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A Two-Sector Growth Model with Endogenous Human Capital and Amenities

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Author Info

  • Wei-Bin Zhang

    () (College of Asia Pacific Management, Ritsumeikan Asia Pacific University)

Abstract

This paper examines issues related to urbanization with labour migration. The main departures from the traditional approaches to dynamics of economic structures are that the paper uses an alternative approach to consumer behaviour and introduces human capital accumulation via learning by doing. The model describes dynamic interactions among agricultural and industrial production, rural and urban amenities, distribution of production factors and preferences with endogenous capital and human capital accumulation. We show that the dynamic system may have either a single or multiple equilibrium points, depending upon returns to scale in the two sectors. We also examined effects of changes in some parameters.

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Bibliographic Info

Article provided by Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu in its journal Interdisciplinary Description of Complex Systems.

Volume (Year): 6 (2008)
Issue (Month): 2 ()
Pages: 95-116

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Handle: RePEc:zna:indecs:v:6:y:2008:i:2:p:95-116

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Related research

Keywords: two-sector model; agricultural sector; industrial sector; physical capital accumulation; human capital accumulation; rural and urban amenities;

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Cited by:
  1. Wei-bin Zhang, 2011. "Elastic Labour Supply and Home Production in a Monetary Growth Model," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 9(2), pages 87-100.

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