Abstract
This paper is an extension of the multi-sectors endogenous growth model including capital based on the model of Aghion and Howitt (1999). It sets the institution, endogenous human capital and technological innovation into a unified analysis framework, and tests the effects of the institution, capital accumulation and technological innovation on long-run economic growth. The results show that long-run economic growth not only depends on the institutional quality and the technical innovation, but also depends on the capital accumulation and household’s preferences. The long-run stable equilibrium of positive growth rate only occur when the institutional quality reaches a certain level, and the improvement of the institutional quality will improve the long-run economic growth rate when the equilibrium existing. In addition, government tax and subsidy policy can also affect the long-run economic growth. This paper aims to provide theoretical support and policy suggestions for the revival of China’s reform.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
