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Industrialization versus Education: Optimal Investment Choices and Growth in a Developing Economy

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  • Robertson, Peter E

Abstract

Recent growth theory has focused on the role of human capital as a source of welfare gains in developing economies, rather than traditional sources such as improving resource allocation and physical capital accumulation. This paper examines traditional developing-country labor market problems in a Uzawa-Lucas endogenous growth model. Numerical solutions show that policies which promote human capital accumulation can have significant short-term costs, and lower overall welfare improvements, than policies that give similar productivity improvements in the physical-capital or final-goods sector. Copyright 2000 by Blackwell Publishing Ltd

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 4 (2000)
Issue (Month): 2 (June)
Pages: 175-83

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Handle: RePEc:bla:rdevec:v:4:y:2000:i:2:p:175-83

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Cited by:
  1. Jaime Alonso-Carrera & Xavier Raurich, 2006. "Growth, Sectoral Composition, and the Wealth of Nations," DEGIT Conference Papers c011_019, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Gross, Dominique M, 2002. "Financial intermediation : a contributing factor to economic growth and employment," ILO Working Papers 351412, International Labour Organization.

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