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Romer Meets Kongsamut-Rebelo-Xie in a Nonbalanced Growth Model

Li, Shunhan and Wang, Gaowang and Wang, Jin (2018): Romer Meets Kongsamut-Rebelo-Xie in a Nonbalanced Growth Model.

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Abstract

To comprehend the relationship scheme between human capital accumulation and structural change observed in developing and developed countries, the paper combines Romer (1990)'s endogenous technological change with Kongsamut, Rebelo and Xie (1997, 2001)'s structural change model and shows that human capital accumulation speeds up structural change in the early stage of structural change with relatively low human capital while slows down it in its later stage with relatively high human capital.

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