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

Ricardo Azevedo Araujo, Gilberto Tadeu Lima

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. 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

 


Keywords


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

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