1 / 18

The Role of Government and Preconditions for Knowledge Economy in Vietnam

The Role of Government and Preconditions for Knowledge Economy in Vietnam. Nguyễn Quang A anguyenquang@vnids.com ICT-Forum, Hanoi, 13-10-2009. 1969: The Age of Discontinuity. P. Romer, 1990: Endogenous Technological Change. Knowledge Economy. Rivalry, Excludability.

malcolm-tyson
Download Presentation

The Role of Government and Preconditions for Knowledge Economy in Vietnam

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Role of Government and Preconditions for Knowledge Economy in Vietnam Nguyễn Quang A anguyenquang@vnids.com ICT-Forum, Hanoi, 13-10-2009

  2. 1969: The Age of Discontinuity P. Romer, 1990: Endogenous Technological Change Knowledge Economy

  3. Rivalry, Excludability • Economic goods (rival~nonrival; excluadable~nonexcludable) • Private goods ~ public goods • Things, objects, skills ~ rival goods → market (shirt, hair-cut, ability to add,… → property rights, single price,..) • Ideas ~ nonrival → partial excludable (intellectual property rights) → R&D → nonmarket

  4. Neoclasical (Solow 1956; Swan 1956) Y = AKβL1- β Y: Total output A: technology is given K: physical capital L: Labor Modern (P. Romer 1990) Y(t) = A(t)X(t)βL(t)1- β Y: Total output A: stock of ideas (endogenous) X: stock of rival physical goods L: labor Growth Models

  5. Ideas, Institutions, Populations, Human Capital • Ideas • Institutions (organization, conventions, rules,…) • Populations • Human capital (skill to produce rival goods ~ skills to produce ideas) • Realm of market ↔ Realm of science

  6. Fact 1: Increses in the extent of the market

  7. Fact 2: Accelerating growth

  8. Fact 3: Variation in growth rates

  9. Fact 4: Large income and TFP differences

  10. Fact 5: Rising human capital

  11. Fact 6: Long-run stability of relative wages

  12. Growth models explaining these facts Y = F(A,X,L) • Y: total output • X : stock of rival physical goods • L : labor • A : set of ideas Y(t) = A(t)X(t)βL(t)1- β dA/dt = δHa.A1/ β; Ha = H.capital in research

  13. Economy

  14. Interactions

  15. 3 sectors as a tripod Economy

  16. Ideas, Institutions, population, human capital Interactions between these variables • ↑ Market (↑globalization, ↑ urbanization)← nonrivalry of ideas, populations • Institutions: Public education, university system → ↑human capital • Accelerating growth ← Positive feedback loop (population, ideas) • Institutions are ideas

  17. Vietnam • Integration: OK • Institutions: ? • Human capital: ? • Population: • Environment for creation and propagation of ideas? • Role of government?

  18. Thanks Nguyen Quang A anguyenquang@vnids.com

More Related