Topic > Modern economic growth - 1170

The theoretical model of modern economic growth shows that long-term economic growth and the increase in the level of per capita income depend on technological progress. This is because without technological progress and as capital per capita increases, marginal returns to capital would decline and per capita output growth would eventually stagnate (Solow, 1956; Swan, 1956). Studies have shown that “experience, skills and knowledge are playing an increasingly important role in long-term economic growth” (World Bank, 1999). Despite the effect of technological progress on economic growth and although there are different opinions on the role of economic growth, I fear that no one would deny the important role of technical progress in economic development. In this sense, for a country to achieve long-term economic growth, we must continue to promote technological progress. However, the theory of economic growth is analyzed generally, and usually under the assumption that in a closed economy technological progress in a country has not normally occurred in various departments at the same time, and now the economy is often increasingly a open economy. In this way, technological progress has a different economic impact on a country can be very different. Furthermore, we assume that technological progress is Hicksian-neutral, with respect to an industry itself, but that technological progress also reflects the creation of new industries and development. New industries, and technology-intensive industries that are generally older than high-tech ones, use less labor. Even in old industries, the general trend of technological progress is to save labor. However, despite long-term economic growth, technological progress is very important, and even if ... middle of paper ... .technological progress (the actual cost of falling or rising output prices) has caused. (Note: Of course, if technological progress is the price of the product after the fall, the FG Theorem is not established, so it does not necessarily affect the income distribution, like SS as shown in the Theorem. However, a small country in the open cases , product prices given by the international market, so the assumption that raw material prices remain unchanged or valid, the FG theorems are generally valid.) Obviously, if technical progress cannot be changed after factor prices, the production of the two departments , the capital/labor ratio would not change, there would be an imbalance between supply and demand factors. If this imbalance cannot be corrected by the factor market, some items will be in short supply, while others will be unemployed or inactive...