Research On The Contribution Of Technological Progress And Technical Efficiency To Economic Growth

Economic growth is one of the frontier problem in the field of economics, and also the practical problem that people are concerned. As the important factors in promoting economic growth:technological progress and technical efficiency, which are the core elements of economic growth and the sources of economic development. Since reform and opening up, China created a miracle of sustained high economic growth, which arouses academic circles'interest at home and abroad on the relationship among economic growth, technological progress, and technical efficiency. Many scholars thought that China's high-speed economic growth mainly depended on the increasement of factors such as capital, labors and energy etc. The model of economic growth was mainly extensive. South Korea have developed as a newly industrialized country in just about 30 years, which created the most successful model of economic development in developing countries.The fact of economic development in South Korea shows that:technological progress and innovation have become key factors of a country's economic development. South Korea's successful economic development experience, which is worth studying and learning to China.In view of these, this paper uses comparative analysis, normative analysis and empirical analysis methods, grasps the theme on how the technological progress and technical efficiency take contribution to economic growth. We give systemic, qualitative and quantitative research with the help of econometric model of the relationship among economic growth, technological progress, and technical efficiency on a perspective of macroeconomic sustained growth. Then, we take comprehensive explanation and measurement on how the technological progress and technical efficiency take contribution to economic growth from theoretical and empirical angles. It will provide a scientific base on many aspects, such as how the government scientifically chooses strategies of economic development, how to promote the change of economic development mode.The study is divided into seven chapters, the main research contents and main structure are as follows:The first chapter is Introduction. It will set out the background of raising the question, research purpose, research ideas and methods, technical route and innovations of the study, and describes the analytical framework and research contents of this paper. The second chapter is theoretical learning and research summary. Firstly, we summarize the theories of economic growth, technological progress and technical efficiency; secondly, we review the status of research at home and abroad. The third chapter is theoretical analysis about the contribution of technological progress, technical efficiency to economic growth. In this chapter we analyze the relationship among technological progress, technical efficiency and economic growth; at the same time we have constructed a corresponding model, which will be the base of empirical analysis. The fourth chapter is the empirical analysis about the contribution of technological progress and technical efficiency to China's economic growth. We do empirical research by constructing an econometric model and using statistical software on the sample data of China. The fifth chapter is the empirical analysis about the contribution of technological progress and technical efficiency to South Korea economic growth. We give empirical research by constructing an econometric model and using statistical software on the sample data of South Korea. The sixth chapter is the comparative analysis about the contribution of technological progress, technical efficiency to the economic growth between China and South Korea. According to the empirical results of previous two chapters, we do the comparative analysis about the contribution of technological progress, technical efficiency to economic growth between China and South Korea according to China and South Korea's national conditions. The seventh chapter is about the conclusions and prospects of this research. We will summarize the overall conclusions of the study and give prospects on the following research.Around the theme about contribution of technological progress, technical efficiency to economic growth, on the technology-based perspective, this paper follows the value of "comprehensive, coordinated and sustainable development", builds the framework of sustainable endogenous growth theory, analyzes inner rules and logic unity of sustained economic growth. This paper takes China and South Korea as an example, we give deeply theoretical and empirical analysis from the level of contribution of technological progress by using DEA and other methods. In addition, we give comprehensive interpretation about the contribution of technology to economic growth, and do comparative analysis about the contribution of technological progress, technical efficiency to economic growth between China and South Korea. To combine the empirical results, we analyze China and South Korea's technological progress and technical efficiency's contribution to economic growth, and explore inherent technical factors. In the end, we put forward technological paths of economic sustainable growth in China and Korea. Through comprehensive investigation and analysis, we have drawn the following conclusions:Firstly, from 1978 to 2006, the TFP of China and South Korea showed an upward trend, but South Korea is higher than China on the contribution of TFP to economic growth. It is consistent with the facts of two countries'economic development stages. The fact is that, South Korea had rapid economic development and completed the process of industrialization at this stage; however, China was in the exploratory phase of reform and opening up, or in the stage of gradual reform and "exploring method".Secondly, through decomposition of the factors, it seems that South Korea was higher than China on the contribution of technological progress to economic growth from 1978 to 2006. But, China had greater volatility than South Korea in technological progress aspect. In the same period, the average of South Korea's technical efficiency was slightly lower than China, which shows that China improved technical efficiency in the phase, while South Korea's technical efficiency declined slightly compared with the previous in this phase. The main reasons lie in the different role of technological progress in economic development and the different base of technology of two countries. That is to say, South Korea's technological progress encounters bottle-neck's problem and needs to overcome after certain stage.Thirdly, in all the explanatory variables, import dependency has the highest influence coefficient in impact of China's TFP, but the value of influence coefficient declines. This fact not only reveals imitation-based technological progress paths of China's "imported open-end" technology introduction in certain extent, but also we can see from the reduction of influence coefficient that technological progress effects which due to technological path have been slow in the overall sample. In South Korea, financial development, the ratios of R&D investment sharing in GDP and the lagged TFP have obvious effects to total factor productivity. In all explanatory variables, the ratio of R&D investment sharing in GDP has the highest influence coefficient.Through comparing the two sample results, we can find that the influence coefficient of import scale's impact on total factor productivity reduced from 0.044 to 0.005 in the years of 1982-2006. In certain extent, it reflects that South Korea takes technology imitation in the initial stage of economic development, and then has re-innovation through digesting and absorbing, which make its dependence on foreign technology decrease.Fourthly, from China's sample estimated results in the years of 1997-2006, we find that import dependence, R&D ratio of investment and expenses, expenditure on science and education, have significant effects on technological progress, however the ratio of researcher and designer has negative relation. This clearly reveals the fact that technological progress does not come from technology innovation, but comes from technology imitation. From South Korea's sample estimated results in the years of 1982-2006, we find that R&D ratio of investment and expenses, the ratio of researcher and designer, expenditure on science and education, have significant effects on technological progress, however import dependence has negative relation. This exactly reveals the technological progress path of South Korea-from the introduction of digestion and absorption of re-innovation to the independent innovation.Fifthly, through comparative analysis about the contribution of technological progress, technical efficiency to economic growth between China and South Korea, combining with the realities of China, this paper suggests that China should focus on implementing the following strategies on the base of reference for South Korea successful experience in the future:adopting appropriate technology strategies; adhering to the "independent innovation";increasing R&D investment and encouraging enterprises to strengthen R&D activities; re-innovating in introduction taking localization as a goal; building an international brand and promoting high-tech enterprises'development and growth; playing full role of the government in promoting industrial technological innovation, and so on.For a country, there is a technological level which can make economy follows the path of optimal growth, and this technological level can upgrade with the development of national economy. If the technology of one country used deviate from this level, its economic growth will also deviate from the optimal path, resulting in poor performance of its economic development. Thus, in the process of economic development of a country, it should not only pay attention to technology development path, but also have to concern with the technological progress and technical efficiency arising from economic development, accordingly making rapid and healthy development of economy. This study extends the endogenous growth theory and the research category of sustainable economic growth, which will contribute to the academic make further consideration and research focusing on this area.