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Revitalizing the race between technology and education: Investigating the growth strategy for the knowledge-based economy based on a CGE analysis

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  • Yeo, Yeongjun
  • Lee, Jeong-Dong

Abstract

This study conducted quantitative policy experiments using a computable general equilibrium model to investigate how long-run economic growth can be achieved through the endogenous interactions between innovation and human capital accumulation. The analysis found that there are limits to driving productivity growth and enhancing growth potential when focusing solely on the expansion of technological innovation. However, our results suggest that promotion of the complementarity between technological innovation and human capital formation may alleviate the inequalities of wages and employment induced by skill-biased technological change, promoting balanced growth among industrial sectors with higher productivity improvement and scale effects. This study suggests that in order to spur long-run growth in knowledge-based economy, policymakers should establish educational infrastructure to support workers to move up the skill ladder and cope with rapid technological change.

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  • Yeo, Yeongjun & Lee, Jeong-Dong, 2020. "Revitalizing the race between technology and education: Investigating the growth strategy for the knowledge-based economy based on a CGE analysis," Technology in Society, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:teinso:v:62:y:2020:i:c:s0160791x19305639
    DOI: 10.1016/j.techsoc.2020.101295
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