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Phases of Economic Development: Do Initial Endowments Matter?

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  • Gómez Manuel A.

    (University of A Coruña)

  • Neves Sequeira Tiago

    (Universidade da Beira Interior and CEFAGE-UBI research center)

Abstract

Different industrializing experiences beginning on innovation or education could be explained not only by different structural parameters or policies but also by differences in factor endowments. In this paper, we consider an endogenous growth model with physical capital, human capital and R&D. We show that the initial endowments alone can determine the sequence of the phases of development that the economy follows; in particular, whether innovation precedes education or vice versa.

Suggested Citation

  • Gómez Manuel A. & Neves Sequeira Tiago, 2012. "Phases of Economic Development: Do Initial Endowments Matter?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-22, July.
    • Handle: RePEc:bpj:bejmac:v:12:y:2012:i:1:n:21
    DOI: 10.1515/1935-1690.2401
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    2. Sequeira, Tiago & Santos, Marcelo & Ferreira-Lopes, Alexandra, 2013. "Why Inventions Occurred in Some Countries and Not in Others?," MPRA Paper 51553, University Library of Munich, Germany.

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