Education, technical progress, and economic growth: the case of Taiwan

This paper investigates the effect of education and the role of technical progress on economic growth in Taiwan over the 1965-2000 period. A structural earnings function and indicator. for average schooling years are applied to a measure of education, and a transcendental production function is used in the model. Findings reveal that education has a positive and significant effect on growth, but the role of technical progress does not appear to be extraordinarily important. According to the complementarity test, no markedly significant relationships exist between capital and education, or between education and technical progress. (C) 2002 Elsevier Science Ltd. All rights reserved.