13 a result the model highlights the savings or investment ra o as important determinant of short-run economic growth technological progress, though important in the long-run, is regarded as exogenous to the economic system and therefore it is not adequately explored by this model turning to the issue of convergence. 133 key determinants of information and communications technology to promote knowledge-based economy in east asia debnath sajit chandra abstract in the last couple of decades, many countries have shown high economic performance by knowledge creation and diffusion to the various sectors of the economy,. Determinant of economic growth (eg levine and renelt, 1992 benhabib and spiegel 1994 topel, 1999 krueger and lindahl, 2001 pritchett, 2001) innovation and r&d activities can play a major role in economic progress increasing productivity and growth this is due to increasing use of technology that enables. There are four major determinants of economic growth: human resources, natural resources, capital formation and technology, but the importance that researchers had given each determinant was always different renowned economists provided, over time, the most basic ingredients which appear in modern theories of. Economic growth furthermore, the ability to adopt technological changes in order to increase efficiency is also important since many developing countries have a large agricultural prevailing technology and the exogenous rates of saving, population can be further broken down into various determinants of economic. The economic performance of countries like botswana, namibia, and south africa depends largely on technology, technological change, and the basic knowledge that forms the foundation for both for instance, measured as a homogenous “manna from heaven”, technology is the strongest determinant of.
Robert st juliana, indiana university south bend, usa abstract this paper explores determinants of economic growth using variables from traditional solow quality of labor force, technological progress and country openness in the estimation and use of data from american countries covering the period 1996- 2005. Their model, the potential for technological catch-up will depend on the distance from the technology frontier and on the level of human capital tfp growth is higher when the economy is far from the technology frontier because the country could engage in imitation activities however, technology transfer requires the. Field of the economics of information and communication technologies (ict) three analyses address the economic effects of ict investments, while one is concerned with determinants of investment in ict networks the study uses german firm-level data and regional-level data from germany and the united kingdom. We theoretically discuss the technology and economic determinants of the bitcoin exchange rate • we use the ardl model with bounds test to address co- integration of a mix of stationary and non-stationary time series • we find bitcoin exchange rate relates more with economic fundamentals and less with technology.
In developed countries, the study reveals that the key macroeconomic determinants that are associated with economic growth include physical capital, fiscal policy, human capital, trade, demographics, monetary policy and financial and technological factors keywords: economic growth macroeconomic. Even though it is important, technological change is not the only determinant of economic growth from the very beginning, economists have recognized the importance of producing more efficiently trade and specialization in the wealth of nations, adam smith used the example of a pin factory to illustrate how the division. Determinants of the direction of technological change1 by yale brozen northwestern university technological change as we usually use the phrase in economic theory means a change in a production function which embodies all previously known techniques in this sense, the introduction of. Determinants of economic growth are inter-related factors that directly influence the rate of economic growth ie increase in real gdp of an economy there are six four of these are typically grouped under supply factors which include natural resources, human resources, capital goods and technology the other two are.
Technology as a determinant of supply technology, in an economic sense, refers to the processes by which inputs are turned into outputs technology is said to increase when production gets more efficient take for example when firms can produce more output than they could before from the same. Espoo 2005 vtt working papers 25 determinants of innovation and the economic growth of innovators tracing the evolution of innovative firms over time olavi lehtoranta statistics finland & vtt technology studies. Though economic growth has improved in recent years in nigeria, there has been no evidence of significant manufacturing exports a critical input that enables capacity for export is investment in technology especially at the firm-level this study investigates investment in technology by firms in southwest nigeria and how. By yili chien, senior economist there are three main factors that drive economic growth: accumulation of capital stock increases in labor inputs, such as workers or hours worked technological advancement growth accounting measures the contribution of each of these three factors to the economy.
Its main contribution is to contrast the determinants of innovation intensity of exports and those of patent output per worker, a commonly used measure of frontier innovation while both measures have a number of common determinants, such as high quality of economic institutions, the analysis reveals important nuances. As we have learned, there are two ways to model economic growth: (1) as an outward shift in an economy's production possibilities curve, and (2) as a shift to the right in its long-run aggregate supply curve in drawing either one at a point in time, we assume that the economy's factors of production and its technology are. Progress is determined mainly by the speed with which already existing technologies are adopted, adapted, and successfully applied domestically, and done so throughout the economy, not just in the main cities this chapter explores some of the major determinants of this kind of within-country diffusion of technology. Nowadays, information and communication technologies (ict) constitute the most important factors of the so-called “knowledge economy” thus, most of the empirical studies conducted in developed countries confirm that competitiveness of nations and firms in the knowledge economy depends on their capabilities to.
Introduction studies on the determinants of economic outputs in african countries seek to capture economic, institutional and political factors despite strong evidence linking sustainable economic progress to massive and diverse science and technology inputs (kaplan 1999, chimanikire 2003), studies to date. Technological advancement and economic growth are truly related to each other the level of technology is also an important determinant of economic growth the rapid rate of growth can be achieved through high level of technology schumpeter observed that innovation or technological progress is the only determinant of. Building a global green economy will require a technology transition in both developed and developing countries technology transfer in developing and the leas.
This paper suggests a simulation model to investigate how science and technology fuel economic growth state (a non-chaotic state) b) the system always replicates the real world, independent of the initial conditions and c) the role and weight of science and technology as a determinant of the wealth of nations. Better technology into the economy, but this destroys stagnant firms this destruction is the downside of innovation new ideas, new applications, and new solutions to old problems are thus economically unsettled and untidy concepts over the past few centuries, rationalism and science have immeasurably. Technological progress is one of the key factors that determine economic growth in both the exogenous growth models and the endogenous growth models therefore, technological progress is very important to achieve a sustainable economic growth in this regard, macroeconomic environment exhibits importance for the. Affairs and carried out by statistics netherlands, aimed to shed light on the determinants of economic growth in the netherlands its main research question was to investigate what the most important determinants of economic growth are with the focus on the role of information and communication technology (ict.
As a factor of economic growth, this literature often relies on firm level data from the early 2000s and does not explicitly account for the impact of economy wide digital technology de- velopments (pc, 2004) this paper seeks to shed new light on the determinants of economic growth, with two objectives in mind.