Template-Type: ReDIF-Paper 1.0
Title: Human capital, equipment investment, and industrialization
Author-Name: Jonathan Temple
Author-Name: Hans-Joachim Voth
Creation-Date: 199607
Abstract: This paper constructs simple models in which industrialization is
  	driven by human capital accumulation. Industrialization  can explain
  	the robust correlation between equipment investment and growth in
  	developing countries. We show that government intervention is
  	justified within our stylized model, and indicate that a subsidy to
  	equipment investment is likely to be dominated  by other policies.
  	In the final section of the paper, we examine  the correlation
  	between equipment investment and growth, and find that it is
  	strongest in economies on the brink of industrialization. We also
  	show that this result is not easily explained by diminishing
  	returns.
Series: W
Number: 22 & 116
File-URL: http://www.nuff.ox.ac.uk/economics_wp/w22/human.zip
File-Format: Application/postscript/zipped
File-Size: 781,485 bytes
Handle: RePEc:nuf:econwp:0022