IDEAS home Printed from https://ideas.repec.org/p/smo/raiswp/0224.html
   My bibliography  Save this paper

Extension of Endogenous Growth Theory: Artificial Intelligence as a Self-Learning Entity

Author

Listed:
  • Julia M. Puaschunder

    (The New School, New York, USA)

Abstract

The Artificial Intelligence (AI) evolution is a broad set of methods, algorithms, and technologies making software human-like intelligent that is encroaching our contemporary workplace. Thinking like humans but acting rational is the primary goal of AI innovations. The current market disruption with AI lies at the core of the IT-enhanced economic growth driven by algorithms – for instance enabled via the sharing economies and big data information gains, self-check outs, online purchases and bookings, medical services social care, law, retail, logistics and finance to name a few domains in which AI leads to productivity enhancement. While we have ample account of AI entering our everyday lives, we hardly have any information about economic growth driven by AI. Preliminary studies found a negative relation between digitalization and economic growth, indicating that we lack a proper growth theory capturing the economic value imbued in AI. We also have information that indicates AI-led growth based on ICT technologies may widen an inequality-rising skilled versus unskilled labor wage gap. This paper makes the theoretical case of AI as a self-learning entity to be integrated into endogenous growth theory, which gives credit to learning and knowledge transformation as vital economic productivity ingredients. Future research may empirically validate the claim that AI as a self-learning entity is a driver of endogenous growth. All these endeavors may prepare for research on how to enhance human welfare with AI-induced growth based on inclusive AI-human compatibility and mutual exchange between machines and human beings.

Suggested Citation

  • Julia M. Puaschunder, 2022. "Extension of Endogenous Growth Theory: Artificial Intelligence as a Self-Learning Entity," RAIS Conference Proceedings 2022-2024 0224, Research Association for Interdisciplinary Studies.
    • Handle: RePEc:smo:raiswp:0224
    as

    Download full text from publisher

    File URL: https://rais.education/wp-content/uploads/2022/11/0224.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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. Julia M. Puaschunder, 2021. "Climate Growth Theory," RAIS Conference Proceedings 2021 0084, Research Association for Interdisciplinary Studies.
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
    5. Robert M. Solow, 1973. "Is the end of the world at hand?," Palgrave Macmillan Books, in: Andrew Weintraub & Eli Schwartz & J. Richard Aronson (ed.), The Economic Growth Controversy, chapter 2, pages 39-61, Palgrave Macmillan.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    7. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    8. Joseph Stiglitz, 1998. "Distinguished Lecture on Economics in Government: The Private Uses of Public Interests: Incentives and Institutions," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 3-22, Spring.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julia M. Puaschunder, 2021. "Climate Growth Theory," RAIS Conference Proceedings 2021 0084, Research Association for Interdisciplinary Studies.
    2. Peter Howitt, 2007. "Innovation, Competition and Growth: A Schumpeterian Perspective on Canada’s Economy," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 246, February.
    3. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342.
    4. Liu, Xielin & Ji, Xiaohui & Ge, Shuang, 2024. "Does the complexity and embeddedness of knowledge recombination contribute to economic development? —— Observations from prefecture cities in China," Research Policy, Elsevier, vol. 53(2).
    5. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    6. Garzarelli, Giampaolo & Limam, Yasmina Reem & Thomassen, Bjørn, 2007. "Open Source Software and Economic Growth: A Classical Division of Labor Perspective," MPRA Paper 3849, University Library of Munich, Germany.
    7. Firth, Lucy & Mellor, David, 2000. "Learning and the new growth theories: policy dilemma," Research Policy, Elsevier, vol. 29(9), pages 1157-1163, December.
    8. Kawalec Paweł, 2020. "The dynamics of theories of economic growth: An impact of Unified Growth Theory," Economics and Business Review, Sciendo, vol. 6(2), pages 19-44, June.
    9. Åsa Johansson, 2016. "Public Finance, Economic Growth and Inequality: A Survey of the Evidence," OECD Economics Department Working Papers 1346, OECD Publishing.
    10. Alejandro Diaz-Bautista, 2005. "Regional Convergence of Income and Labor Productivity in Mexico," Urban/Regional 0512016, University Library of Munich, Germany.
    11. Aparicio, Sebastian & Urbano, David & Audretsch, David, 2016. "Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 45-61.
    12. Tiwari, Aviral & Mutascu, Mihai, 2010. "Economic growth and and FDI in ASIA: A panel data approach," MPRA Paper 28172, University Library of Munich, Germany.
    13. Arnab Bhattacharjee & Eduardo Castro & Chris Jensen-Butler, 2009. "Regional variation in productivity: a study of the Danish economy," Journal of Productivity Analysis, Springer, vol. 31(3), pages 195-212, June.
    14. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    15. Frank Gyimah Sackey & Emmanuel Orkoh & Mohammed Musah, 2024. "Investigating the impact of institutional quality under the petroleum price deregulation policy regime on the economic growth of Ghana," SN Business & Economics, Springer, vol. 4(11), pages 1-21, November.
    16. Alogoskoufis, G.S. & van der Ploeg, F., 1991. "Money and growth revisited," Discussion Paper 1991-9, Tilburg University, Center for Economic Research.
    17. Delano S Villanueva & Roberto S Mariano & Diwa C Guinigundo & Abbas Mirakhor, 2023. "A Modified Neoclassical Growth Model with Endogenous Labor Participation," World Scientific Book Chapters, in: Economic Adjustment and Growth Theory and Practice, chapter 3, pages 44-64, World Scientific Publishing Co. Pte. Ltd..
    18. Achuo, Elvis & Nchofoung, Tii & Asongu, Simplice & Dinga, Gildas, 2021. "Unravelling the Mysteries of Underdevelopment in Africa," MPRA Paper 111556, University Library of Munich, Germany.
    19. Bernard Fingleton & Michelle Catherine Baddeley, 2011. "Globalisation And Wage Differentials: A Spatial Analysis," Manchester School, University of Manchester, vol. 79(5), pages 1018-1034, September.
    20. Durlauf, Steven N. & Quah, Danny T., 1999. "The new empirics of economic growth," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 4, pages 235-308, Elsevier.
    21. Sinesipho Siswana & Andrew Phiri, 2021. "Is Export Diversification or Export Specialization Responsible for Economic Growth in BRICS Countries?," The International Trade Journal, Taylor & Francis Journals, vol. 35(3), pages 243-261, May.

    More about this item

    Keywords

    Algorithms; Artificial Intelligence (AI); Digitalization; Digitalization disruption; Digital inequality; Economic growth; Endogenous growth;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:smo:raiswp:0224. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Eduard David (email available below). General contact details of provider: http://rais.education/ .

    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.