An important role of education – and the resultant accumulation of human capital – for a less-developed economy is to facilitate technology diffusion in order for it to catch up with developed economies. This paper presents a model linking education, the accumulation of physical capital and technological progress. In the model, investment in education and the accumulation of physical capital are complementary, and intertwine with the technology progress through related effects on technology diffusion and the expansion of the technology frontier. The allocation of effort to education, the optimal savings rate and the technology gap are endogenously determined in the steady-state balanced growth equilibrium
Growth and Development | Technology and Innovation
Koh, Winston T. H. and Leung, Hing-Man.
Education, Technological Progress and Economic Growth. (2003). Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/1184
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