TITLE:
The Influence of Learning by Doing Effect and the Accumulation of Human Capital on Economic Growth
AUTHORS:
Chia-Yang Ning, Hsien-Yu Shun
KEYWORDS:
Learning by Doing, Human Capital, Economic Growth
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.9 No.10,
October
29,
2021
ABSTRACT:
Based on Lucas (1988) human capital model, our paper introduces Romer (1986) the concept of learning by doing and tries to establish an endogenous growth model under a closed economic system, so as to explore the impact on the long-term economic growth rate under the consideration of learning by doing effect and human capital accumulation. We found that when the consumption intertemporal elasticity of substitution is equal to 1, the growth rate of human capital will show a fixed growth; when the consumption intertemporal elasticity of substitution isn’t equal to 1, we have a higher growth rate of human capital. In terms of economic growth rate, regardless of the value of consumption intertemporal elasticity of substitution, we can get a higher economic growth rate. It shows that learning by doing and human capital has a positive effect on the economic growth rate. Even if the human capital growth rate shows a fixed growth, the learning by doing effect can also promote the long-term economic growth rate of the system.