dc.description.abstract | Paul Romer and Robert Lucas, the famous economist in endogenous growth theory, assume human capital is the primary growth engine. Aghion-Howitt and Grossman-Helpman focus on the role of R&D and innovation in growth. Barro and Fisher-Turnovsky assume the government is the important role in growth. In empirical analysis, this paper modify Sedgley’s model and join above-mention capitals (i.e. human capital, knowledge capital and public capital), private capital and institution (substituted by corruption index) simultaneously.
Because productivity is a long-term economy phenomenon, the short-term impulse can not influence it. This paper also use the Empirical Mode Decomposition, the primary method of Hilbert-Huang Transform developed by Huang, to decompose the short-term impulse from the original data. In order to avoid the endogeneity problem, I use the vector error correction model as the empirical analysis tool. With the OLS empirical result, the output elasticity of public capital is 0.026. With the VECM empirical result, we can conclude that these six variable are cointegrated and the cointegration vector present that the output elasticity of knowledge capital is 0.234, private capital is 0.446, public capital is 0.577, human capital is 0.185 and institution is 0.146. Except the output elasticity of public capital is larger than literatures, the elasticity of other variables which compared to literatures are in the reasonable range. | en_US |