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Specific Technology, Human Capital and Economic Development
Current Issue
Volume 5, 2018
Issue 4 (July)
Pages: 71-87   |   Vol. 5, No. 4, July 2018   |   Follow on         
Paper in PDF Downloads: 25   Since Sep. 1, 2018 Views: 865   Since Sep. 1, 2018
Authors
[1]
Diana Loubaki, Department of Economics, ISG, Marien NGouabi University, Brazzaville, Republic of Congo.
Abstract
Recent diffusion models can’t fully explain why some countries grow and some others can’t. In order to bring a precise explanation, the economic behaviour is assimilated to a complex dynamics characterized by three stages i.e the catching up, the convergence and the falling behind zones where in each of them respectively, in the highest zone, “the catching up”, the dynamic path may exhibits high growth rates after having reached the locus where development fully settled i.e “convergence” making the economies of the whole world grow the same through the time or it may exhibit multiple equilibria, thus stagnates and exhibits a cycle 2r period equilibrium when turning around or worst i.e regress, thus exhibits a chaotic equilibrium. The whole is caused by human capital and specific technology interaction nature both in agriculture and in manufacture which when positive, generates innovations while relative wages and economic growth boost development since technology is skill intensive.
Keywords
Specific Technology, Learning, Innovations, Human Capital Investment, Trainer’s Quality, Social Planner, Economic Development Dynamics
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