NDLI: Energy exploitation, learning by doing, and economic growth of energy-oriented regions

Content Provider	IEEE Xplore Digital Library
Author	Shao Shuai Qi Zhong-ying
Copyright Year	2009
Description	Author affiliation: School of Management, Harbin Institute of Technology, China, 150001 (Shao Shuai; Qi Zhong-ying)
Abstract	In this paper, a two-sector endogenous growth model of energy-oriented regions with a constant returns-to-scale manufacturing sector characterized as learning by doing effect and a labor-intensive energy-extracting sector characterized as accepting passively technical spillover from the manufacturing sector is developed. A mechanism interpretation of “resource curse” faced frequently by energy-oriented regions is presented through market competition dynamic equilibrium and comparative static analysis of steady state solution on the relationship among energy exploitation, regional technical progress and economic growth. Our results indicate that energy exploitation is not necessary to be adverse to economic growth in energy-oriented regions, whether or not “resource curse” appears in the energy-oriented economy depends on the quantitative relationship between the elasticity of substitution between production factors and the level of returns to scale in the energy-based industry. A lower complementarity between factors relative to the level of returns to scale can weaken learning by doing effect in the manufacturing sector and depress economic growth, while there is no curse in energy-oriented regions only if energy resource and labor are highly complementary inputs. Furthermore, the proposition is verified through empirical tests of panel data from 11 province-level districts in Western China.
Starting Page	1574
Ending Page	1581
File Size	235704
Page Count	8
File Format	PDF
ISBN	9781424439706
DOI	10.1109/ICMSE.2009.5317938
Language	English
Publisher	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Publisher Date	2009-09-14
Publisher Place	Russia
Access Restriction	Subscribed
Rights Holder	Institute of Electrical and Electronics Engineers, Inc. (IEEE)
Subject Keyword	Industrial economics Industrial relations resource curse economic growth Power generation economics Pulp manufacturing Elasticity Steady-state energy-oriented region learning by doing Manufacturing industries Production energy exploitation Virtual manufacturing Dynamic equilibrium
Content Type	Text
Resource Type	Article

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