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WHAT DRIVES IDEAS PRODUCTION ACROSS THE WORLD?

Published online by Cambridge University Press:  17 July 2013

James B. Ang  and
Jakob B. Madsen
James B. Ang*
Affiliation:
Monash University
Jakob B. Madsen
Affiliation:
Monash University
*
Address correspondence to: James B. Ang, Department of Economics, Monash University, 900 Dandenong Road, Caulfield East, Vic 3145, Australia; e-mail: James.Ang@monash.edu.
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Abstract

The ideas production function is at the heart of endogenous growth theory. Using data for Europe, its offshoots, and the Asian Tiger economies over the period from 1870 to 2010, this paper provides direct estimates of an ideas production function that explicitly distinguishes between the first- and second-generation endogenous growth models while allowing for human capital and international knowledge spillovers through various channels. The estimates show strong intertemporal and cross-country knowledge spillovers, provide robust support for Schumpeterian growth theory, and suggest that human capital and some channels of international knowledge spillover are influential for ideas production.

Keywords

Ideas ProductionSchumpeterian Growth ModelsInternational Knowledge Transmission

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Type
Articles
Information
Macroeconomic Dynamics , Volume 19 , Issue 1 , January 2015 , pp. 79 - 115
Copyright
Copyright © Cambridge University Press 2013 

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