The most developed industrial countries have been entering the stage of a postindustrial society and production structure. At this stage, knowledge replaces capital and ideas replace manual labor. Knowledge and ideas are the key determinants of the production costs and economic growth. The cost of production not only depends on the cost of materials, labor and capital, but more critically on the amount of knowledge capital. Knowledge also reduces the cost of production by introducing new innovations and raising the quality of institutions. Hence, the comparative cost of an industrial economy is greatly dependent upon the cumulative knowledge stock; the industrial country in an open world economy tends to export more knowledge intensive goods.
In this paper, knowledge capital can be approximated operationally by total factor productivity(TFP) and labor skills. The focus of this study is on the role of knowledge capital in international trade. (The rest omitted)
Korea's trade policy
Two essays on Korea's market liberalization and economic cooperation with ASEAN
Korea Institute for Industrial Economics and Trade
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Trade
Economy < Economic Administration