Industrialization versus Education: Optimal Investment Choices and Growth in a Developing Economy

Peter Robertson

Review of Development Economics, 2000, vol. 4, issue 2, 175-183

Abstract: Recent growth theory has focused on the role of human capital as a source of welfare gains in developing economies, rather than traditional sources such as improving resource allocation and physical capital accumulation. This paper examines traditional developing‐country labor market problems in a Uzawa–Lucas endogenous growth model. Numerical solutions show that policies which promote human capital accumulation can have significant short‐term costs, and lower overall welfare improvements, than policies that give similar productivity improvements in the physical‐capital or final‐goods sector.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/1467-9361.00086

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:rdevec:v:4:y:2000:i:2:p:175-183

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().