Abstract
This paper studies the role of income distribution and technology transfer in the process of economic development. A novel aspect of the model is that the composition of human capital as well as the level affect economic growth. Utilizing an overlapping-generations model in which income distribution changes endogenously, we present an economic explanation for why some countries could not start modern economic growth; why some countries took off but have apparently stopped growing after some time; and why some countries have successfully developed and continue to grow.
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Zang, H. Technology Transfer, Income Distribution and the Process of Economic Development. Open Economies Review 8, 245–270 (1997). https://doi.org/10.1023/A:1008242831419
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DOI: https://doi.org/10.1023/A:1008242831419