Capital-Specific Technological Change and Human Capital Accumulation in a Model of Export-Led Growth

Abstract

This paper contributes to the literature on economic growth by seeking to join several lines of research on structural factors in a more fully specified framework, on the one hand, and by making this more inclusive supply side to interact with demand factors in a model of export-led growth, on the other hand. Balance-of-payments constraints influence the adoption of investment-specific technological change which requires the import of capital goods, while the sectoral allocation of physical and human capital is likewise revealed to be crucial for growth, both results having important policy implications.

Keywords

• embodied technological change
• sectoral allocation of investment
• human capital accumulation
• export-led growth