New Technology, Human Capital, Total Factor Productivity and Growth Process for Developing
Cuong Le van () and
No 26, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam
Solowian view on miracle growth rate in NIEs as a result of productivity growth whereas many others (e.g. Krugman ) convince that broad capital accumulation is only true engine underlying NIEs growth. Krugman's view is correct in the short and mid terms, however in the long term, TFP is the main engine of growth. We show that the optimal strategy for a developing country consists of accumulating physical capital first and there is no research activity. When the country reaches a certain level of development, which is endogenously determined in the model, the technological progress may be generated. Three critical factors: the amount of available human capital; the relative price of technological capital; and the initial income of the economy.
Keywords: Optimal growth model; New technology capital; Human Capital; Developing country (search for similar items in EconPapers)
Pages: 28 pages
New Economics Papers: this item is included in nep-dev, nep-hrm and nep-knm
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:dpc:wpaper:2608
Access Statistics for this paper
More papers in Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam Contact information at EDIRC.
Bibliographic data for series maintained by Doan Quang Hung ().