A Microeconomic Mechanism for Economic Growth

On Socio-Economic Roles and Specialization

“…Sharing one's skills with another individual is a process that does not make the giver any poorer in the skill. 6 As established by Yang and Borland (1991) and Yang (2003), learning-by-doing is an important mechanism in the process of growth. However, in Yang's framework this process is individual-specific, i.e., economic individuals are not allowed to learn from each other.…”

“…In their seminal contribution, Yang and Borland (1991) already have shown theoretically that the Smith-Young mechanism functions as a determining factor for economic growth. Indeed, the mechanism of ever-deepening economic specialization and the accompanying development of the social division of labor lead to significant growth.…”

On the emergence of scale-free production networks

“…This implies in particular that productivity grows with the number of inputs/suppliers combined. This feature is also at the core of the infra-marginal approach to economic growth [see Yang and Borland, 1991] and of Adam Smith's original description of the effects of the division of labor. Also note that θ = 0 corresponds to the case of a Cobb-Douglas production function and θ = 1 to a linear production function, i.e.…”

Research of RaD Marginal Productivity Driving Economic Convergence

“…Jones (1995Jones ( , 1999 and Young (1998) admitted that equivalent R&D inputs didn't lead to equivalent innovative outputs when technological level advanced to some extent, the revenue of technological innovation would decrease [2][3][4] . Yang and Borland (1991), Aghion and Howitt(1998) considered that the transaction cost in innovative activities would heavily increase as the enhancement of specialization level and complex of technology [5,6] . From their researches, we will draw some conclusions that the cost of technological innovation presents the characteristic: "decreasing first, increasing later".…”