New Technology, Human Capital, and Growth in a Developing Country

In a developing country with three sectorsconsumption goods, new technology, and educationthe productivity of the consumption goods depends on new technology and skilled labor used to produce this new technology. In the first stage of economic growth, the country concentrates on the production of consumption goods; in the second, the country must import both physical capital and new technology capital to produce consumption goods and new technology; in the third, the country must import capital and invest in the training and education of highly skilled labor.