Stages of Growth in Economic Development

Michal Kejak ()

Development and Comp Systems from EconWPA

Abstract: The paper analyses a two-sector model of endogenous growth with two common features of economic development: stages of sustained growth and underdevelopment traps. The model also demonstrates the transitional issues of a temporary underdevelopment trap, seemingly sustainable growth, and a slowdown in productivity growth. The temporary underdevelopment trap occurs when the economy exhibits a regime of extensive growth (i.e. slowly declining growth in physical capital with no growth in human capital) but then starts a transition to a sustained growth. The seemingly sustainable growth occurs when the economy exhibits a regime of intensive growth (i.e. both capitals are growing) but the growth of human capital ceases and the economy eventually finishes in a zero growth trap. The slowdown in productivity growth occurs when the transition from low growth stage to high growth stage is not monotonic.

Keywords: Two-Sector Growth Models; Economic Growth and Aggregate Productivity; Macroeconomic Analysis of Economic Development; Human Resources; Human Capital Formation (search for similar items in EconPapers)
JEL-codes: O41 O40 O11 O15 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2001-02-19
Note: Type of Document - Acrobat PDF; pages: 35 ; figures: Included
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http://129.3.20.41/eps/dev/papers/0012/0012014.pdf (application/pdf)

Related works:
Journal Article: Stages of growth in economic development (2003)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpdc:0012014

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