Chen, Derek H. C.Dahlman, Carl J.2013-06-252013-06-252004-08https://hdl.handle.net/10986/14163This 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.en-USCC BY 3.0 IGOADAPTATIONAGEDAGGREGATE OUTPUTAGGREGATE PRODUCTION FUNCTIONAGRICULTUREBASIC EDUCATIONBUDGET DEFICITSCAPITAL ACCUMULATIONCAPITAL INFLOWSCAPITAL INVESTMENTCAPITAL STOCKCOMPARATIVE ADVANTAGECOMPETITIVENESSCONSTANT RETURNSCONSTANT RETURNS TO SCALECONSUMERSCONTRIBUTION OF KNOWLEDGECOUNTRY SPECIFICDATA SETSDEPENDENT VARIABLEDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT PROCESSESDIMINISHING RETURNSECONOMIC AGENTSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC RESEARCHECONOMIC THEORYECONOMICSEDUCATION LEVELEDUCATION SYSTEMSEDUCATIONAL ATTAINMENTELASTICITYEMPIRICAL EVIDENCEESTIMATED COEFFICIENTEXCHANGE RATEFACTOR ACCUMULATIONFACTORS OF PRODUCTIONFOREIGN DIRECT INVESTMENTFOSTER COMPETITIONGLOBAL ECONOMYGLOBAL SUPPLYGOVERNMENT EXPENDITURESGROSS INVESTMENTGROWTH RATEGROWTH RATESGROWTH THEORYHOLISTIC APPROACHHUMAN CAPITALIMPORTSINCREASES IN OUTPUTINCREASING RETURNSINDEPENDENT VARIABLESINDUSTRIAL ECONOMIESINDUSTRIALIZED COUNTRIESINFLATIONINTERNATIONAL COMPARISONSINTERNATIONAL TRADEKNOWLEDGE ECONOMYLABOR FORCELABOR MARKETLABOR PRODUCTIVITYLEVEL OF OUTPUTLEVEL OF TECHNOLOGYLONG-RUN GROWTHLOW-INCOME COUNTRIESMEDIAMONETARY ECONOMICSMOTIVATIONOUTPUT PER CAPITAPARENTSPATENTSPER CAPITA INCOMEPOLICY RESEARCHPOLITICAL ECONOMYPOSITIVE EFFECTSPRIMARY EDUCATIONPRODUCTION FUNCTIONPRODUCTION PROCESSESPROPERTY RIGHTSPUBLIC POLICYRADIORATE OF RETURNREAL GDPRESEARCH CENTERSSCHOOLSSERVICE INDUSTRIESSIGNIFICANT IMPACTSUSTAINABLE DEVELOPMENTTECHNICAL KNOWLEDGETECHNICAL PROGRESSTECHNOLOGICAL INNOVATIONTERTIARY EDUCATIONTFPTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRANSACTION COSTSTRANSACTIONS COSTS KNOWLEDGEECONOMIC GROWTHINFORMATIONCOMMUNICATIONHUMAN CAPITALPATENTSEDUCATION & ECONOMIC DEVELOPMENTMACROECONOMIC GROWTHWorld Bank10.1596/1813-9450-3366