do not necessarily reflect
More informationService Science: A Key Driver of 21st Century Prosperity
Service Science: A Key Driver of 21st Century Prosperity Dr. Bill Hefley Carnegie Mellon University The Information Technology and Innovation Foundation Washington, DC April 9, 2008 Topics Why a focus
More informationGlobalizing IPR Protection: How Important Might RTAs Be?
Globalizing IPR Protection: How Important Might RTAs Be? Keith Maskus, University of Colorado Boulder (keith.maskus@colorado.edu) NAS Innovation Policy Forum National and International IP Policies and
More informationUS Productivity After the Dot Com Bust
McKinsey Global Institute US Productivity After the Dot Com Bust Diana Farrell Martin Baily Jaana Remes December 2005 McKinsey Global Institute The McKinsey Global Institute (MGI) was established in 1990
More informationSoftware Production in Kyrgyzstan: Potential Source of Economic Growth
400 INTERNATIONAL CONFERENCE ON EURASIAN ECONOMIES 2011 Software Production in Kyrgyzstan: Potential Source of Economic Growth Rahat Sabyrbekov (American University of Central Asia, Kyrgyzstan) Abstract
More informationIndigenous Innovation and Economic Development
Indigenous Innovation and Economic Development William Lazonick University of Massachusetts Lowell and The Academic-Industry Research Network Preparatory Process for the Third International Conference
More informationVDMA China Management Meeting. Construction Equipment and Building Material Machinery. Tianjin, 21 May VDMA Sebastian Popp
VDMA China Management Meeting Construction Equipment and Building Material Machinery Tianjin, 21 May 2015 VDMA Sebastian Popp Agenda Welcome and introduction Economic situation of the industry» Sebastian
More informationTechnologists and economists both think about the future sometimes, but they each have blind spots.
The Economics of Brain Simulations By Robin Hanson, April 20, 2006. Introduction Technologists and economists both think about the future sometimes, but they each have blind spots. Technologists think
More informationEconomics II (macroeconomics)
Course: Economics II (macroeconomics) Chapter 7 7.2 Long Run Economic Growth, Part II Author: Ing. Vendula Hynková, Ph.D. Introduction The aim of the lecture is to analyze the nature of the endogenous
More informationChina s Government Choice against Technical Trade Barriers. Zhang Rui1, a
4th International Education, Economics, Social Science, Arts, Sports and Management Engineering Conference (IEESASM 2016) China s Government Choice against Technical Trade Barriers Zhang Rui1, a 1 Jilin
More informationThis is Appendix A: Graphs in Economics, appendix 1 from the book Economics Principles (index.html) (v. 1.0).
This is Appendix A: Graphs in Economics, appendix 1 from the book Economics Principles (index.html) (v. 1.0). This book is licensed under a Creative Commons by-nc-sa 3.0 (http://creativecommons.org/licenses/by-nc-sa/
More informationInnovation policies to promote more inclusive growth: comments
Innovation policies to promote more inclusive growth: comments OECD-WB Conference on Challenges and policies for promoting inclusive growth 24-25 March 2011, Paris Sarquis J. B. Sarquis OECD Liaison Office,
More information