Growth miracles reexamined
- Papageorgiou, Chris
- Pérez Sebastián, Fidel
Año de publicación: 2001
Número: 3
Tipo: Documento de Trabajo
Resumen
In this paper we propose a growth model in which the combined effect of human capital and technology adoption is the key factor in replicating and explaining growth miracles. Using standard technologies and parameterization, we show that the calibrated model generates output growth paths consistent with the ones displayed by miracle economies, such as Japan and South Korea. The driving force of our result is twofold: (a) the complementarity between human capital and technological adoption; (b) the reallocation of labor across sectors along the adjustment path.