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Competitiveness, openness and economic growth

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  • Patricio Mujica

Abstract

The purpose of this paper is to explore some issues and implications regarding the design of economic policies which derive from incorporating related to a society’s process of knowledge accumulation associated with an analysis of the relationship between economic growth and the level and composition of investment in knowledge. The paper develops a model which serves as an analytical frame to study the relationship between economic growth and knowledge and to examine the mechanism through which policies may alter the process of knowledge accumulation. It is concluded that the impact of the policies oriented to promote investment in human capital and technological research and development activities depends crucially on the characteristics of the knowledge generated. The policies to support education and technological research should: promote the development of the capacity to absorb new knowledge; maintain an equilibrium between specialization and flexibility; and, explicitly incorporate aspects rel

Suggested Citation

  • Patricio Mujica, 1996. "Competitiveness, openness and economic growth," Estudios de Economia, University of Chile, Department of Economics, vol. 23(2 Year 19), pages 201-221, December.
    • Handle: RePEc:udc:esteco:v:23:y:1996:i:2:p:201-221
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    References listed on IDEAS

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Grossman, Gene M & Helpman, Elhanan, 1990. "Trade, Innovation, and Growth," American Economic Review, American Economic Association, vol. 80(2), pages 86-91, May.
    3. Costas Azariadis & Allan Drazen, 1990. "Threshold Externalities in Economic Development," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(2), pages 501-526.
    4. Romer, Paul M., 1990. "Human capital and growth: Theory and evidence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 32(1), pages 251-286, January.
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