Modern Economic Growth Essay -- Economics, Technological Progress

nonional model of modern economic fruit shows that long-term economic issue and raise the level of per capita income depends on technological mount. This is beca phthisis of without technological go up and with the annex of capital per capita, marginal returns of capital would diminish and output per capita growth would finally stagnate (Solow, 1956 Swan, 1956). Studies have shown that experience, skills and knowledge in the long-term economic growth is playing an increasingly important business office (World Bank, 1999). Despite how technological build work on economic growth, and how there are different views on the role of in the end, but I am afraid no one would deny that technical move on in the important role of economic development. In this sense, for a country to achieve long-term economic growth, we must continue to promote technological progress. However, economic growth speculation is analyzed in general, and usually under the assumption that in the closed in (p) economy, and technological progress in a country not normally have taken place in various departments at the identical time, and now the economy are often increasingly pass around economy. In this way, the technological progress in different economic impact on a country may be quite different. In addition, we go into that technological progress is Hicks neutral, is to an industry in itself, but technological progress also reflects the establishment of new industries and development. The new industries and technology-intensive industries generally older than the high, the use of less labor. Even the old industries, the general trend of technological progress is labor-saving. However, despite the long-term economic growth, technological progress is very important, and til now if we... ... technological progress (the actual cost of the actual producer prices hurtle or increase) caused. (Note Of course, if technological progress is the price of the product after the fall, FG T heorem is not established, so it does not necessarily affect the distribution of income, such as SS as shown in Theorem. However, a small country in the open cases, product prices given by the international market, so the assumption that goodness prices remain unchanged or valid, FG theorems generally be valid.) Obviously, if technical progress can not be changed after the factor prices, the production of the twain departments, the capital / labor ratio would not change, then the imbalance in supply and demand factors will occur. If this imbalance can not be adjusted by the factor market, some elements will be in short supply, while the other elements will be unemployed or idle.