New technology, human capital and growth for developing countries
We consider a developing country with three sectors in economy : consumption goods, new technology and education. Productivity of the consumption goods sector depends on new technology and skilled labor used for production of the new technology. We show that there might be three stages in the process of economic growth. In the first stage the country concentrates on production of consumption goods ; in the second stage it requires the country to import both physical capital to produce consumption goods and new technology capital to produce new technology ; and finally, the last stage is one where the country needs, additionally to investment activities in the previous stage, to invest the training and education of high skilled labor.
|Date of creation:||Oct 2006|
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