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Phases Of Economic Development In An Endogenous Growth Model With Innovation And Education

Author

Listed:
  • Ibtissem Aribi

    (Department of Economics, Faculty of Economics and Management, University of Sfax, Sfax, Tunisia)

  • Lobna Ben Hassen

    (Department of Economics, Faculty of Economics and Management, University of Sfax, Sfax, Tunisia)

Abstract

This paper analyzes the transitional dynamics of an endogenous growth model with physical capital, human capital and R&D in which both human capital and innovation drives long run growth. The model suggests that the developing economy follows different stages of development. The first phase is characterized by physical capital accumulation. At the second stage, human capital accumulation represents the main engine of long run growth. The third phase is identified by an increasing variety of intermediate good originating from innovation. However, innovation is not assured for poor economies. In this case, permanent support for innovation can lead a sustainable exit from poverty trap.

Suggested Citation

  • Ibtissem Aribi & Lobna Ben Hassen, 2021. "Phases Of Economic Development In An Endogenous Growth Model With Innovation And Education," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 6(2), pages 78-87, September.
    • Handle: RePEc:ora:jrojbe:v:6:y:2021:i:2:p:78-87
    DOI: http://doi.org/10.47535/1991ojbe131
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    References listed on IDEAS

    as
    1. Gómez Manuel A., 2011. "Stages of Economic Development in an Innovation-Education Growth Model," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 15(4), pages 1-25, September.
    2. Funke, Michael & Strulik, Holger, 2000. "On endogenous growth with physical capital, human capital and product variety," European Economic Review, Elsevier, vol. 44(3), pages 491-515, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    development; innovation; human capital; transitional dynamics;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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