Globalization, Population, and Regional Growth in the Knowledge-Based Economy

Description

This book clarifies how globalization, progress in the knowledge-based economy, and demographic change affect regional economic growth, using the latest analytical methods for economic growth. In the last 30 years, Asian countries have realized remarkable economic growth and are expected to become major growth centers of the world economy in the future. On the other hand, many researchers and policy makers point out that the Asian economy will face numerous challenges to sustain its growth. Specifically, globalization, realization of the knowledge-based economy, and population decline will bring about major changes in the structure of the Asian economy. This book provides the reader with the analytical framework to investigate how these structural changes affect regional economic growth. Moreover, the book covers topics such as foreign direct investment, quality of institutions, intergenerational conflict, education policies, and household fertility decision, all of which are comprehensively explained from the point of view of economic growth. Therefore, the scope of this volume is not only contemporary but also important for going beyond the usual regional economics and growth literature. This work is highly recommended to academic researchers and students who are interested in various aspects of regional economic growth. Contents About the Editors Chapter 1: The Issues of Regional Development 1.1 Globalization and Institutions 1.2 Macroeconomics of Family 1.3 Knowledge-Based Economy, Education, and Inequality Part I: Globalization and Institution Chapter 2: Growth and International Knowledge Spillovers with Firm Heterogeneity 2.1 Introduction 2.2 Setup of the Model 2.2.1 Consumer Behavior 2.2.2 Producer Behavior 2.2.3 Firm Entry 2.3 Steady-State Equilibrium of the Model 2.3.1 Grossman-Helpman Model 2.3.2 Efficiency-Linked Knowledge Spillover Model 2.3.3 Lab-Equipment Model 2.3.4 The Growth Effects of Trade and FDI Liberalization 2.4 Conclusion Appendix A.1 Derivation of the Free Entry Condition in Eq. (2.24) A.2 Derivation of the Average Productivities in Eq. (2.29) References Chapter 3: Political Economy of Patent Policy and Economic Growth 3.1 Introduction 3.2 A Baseline Model of Innovation and Intellectual Property Rights 3.2.1 Household 3.2.2 Intellectual Property Rights Policy 3.2.3 Producers 3.2.4 Research and Development Sector 3.2.5 National Income 3.2.6 Equilibrium Path 3.2.7 Benevolent Governing Party 3.3 Campaign Contributions 3.3.1 Introducing Campaign Contributions 3.3.2 Government with Campaign Contributions 3.4 Concluding Remarks Appendix A.1 Derivation of Household Utility in Eq. (3.28) References Chapter 4: Abundant Resource Endowments, Institutions and Economic Growth: A Theoretical Framework and Validation Using China´... 4.1 Introduction 4.2 Setup of the Model 4.2.1 The Resources Sector 4.2.2 The Manufacturing Sector Production of Finished Goods Intermediate Goods Production and Innovation 4.2.3 The Household Sector 4.3 Equilibrium Analysis 4.3.1 The Selection of Skilled Workers in Equilibrium 4.3.2 Dynamic Equilibrium 4.4 Data Analysis 4.4.1 Estimate Equation 4.4.2 Data Source, Variable Description and Statistics 4.4.3 Estimation Results 4.5 Concluding Remarks References Part II: Macroeconomics of Family Chapter 5: Endogenous Fertility, Childlessness, and Economic Growth 5.1 Introduction 5.2 The Model 5.3 Dynamic Behavior of the Economy 5.4 Effects of Declining Birth Rate on Utility 5.5 Child Allowance Policy 5.6 Numerical Example 5.6.1 Marginal Effect of Child Allowance Policy 5.6.2 Relation Between the Tax Rate and Utility 5.7 Concluding Remarks References Chapter 6: Economic Growth and Work-Life Balance 6.1 Introduction 6.2 Barro and Sala-i-Martin´s Labor/Leisure Choice Model 6.3 Empirical Analysis of Work-Life Balance 6.3.1 Overview of Data 6.3.2 Regression Models 6.3.3 Results and Discussion 6.4 Conclusion References Part III: Knowledge-Based Economy, Education, and Inequality Chapter 7: Uncertainty of Educational Outcome, Demographic Transition, and Income Distribution 7.1 Introduction 7.2 The Model 7.2.1 Firm 7.2.2 Households 7.3 Educational Choice and the Number of Children 7.4 Fertility Choice 7.5 Steady Equilibrium 7.6 Existence of Steady Equilibrium 7.7 Small Class-Size Policy Effects on Steady-State Equilibria 7.8 Conclusion Appendix 1: Empirical Analyses of the Graduation Probability Data Estimate of the Value of phi Regression Analysis of the Graduation Probability and phi Appendix 2: Proof of Lemma 3 Appendix 3: Proof That No Steady-State Equilibrium Exists in the Case of Children Born into H Household, Who Choose Only Schoo... References Chapter 8: Investment in Education and Intergenerational Conflicts of Interest within the Family 8.1 Introduction 8.2 Model 8.3 Analysis 8.3.1 Case of Basic Model 8.3.2 Case of Model with Difference in Income 8.3.3 Case of Model with Difference in Allocation Rule 8.4 Discussion 8.5 Conclusion References Chapter 9: Income Inequality and Intergenerational Mobility in an Endogenously Growing Economy 9.1 Introduction 9.2 The Model 9.2.1 Technology and Factor Prices 9.2.2 Technological Progress 9.2.3 Individual Education Choice 9.2.4 The Distribution of Required Education Costs among Individuals 9.2.5 The Dynamic Equation of the Model 9.3 The Analysis 9.3.1 Dynamics When εc = 0, i.e., c'(zt + 1) = 0 9.3.2 The Effects of Exogenous Technological Progress 9.3.3 Dynamics When c'(zt + 1) 0 9.3.4 The Effects of Exogenous Technological Progress 9.4 Concluding Remarks References