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The Importance of Higher Education -An Endogenous Growth Model

Pyron, Juliana (2006)
Department of Economics
Abstract
The need for higher education is becoming increasingly important in the globalized world, even for developing countries. The ability of countries to create, acquire, and apply technology depends greatly on the skill of the labor force. By internalizing the feely available technology of the world African economies will potentially catch up. However, the limitations of the quality and quantity of higher education in Africa may inhibit their ability to apply the benefits from the global knowledge base to their specific challenges. Africa’s economic situation is described within an extended technology transfer model, where the accumulation of technology is a function of the stock of the highly skilled work force. The solution of the model... (More)
The need for higher education is becoming increasingly important in the globalized world, even for developing countries. The ability of countries to create, acquire, and apply technology depends greatly on the skill of the labor force. By internalizing the feely available technology of the world African economies will potentially catch up. However, the limitations of the quality and quantity of higher education in Africa may inhibit their ability to apply the benefits from the global knowledge base to their specific challenges. Africa’s economic situation is described within an extended technology transfer model, where the accumulation of technology is a function of the stock of the highly skilled work force. The solution of the model shows that the rate of growth depends positively on the size of the skilled labor force as well as the rate of growth at the technological frontier and negatively on the rate of growth of the population. Increasing relative investments in the determinants of higher education: infrastructure; basic education; the productivity of education and the financial structure increase the rate of growth when the economy is in steady state. Results from evaluating the model show that the assumptions of the model can only be verified for the African countries, indicating that there is a need to create models from the perspective of developing countries, as it improves our ability to analyze the economic variables which determine growth. Without increased efforts to increase the quality and quantity of higher education, Africa may be left on the dirt road of underdevelopment. (Less)
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author
Pyron, Juliana
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
growth, education, higher education, Africa, development, endogenous, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1644006
date added to LUP
2006-06-08
date last changed
2010-08-05 14:03:00
@misc{1644006,
  abstract     = {The need for higher education is becoming increasingly important in the globalized world, even for developing countries. The ability of countries to create, acquire, and apply technology depends greatly on the skill of the labor force. By internalizing the feely available technology of the world African economies will potentially catch up. However, the limitations of the quality and quantity of higher education in Africa may inhibit their ability to apply the benefits from the global knowledge base to their specific challenges. Africa’s economic situation is described within an extended technology transfer model, where the accumulation of technology is a function of the stock of the highly skilled work force. The solution of the model shows that the rate of growth depends positively on the size of the skilled labor force as well as the rate of growth at the technological frontier and negatively on the rate of growth of the population. Increasing relative investments in the determinants of higher education: infrastructure; basic education; the productivity of education and the financial structure increase the rate of growth when the economy is in steady state. Results from evaluating the model show that the assumptions of the model can only be verified for the African countries, indicating that there is a need to create models from the perspective of developing countries, as it improves our ability to analyze the economic variables which determine growth. Without increased efforts to increase the quality and quantity of higher education, Africa may be left on the dirt road of underdevelopment.},
  author       = {Pyron, Juliana},
  keyword      = {growth,education,higher education,Africa,development,endogenous,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Importance of Higher Education -An Endogenous Growth Model},
  year         = {2006},
}