TY - BOOK ID - 134355818 TI - A Model on Knowledge and Endogenous Growth AU - Hiau, Looi Kee AU - Chen, Derek H. C. PY - 2005 PB - Washington, D.C., The World Bank, DB - UniCat KW - Capita Income KW - Capital KW - Capital Accumulation KW - Capital Stock KW - Conventional Wisdom KW - E-Business KW - Economic Development KW - Economic Growth KW - Economic Theory and Research KW - Emerging Markets KW - Factors Of Production KW - Growth KW - Growth Rate KW - Growth Rate of Output KW - Growth Rates KW - Inequality KW - International Economics & Trade KW - Labor KW - Labor Force KW - Level Of Technology KW - Macroeconomics and Economic Growth KW - Neoclassical Models KW - Political Economy KW - Poverty Reduction KW - Private Sector Development KW - Pro-Poor Growth KW - Production Function KW - Sector Model KW - State Equilibrium KW - Technical Progress KW - Trade and Regional Integration KW - Trade Liberalization UR - https://www.unicat.be/uniCat?func=search&query=sysid:134355818 AB - This paper presents a model of endogenous growth in which the main engine of economic development is knowledge. Using a two-sector closed economy model that comprises of a conventional goods-producing sector and a research and development sector, our model incorporates two key aspects of knowledge: technology and human capital. Steady-state equilibrium conditions show that the growth rate of per capita income hinges on the growth rate of human capital. While the growth rate of human capital has been previously shown to affect the growth of the economy in transition between steady states or balanced growth paths, this paper is the first to link the growth rate of human capital to the steady-state growth rate of productivity and output per worker. Furthermore, this result does not exhibit scale effects or policy invariance, both of which have been longstanding concerns with the predictions of endogenous growth models developed in the 1990s. ER -