Advanced Ma croeconomic s Kuliah : Kesebelas Topik : otal Factor Productivity, Human Capital & Technology References : David Miles : 5 Sub ± topics : 1. The Role of Total Factor Produ ctivi ty 2. Human Capi tal 3. Tot al Factor Productivity 4. The Importance of Technological Progr ess
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Solow growth model offers an exogenous growth theory , provides noexplanation for what drives technological progress.
Endogenous growth theories are of two types : (1) continued growthby avoiding a notion of steady stage, and (2) focuses on endogenousexplanation of how total factor productivity changes over time
Growth without end ( avoiding a notion of steady stage ) :
change in capital stock = investment ± depreciation
= s Y - d K
d = depreciation as a proportion of the capital stock.
A constant MPK implies that the doubling of machine doubles output, or
% growth rate in capital stock = sY/K ±dK/K = s A ± d
so that increase in the capital stock depends positively on theinvestment rate.
If the government can change the investment rate , it leads not just to a one time increase in the levels of capital and output, butto permanent increase in the growth rate of capital & output.
Marginal MarginalProduct Productof Human A B C of MPK(Ho) MPK(H1) MPK (H2)
Capital Physical
Capital
Cost Cost
Increase in human capital generate more investment in physical capital & vice versa. As the productivity of human capital rises from A to B the stock of human capital increases from Ho to H1 & this rises the productivity of physicalschedule from MPK (Ho) to MPJK (H1). The resulting increase of physicalcapital from Ko to K1 further increase the productivity of human capital
Interaction between physical and human capital can postpone
diminishing MPK and even lead to an endogenous growthmodel with constant MPK. Because of the estimate of their spillovers, government policy can be used to improve theeconomy.
Africa scores poorly on many of the determinants of steady state :a. low investmentb. low educational achievementsc. low of social infrastructured. Strong protectionist policies
W
hy low investment ?a. large cultural groups ethno-linguistic diversity(ELD)b. ELD poor government policyc. ELD civil wars damage the economy fractionalized economy.d. Geographical factors issues of climate disease the geography
can not be altered.e. The influence of colonialism
1898: Finnish Rubber Works foundedEduard Polón founds Finnish Rubber Works, which will later becomeNokia's rubber business.
1937: Verner Weckman, industry heavyweightFormer Olympic wrestler Verner Weckman becomes President of FinnishCable Works.
1912: Finnish Cable Works foundedArvid Wickström starts Finnish Cable Works, the foundation of Nokia'scable and electronics businesses
1960: First electronics departmentCable Works establishes its first electronics department, selling andoperating computers.
1962: First in-house electrical deviceThe Cable Works electronics department produces its first in-houseelectrical device - a pulse analyzer for nuclear power plants.1967: The mergerNokia Ab, Finnish Rubber Works and Finnish Cable works formallymerge to create Nokia Corporation
1981: The mobile era beginsNordic Mobile Telephone (NMT), the first international mobile phonenetwork, is built.
1979: Mobira Oy, early phone makerRadio telephone company Mobira Oy begins life as a joint venturebetween Nokia and leading Finnish television maker Salora.
1982: Nokia makes its first digital telephone switchThe Nokia DX200, the company¶s first digital telephone switch, goesinto operation.
1984: Mobira Talkman launchedNokia launches the Mobira Talkman portable phone.
1987: Mobira Cityman ± birth of a classicNokia launches the Mobira Cityman, the first handheld NMT phone.1991: GSM ± a new mobile standard opens upNokia equipment is used to make the world¶s first GSM call.
1992: Jorma Ollila becomes President and CEOJorma Ollila becomes President and CEO of Nokia, focusing thecompany on telecommunications
1992: Nokia¶s first GSM handsetNokia launches its first GSM handset, the Nokia 1011.
Nokia launches the 2100, the first phone to feature the Nokia Tune.1994: World¶s first satellite callThe world¶s first satellite call is made, using a Nokia GSM handset.
1997: Snake ± a classic mobile gameThe Nokia 6110 is the first phone to feature Nokia¶s Snake game.
1998: Nokia leads the worldNokia becomes the world leader in mobile phones. 1
1999: The Internet goes mobile
Nokia launches the world's first WAP handset, the Nokia 7110.
2002: First 3G phone
Nokia launches its first 3G phone, the Nokia 6650.2003: Nokia launches the N-Gage
Mobile gaming goes multiplayer with the N-Gage
2005: The Nokia Nseries is born
Nokia introduces the next generation of multimedia devices, the NokiaNseries.
2005: The billionth Nokia phone is sold
Nokia sells its billionth phone ± a Nokia 1100 ± in Nigeria. Global mobile phone
THE FOUR S TAGE S OF DEVELOPM ENT Porter mengemukakan 4 tahapan pembangunan:
1. Factor driven stage :* Keunggulan bersaing diperoleh dari basic factors of production:
memanfaatkan ketersediaan SDA dan upah buruh yang murah.* Banyak negara tetap berada pada stage ini, dan sangat rawan
thd naik turun perekonomian dunia ( business cycles).* Banyak negara tetap miskin dengan konsep ini, ttp negara-2
Arab/Teluk makmur dng sumberdaya minyak.
2. Investment driven :* Kesiapan berinvestasi dalam peralatan modern dan efisien
dengan memanfaatkan teknologi terbaik yang tersedia di pasarinternasional.
* Upgrading faktor-2 produksi dari basic menjadi modern,pembangunan infrastruktur modern.* Pada stage ini, kesempatan kerja di sektor industri meningkat.* Korea Selatan : competitiveness in large scale industries;* Taiwan : competitiveness in small scale industries
3. Innovation driven :* perusahaan2 secara aktif menciptakan teknologi baru, produk
baru, dan pasar baru.* keunggulan bersaing tdk lagi ditentukan oleh factor cost, tetapi
dari produktivitas yang tinggi yang bersumber dari high skill levels dan advanced technology.
* Perusahaan berkembang menjadi multinationals, bersaingsecara global dengan strategi yang handal, dengan organisasi
pemasaran internasional, service network, dan brand reputation.
4. Wealth- driven stage :
* Negara telah mencapai tingkat kemakmuran tinggi yang
membawa dampak berkurangnya gairah untuk sukses.* P rioritas : pemanfaatan kekayaan yang telah terkumpul;* Prilaku bisnis bergeser dari risk taking leadership ke risk ±