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Knowledge and development : a cross-section approach

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  • Chen, Derek H. C.
  • Dahlman, Carl J.

Abstract

This paper assesses the effects of knowledge on economic growth. By using an array of indicators, each of which represents an aspect of knowledge, as independent variables in cross-section regressions that span 92 countries for the period 1960 to 2000, they show that knowledge is a significant determinant of long-term economic growth. In particular, the authors find that the stock of human capital, the level of domestic innovation and technological adaptation, and the level of information and communications technologies (ICT) infrastructure all exert statistically significant positive effects on long-term economic growth. More specifically with regard to the growth effects of the human capital stock, they find that an increase of 20 percent in the average years of schooling of a population tends to increase the average annual economic growth by 0.15 percentage point. In terms of innovation, the authors find that a 20 percent increase in the annual number of USPTO patents granted is associated with an increase of 3.8 percentage points in annual economic growth. Lastly, when the ICT infrastructure, measured by the number of telephones per 1,000 persons, is increased by 20 percent, they find that annual economic growth tends to increase by 0.11 percentage point.

Suggested Citation

  • Chen, Derek H. C. & Dahlman, Carl J., 2004. "Knowledge and development : a cross-section approach," Policy Research Working Paper Series 3366, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3366
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    References listed on IDEAS

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    3. Arusha Cooray & Marcella Lucchetta & Antonio Paradiso, 2013. "A knowledge economy approach in empirical growth models for the Nordic countries," Economics Working Papers wp13-06, School of Economics, University of Wollongong, NSW, Australia.
    4. Marcelo de Paiva Abreu, 2005. "Which "industrial policies" are meaningful for Latin America?," Textos para discussão 493, Department of Economics PUC-Rio (Brazil).
    5. Fátima Diniz & Elias Soukiazis, 2015. "Economies to Scale and the Importance of Human Capital in the Moulds Industry in Portugal: A Micro Panel Data Approach," GEMF Working Papers 2015-11, GEMF, Faculty of Economics, University of Coimbra.
    6. Maloney, William F. & Perry, Guillermo, 2005. "Towards an efficient innovation policy in Latin America," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    7. Chen, Derek H. C. & Gawande, Kishore, 2007. "Underlying dimensions of knowledge assessment : factor analysis of the knowledge assessment methodology data," Policy Research Working Paper Series 4216, The World Bank.
    8. Danilo Piaggesi & Joel Mokyr & Graham R. Mitchell & Arlindo Villaschi Filho & T. Scott Murray & Allen Hammond & Rob Katz & John Paul & Julia Tran & Antonio Cordella & Shauneen Furlong & Peter Raymond , 2005. "The Knowledge Economy in Development: Perspectives for Effective Partnerships," IDB Publications (Books), Inter-American Development Bank, number 54338 edited by Robert Vitro, February.
    9. Hai-Dang Nguyen & Thanh Ngo & Tu DQ Le & Huong Ho & Hai T.H. Nguyen, 2019. "The Role of Knowledge in Sustainable Agriculture: Evidence from Rice Farms’ Technical Efficiency in Hanoi, Vietnam," Sustainability, MDPI, vol. 11(9), pages 1-10, April.
    10. Casadio, Paolo & Paradiso, Antonio & Rao, B. Bhaskara, 2011. "Estimates of the steady state growth rates for the Scandinavian countries: a knowledge economy approach," MPRA Paper 31606, University Library of Munich, Germany.
    11. Hiau Looi Kee & Chen, Derek H. C., 2005. "A model on knowledge and endogenous growth," Policy Research Working Paper Series 3539, The World Bank.
    12. Dominguez Lacasa, Iciar & Jindra, Björn & Radosevic, Slavo & Shubbak, Mahmood, 2019. "Paths of technology upgrading in the BRICS economies," Research Policy, Elsevier, vol. 48(1), pages 262-280.
    13. Hajamini, Mehdi, 2015. "The non-linear effect of population growth and linear effect of age structure on per capita income: A threshold dynamic panel structural model," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 43-58.
    14. Jan Fagerberg & Martin Srholec, 2005. "Catching up: What are the Critical Factors for success?," Working Papers on Innovation Studies 20050401, Centre for Technology, Innovation and Culture, University of Oslo.
    15. Piaggesi, Danilo & Mokyr, Joel & Mitchell, Graham R. & Villaschi Filho, Arlindo & Murray, T. Scott & Hammond, Allen & Katz, Rob & Paul, John & Tran, Julia & Cordella, Antonio & Furlong, Shauneen & Ray, 2005. "The Knowledge Economy in Development: Perspectives for Effective Partnerships," IDB Publications (Books), Inter-American Development Bank, number 319, November.
    16. Radosevic, Slavo & Yoruk, Esin, 2018. "Technology upgrading of middle income economies: A new approach and results," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 56-75.
    17. Itzhak Goldberg & John Gabriel Goddard & Smita Kuriakose & Jean-Louis Racine, 2011. "Igniting Innovation : Rethinking the Role of Government in Emerging Europe and Central Asia," World Bank Publications - Books, The World Bank Group, number 2358.
    18. Zizi GOSCHIN & Daniela Luminita CONSTANTIN, 2007. "Romania's Development towards the Knowledge Economy: the ICT Dimension," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 0(1), pages 128-136.

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