| Abstract: |
This paper builds on Chen and Dahlman (2006)’s Knowledge Economy concept by
introducing the Knowledge Economy Ecosystem model consisting of five pillars:
ICT infrastructure, innovation infrastructure, financial infrastructure,
quality of institutions, and educated and skilled workers. The subindices for
the first four pillars contribute to the Knowledge Economy Infrastructure
(KEI) Index, while the human capital pillar is represented by the
learning-adjusted years of schooling (LAYS), a measure introduced by the World
Bank in 2018. The utilization of LAYS in our model is important, because it
recognizes that mean years of schooling is a poor measure of human capital
simply because the quality of education can differ greatly across countries.
Employing a dynamic panel data framework, we empirically examine the influence
of the KEI Index and LAYS on total factor productivity (TFP) and GDP per
capita growth. Our findings affirm the substantial positive impact of both
LAYS and the KEI Index on TFP and economic growth. This empirical evidence
underscores the essential role of sustained investments in these five pillars
for fostering long-term economic growth, offering vital insights for
policymakers. Drawing on Thailand as a case study, the analysis illuminates
the nation's specific challenges within the Knowledge Economy Ecosystem
framework, especially in the realms of human capital development, innovation,
and institutional quality. The study underscores the considerable obstacles
Thailand encounters in these domains, impeding its transition toward a
knowledge-based economy. |