Economic growth at the expense of technology
In this article the authors aim to emphasize the effect that improving technology has in ensuring the conditions of economic growth. It is known that in Clark-Douglas’ production function we encounter the three factors, namely capital, labor and resources. Of course, economic growth can be achieved...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2022-09-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1618.pdf
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| Summary: | In this article the authors aim to emphasize the effect that improving technology has in
ensuring the conditions of economic growth. It is known that in Clark-Douglas’ production function
we encounter the three factors, namely capital, labor and resources. Of course, economic growth
can be achieved by improving labor productivity, increasing the efficiency of the use of capital and
using resource efficiency. However, among all countries that have approximately equal conditions,
growth is somewhat differentiated. This is primarily due to the quality of the technology used. In the
current conditions, we can no longer talk about the industrial revolution but about the development
of industry on a modern basis, as a result of research, innovation and inventions. The version
launched by the Solow model expresses views on the role that technology plays in the economic
growth of an area of activity, of a country or, if we want to think about the European Union, of this
economic community as a whole. Addressing these issues one by one, it follows that indeed the
technology, explained in theoretical and even concrete terms, has a particular effect on economic
growth. The authors used an appropriate technology, namely the interpretation of the data and
indicators that the National Institute of Statistics, Eurostat or the European Union provide. The
analysis is also a logical one in the sense that, by the way in which this data is expressed, it is
ensured that the possibility of using technology in increasing economic growth is ensured. |
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| ISSN: | 1841-8678 1844-0029 |