Industrial structure, appropriate technology and economic growth in less developed countries

Justin Lin () and Pengfei Zhang

No 4905, Policy Research Working Paper Series from The World Bank

Abstract: The authors develop an endogenous growth model that combines structural change with repeated product improvement. That is, the technologies in one sector of the model become not only increasingly capital-intensive, but also progressively productive over time. Application of the basic model to less developed economies shows that the (optimal) industrial structure and the (most) appropriate technologies in less developed economies are endogenously determined by their factor endowments. A firm in a less developed country that enters a capital-intensive, advanced industry in a developed country would be nonviable owing to the relative scarcity of capital in the factor endowments of less developed countries.

Keywords: Economic Theory&Research; Political Economy; Technology Industry; Economic Growth; Inequality (search for similar items in EconPapers)
Date: 2009-04-01
New Economics Papers: this item is included in nep-dev, nep-dge and nep-fdg
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:4905

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