Zhang, PengfeiLin, Justin Yifu2012-03-192012-03-192009-04-01https://hdl.handle.net/10986/4098The authors develop an endogenous growth model that combines structural change with repeated product improvement. That is, the technologies in one sector of the model become not only increasingly capital-intensive, but also progressively productive over time. Application of the basic model to less developed economies shows that the (optimal) industrial structure and the (most) appropriate technologies in less developed economies are endogenously determined by their factor endowments. A firm in a less developed country that enters a capital-intensive, advanced industry in a developed country would be nonviable owing to the relative scarcity of capital in the factor endowments of less developed countries.CC BY 3.0 IGOADVANCED COUNTRIESAGGREGATE PRODUCTION FUNCTIONAGGREGATIVE MODELAGRICULTUREALLOCATIONAPPROPRIATE TECHNOLOGIESAPPROPRIATE TECHNOLOGYAUTOMOTIVEBALANCED ECONOMIC GROWTHBALANCED GROWTHBASICCADCAPITAL ACCUMULATIONCAPITAL FORMATIONCAPITAL STOCKCAPITAL-LABORCAPITAL-LABOR RATIOCAPITALISMCOMPARATIVE ADVANTAGECOMPETITIVE MARKETCONSTANT ELASTICITYCONSTANT RATECONSUMPTION GOODSDEMAND FUNCTIONSDEMOCRACYDEVELOPED ECONOMIESDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT STRATEGYDIFFERENTIAL EQUATIONSDIMINISHING RETURNSDISCOUNT RATEECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC IMPLICATIONSECONOMIC INSTITUTIONSECONOMIC PERFORMANCEECONOMIC REFORMECONOMIC REVIEWECONOMIC STUDIESELASTICITYELASTICITY OF SUBSTITUTIONENDOGENOUS GROWTHENDOGENOUS GROWTH MODELENDOGENOUS INNOVATIONEQUILIBRIUMEVOLUTION OF TECHNOLOGYEXPANDING VARIETYEXPECTED PRESENT VALUEFACTOR DEMANDFACTOR ENDOWMENTSFACTORS OF PRODUCTIONFINANCIAL SECTORGLOBAL ECONOMYGROWTH LITERATUREGROWTH MODELGROWTH OF NATIONSGROWTH RATEGROWTH RATESGROWTH THEORYINCOMESINCREASING RETURNSINDEXESINNOVATIONSINTERMEDIATE GOODSINTERNATIONAL TRADEKNOW-HOWLABOR FORCELABOR MARKETLDCSLESS DEVELOPED COUNTRIESLESS DEVELOPED COUNTRYLONG-RUN GROWTHLONG-RUN POLICYMACROECONOMICSMODEL OF GROWTHMODERN ECONOMIC GROWTHMONETARY ECONOMICSMONOPOLYNEOCLASSICAL ECONOMICSNEOCLASSICAL GROWTHNEOCLASSICAL GROWTH THEORYNOMINAL INTEREST RATEOLIGOPOLYOPTIMIZATIONOPTIMUM GROWTHPATENTSPER CAPITA INCOMEPOLICY ANALYSISPOLICY IMPLICATIONSPOLICY MEASURESPOLICY RESEARCHPOLITICAL ECONOMYPOPULATION GROWTHPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPROFIT MAXIMIZATIONPUBLIC POLICYRAPID GROWTHRELATIVE IMPORTANCERENT SEEKINGRISK AVERSIONSAVINGSSECTOR MODELSOCIAL DEVELOPMENTSOCIALISMSTATIC EQUILIBRIUMSTRUCTURAL CHANGETECHNICAL CHANGETECHNICAL PROGRESSTECHNOLOGICAL CHANGETECHNOLOGICAL PROGRESSTFPTOTAL FACTOR PRODUCTIVITYUTILITY FUNCTIONVARIABLE INPUTSWorld Bank10.1596/1813-9450-4905