Capital-Specific Technological Change and Human Capital Accumulation in a Model of Export-Led Growth
DOI:
https://doi.org/10.13133/2037-3643/10153Keywords:
embodied technological change, sectoral allocation of investment, human capital accumulation, export-led growthAbstract
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. Among the latter, the fact that the growth path of the traditional sectors is positively related to the growth rate of exports. The higher the fraction of the production of non-durable consumption goods that is exported, the stronger the impact of a change in the growth rate of exports on the growth rates of the production of non-durable consumption and capital goods.
JEL Codes: O11, O33, O41
References
ACEMOGLU D. (1998), “Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality”, The Quarterly Journal of Economics, vol. 113 n. 4, pp. 1055-1089.
ACEMOGLU D. (2002), “Technical Change, Inequality and the Labour Market”, Journal of Economic Literature, vol. 40 n. 1, pp. 7-72.
ARAUJO R. (2004), “Optimal Human Investment Allocation”, Economics Letters, vol. 85 n. 1, pp. 71-76.
ARAUJO R. and TEIXEIRA J. (2002), “Structural Change and Decisions on Investment Allocation”, Structural Change and Economic Dynamics, vol. 13 n. 2, pp. 249-258.
BAKHSHI H. and LARSEN J. (2005), “ICT-Specific Technological Progress in the United Kingdom”, Journal of Macroeconomics, vol. 27 n. 4, pp. 648-669.
BENHABIB J. and SPIEGEL M. (1994), “The Role of Human Capital in Economic Development: Evidence From Aggregate Cross-Country Data”, Journal of Monetary Economics, vol. 34 n. 2, pp. 143-173.
BOSE S. (1968), “Optimal Growth and Investment Allocation”, The Review of Economic Studies, vol. 35 n. 4, pp. 465-480.
BOUCEKKINE R., DEL RÍO F. and LICANDRO O. (2003), “Embodied Technological Change, Learning-by-doing and the Productivity Slowdown”, The Scandinavian Journal of Economics, vol. 105 n. 1, pp. 87-98.
CABALLERO R.J., ENGEL E.M. and HALTIWANGER J.C. (1995), “Plant-Level Adjustment and Aggregate Investment Dynamics”, Brookings Papers on Economic Activity, vol. 1995 n. 2, pp. 1-54.
COE D. and HELPMAN E. (1995), “International R&D Spillovers”, European Economic Review, vol. 39 n. 5, pp. 859-887.
COLECCHIA A. and SCHREYER P. (2002), “ICT Investment and Economic Growth in the 1990s: Is the United States a Unique Case? A Comparative Study of Nine OECD Countries”, Review of Economic Dynamics, vol. 5 n. 2, pp. 408-442.
CUESTAS J.C. (2009), “Purchasing Power Parity in Central and Eastern European Countries: An Analysis of Unit Roots and Nonlinearities”, Applied Economics Letters, vol. 16 n. 2, pp. 87-94.
CUMMINS J. and VIOLANTE G. (2002), “Investment-Specific Technical Change in the United States (1947–2000): Measurement and Macroeconomic Consequences”, Review of Economic Dynamics, vol. 5 n. 2, pp. 243-284.
DAVID P. (1975), Technical Choice, Innovation and Economic Growth, Cambridge: Cambridge University Press.
DOMAR E. (1957), “A Soviet Model of Growth”, in Domar E., Essays in the Theory of Economic Growth, Oxford: Oxford University Press, pp. 239-257.
DOSI G. (1984), Technical Change and Industrial Transformation, New York: St. Martin’s Press.
FELDMAN G. (1928), “On the Theory of Growth Rates of National Income”.
SPULBER N. (ed.) (1964), Foundations of Soviet Strategy for Economic Growth, Bloomington: Indiana University Press.
FISHER J. (2006), “The Dynamic Effects of Neutral and Investment-Specific Technology Shocks”, Journal of Political Economy, vol. 114 n. 3, pp. 413-451.
FREEMAN C. and SOETE L. (1987), Technical Change and Full Employment, New York: Basil Blackwell.
GOUVEA R.R. and LIMA G.T. (2010), “Structural Change, Balance-of-Payments Constraint, and Economic Growth: Evidence from the Multisectoral Thirlwall’s Law”, Journal of Post Keynesian Economics, vol. 33 n. 1, pp. 169-204.
GORDON R. (2000), “Does the ‘New Economy’ Measure Up to the Great Inventions of the Past?”, Journal of Economic Perspectives, vol. 14 n. 4, pp. 49-74.
GREENWOOD J., HERCOWITZ Z. and KRUSELL P. (1997), “Long-Run Implications of Investment-Specific Technological Change”, The American Economic Review, vol. 87 n. 3, pp. 342-362.
GREENWOOD J., HERCOWITZ Z. and KRUSELL P. (2000), “The Role of Investment-Specific Technological Change in the Business Cycle”, European Economic Review, vol. 44 n. 1, pp. 91-115.
GREENWOOD J. and KRUSELL P. (2007), “Growth Accounting with Investment-Specific Technological Progress: A Discussion of Two Approaches”, Journal of Monetary Economics, vol. 54 n. 4, pp. 1300-1310.
