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The Role of Human Capital and Population Growth in R&D‐based Models of Economic Growth *
Author(s) -
Strulik Holger
Publication year - 2005
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2005.00495.x
Subject(s) - economics , human capital , population growth , population , endogenous growth theory , scale effects , growth model , capital deepening , capital accumulation , capital (architecture) , physical capital , capital good , scale (ratio) , microeconomics , capital formation , economic growth , financial capital , geography , demography , public good , cartography , archaeology , sociology
Human capital accumulation is introduced in a growth model with R&D‐driven expansion in variety and quality of intermediate goods and knowledge spillovers from both research activities. Economic growth is no longer uniquely tied to population growth as previous growth models without scale effects suggest. The model predicts that economic growth depends positively on the rate of human capital accumulation and positively or negatively on population growth and is therefore supported by empirical evidence to a greater extent than previous models. In particular, long‐run growth is compatible with a stable population.