Flying or Trapped?

Yunfang Hu, Takuma Kunieda, Kazuo Nishimura and Ping Wang

No 27278, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We develop a unified theory with endogenous technology choice in human/knowledge capital accumulation to establish a rich array of equilibrium development paradigms, including poverty trap, middle income trap and flying geese growth. We then generalize the baseline structure and establish conditions for different development paradigms to arise. By calibrating the general model to fit the data from several representative economies with different income and growth patterns, we identify various prolonged flying geese episodes and middle income traps. By performing growth accounting, we find that improving human capital accumulation efficacy and mitigating barriers to human capital accumulation are most rewarding for advancing the economy and avoiding the middle income trap.

JEL-codes: D2 E2 O4 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-gro and nep-mac
Note: DEV EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as Yunfang Hu & Takuma Kunieda & Kazuo Nishimura & Ping Wang, 2023. "Flying or trapped?," Economic Theory, vol 75(2), pages 341-388.

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Journal Article: Flying or trapped? (2023)
Working Paper: Flying or Trapped? (2019)
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