IDEAS home Printed from https://ideas.repec.org/p/ihs/ihsrop/33.html
   My bibliography  Save this paper

Innovation, Capital Accumulation and Economic Transition

Author

Listed:
  • Keuschnigg, Christian

    (Department of Economics, Institute for Advanced Studies, Vienna - CEPR)

  • Kohler, Wilhelm

    (Department of Economics, University of Linz)

Abstract

This paper explores some links between trade, human capital investment and innovation-based growth in the context of Eastern European economies in transition. Specifically, we calibrate a two region model with trade in differentiated high-tech products and a homogeneous traditional commodity. Human capital, or the quality of the skilled labour force, as well as physical capital are accumulated. Human capital remains finite in the long-run but depends endegenously on education and is an important determinant of the innovation rate. Transition is modelled as one of the two regions starting out with initial conditions that are grossly displaced from a reference path of balanced growth. The paper then evaluates and compares the effects of a number of policy instruments, such as trade liberalization and subsidies for schooling and industrial research, for the process of transition as well as long-run growth and welfare.

Suggested Citation

  • Keuschnigg, Christian & Kohler, Wilhelm, 1996. "Innovation, Capital Accumulation and Economic Transition," East European Series 33, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihsrop:33
    as

    Download full text from publisher

    File URL: http://www.ihs.ac.at/publications/eco/east/ro-33.pdf
    File Function: First version, 1996
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gerhard Palme, 1998. "Auswirkungen der EU-Osterweiterung auf die österreichische Sachgüterproduktion. Ostöffnungseffekte beleben österreichische Industrie," WIFO Monatsberichte (monthly reports), WIFO, vol. 71(11), pages 761-769, November.
    2. Friedrich Schneider & Alexander F. Wagner & Mathias Dufour, 2003. "Satisfaction not guaranteed-Institutions and satisfaction with democracy in Western Europe," Economics working papers 2003-03, Department of Economics, Johannes Kepler University Linz, Austria.
    3. Piazolo, Daniel, 1998. "Investment behavior in dynamic computable general equilibrium models for transition economies," Kiel Working Papers 879, Kiel Institute for the World Economy (IfW Kiel).
    4. Rutherford, Thomas F. & Tarr, David G., 1998. "Trade liberalization and endogenous growth in a small open economy : a quantitative assessment," Policy Research Working Paper Series 1970, The World Bank.
    5. Friedrich Schneider & Kausik Chaudhuri & Sumana Chatterjee, 2003. "The Size and Development of the Indian Shadow Economy and a Comparison with other 18 Asian Countries: An Empirical Investigation," Economics working papers 2003-02, Department of Economics, Johannes Kepler University Linz, Austria.

    More about this item

    Keywords

    Research and Development; Human Capital Accumulation; Trade and Growth; Computable General Equilibirum Model;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ihs:ihsrop:33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Doris Szoncsitz (email available below). General contact details of provider: https://edirc.repec.org/data/deihsat.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.