GREENWOOD J. and YORUKOGLU M. (1997), “1974”, Carnegie-Rochester Conference Series on Public Policy, vol. 46 n. 1, pp. 49-95.
GROSSMAN G. and HELPMAN E. (1991), Innovation and Growth in the Global Economy, Cambridge, MA: The MIT Press.
HENDRICKS L. (2000), “Equipment Investment and Growth in Developing Countries”, Journal of Development Economics, vol. 61 n. 2, pp. 335-364.
HERCOWITZ Z. (1998), “The ‘Embodiment’ Controversy: A Review Essay”, Journal of Monetary Economics, vol. 41 n. 1, pp. 217-224.
HO C.-Y. (2008), “Investment-Specific Technological Change and Labour Composition: Evidence from the U.S. Manufacturing”, Economics Letters, vol. 99 n. 3, pp. 526-529.
HUFFMAN G. (2007), “Endogenous Growth through Investment-Specific Technological Change”, Review of Economic Dynamics, vol. 10 n. 4, pp. 615-645.
HULTEN C. (1992), “Growth Accounting When Technical Change is Embodied in Capital”, The American Economic Review, vol. 82 n. 4, pp. 964-980.
JACOBS B. (2005), “Optimal Income Taxation with Endogenous Human Capital”, Journal of Public Economic Theory, vol. 7 n. 2, pp. 295-315.
JORGENSON D. (1966), “The Embodiment Hypothesis”, Journal of Political Economy, vol. 74 n. 1, pp. 1-17.
JORGENSON D. and STIROH K. (2000), “Raising the Speed Limit: U.S. Economic Growth in the Information Age”, Brookings Papers on Economic Activity, vol. 2000 n. 1, pp. 125-235.
KALDOR N. (1957), “A Model of Economic Growth”, The Economic Journal, vol. 67 n. 268, pp. 591-624.
KELLER W. (1998), “Are International R&D Spillovers Trade-Related? Analyzing spillovers Among Randomly Matched Trade Partners”, European Economic Review, vol. 42 n. 8, pp. 1469-1481.
KRUSELL P. (1998), “Investment-Specific R&D and the Decline in the Relative Price of Capital”, Journal of Economic Growth, vol. 3 n. 2, pp. 131-141.
MANKIW N., ROMER D. and WEIL D. (1992), “A Contribution to the Empirics of Economic Growth”, The Quarterly Journal of Economics, vol. 107 n. 2, pp. 407-437.
MARQUIS M. and TREHAN B. (2008), “On Using Relative Prices to Measure Capital-Specific Technological Progress”, Journal of Macroeconomics, vol. 30 n. 4, pp. 1390-1406.
MAYER J. (2001), “Technology Diffusion, Human Capital and Economic Growth in Developing Countries”, UNCTAD Discussion Papers, n. 154.
NELSON R. and PHELPS E. (1966), “Investment in Humans, Technological Diffusion, and Economic Growth”, The American Economic Review, vol. 56 n. 1/2, pp. 69-75.
NELSON R. and WINTER S. (1982), An Evolutionary Theory of Economic Change, Cambridge, MA: Harvard University Press.
OULTON N. (2007), “Investment-Specific Technological Change and Growth Accounting”, Journal of Monetary Economics, vol. 54 n. 4, pp. 1290-1299.
PASINETTI L. (1993), Structural Economic Dynamics: A Theory of the Economic Consequences of Human Learning, Cambridge: Cambridge University Press.
ROSENBERG N. (1976), Perspectives on Technology, Cambridge: Cambridge University Press.
SAKELLARIS P. and WILSON D. (2004), “Quantifying Embodied Technological Change”, Review of Economic Dynamics, vol. 7 n. 1, pp. 1-26.
SOLOW R. (1957), “Technical Change and the Aggregate Production Function”, The Review of Economics and Statistics, vol. 39 n. 3, pp. 312-320.
SOLOW R. (1960), “Investment and Technical Progress”, in Arrow K.J., Karlin S. and Suppes P. (eds.), Mathematical Methods in the Social Sciences, Stanford: Stanford University Press, pp. 89-104.
SOLOW R. (1962), “Technical Progress, Capital Formation, and Economic Growth”, The American Economic Review, vol. 52 n. 2, pp. 76-86.
STIGLITZ J. and ATKINSON A. (1969), “A New View of Technological Change”, The Economic Journal, vol. 79 n. 315, pp. 573-578.
THIRLWALL A. (1997), “Reflections on the Concept of Balance-of-Payments-Constrained Growth”, Journal of Post Keynesian Economics, vol. 19 n. 3, pp. 377-385.
VERSPAGEN B. (1990), “Localized Technological Change, Factor Substitution and the Productivity Slowdown”, in Freeman C. and Soete L. (eds.), New Explorations in the Economics of Technical Change, London: Pinter Publishers, pp. 193-211.
WEITZMAN M. (1971), “Shiftable versus Non-Shiftable Capital: A Synthesis”, Econometrica, vol. 39 n. 3, pp. 511-528.
Downloads
How to Cite
Issue
Section
License
