Culture and Stages of Economic Development

Angus Chu, Zonglai Kou and Xilin Wang

MPRA Paper from University Library of Munich, Germany

Abstract: How do cultural differences in preferences affect economic development? This study develops a simple growth model that features two stages of development. In the first stage, economic growth is driven by human capital accumulation. In the second stage, economic growth is driven by innovation. The economy does not necessarily experience the transition from the first stage to the second stage. If this endogenous transition does not occur, the economy converges to a steady-state level of output. The economy remains in this middle-income trap if leisure preference is too strong or parental preference for education is either too weak or too strong.

Keywords: culture; education; innovation; economic development; middle-income trap (search for similar items in EconPapers)
JEL-codes: O3 O4 (search for similar items in EconPapers)
Date: 2021-03
New Economics Papers: this item is included in nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/106900/1/MPRA_paper_106900.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/110841/1/MPRA_paper_110841.pdf revised version (application/pdf)

Related works:
Journal Article: Culture and stages of economic development (2022)
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:pra:mprapa:106900

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().