Spagat, M (2003) Human Capital and the Future of Transition Economies.
Full text access: Open
Transition economies have an initial condition of high human capital relative to GDP per capita, giving them high growth potential. In the model, at a good equilibrium a large nuber of children of well-educated parents take advantage of their familybackgrounds and invest substantially in their own human capital. At a bad equilibrium, past educational achievements are wasted as children fail to build upon their parents' achievements. Policies and economic conditions can be decisive in determining the outcome. The model provides a basis for distinguishing development economics from transition economics.
This is a Published version This version's date is: 02/10/2003 This item is not peer reviewed
https://repository.royalholloway.ac.uk/items/89a8190b-98f8-9182-60a3-fc22e2239007/1/
Deposited by () on 23-Dec-2009 in Royal Holloway Research Online.Last modified on 23-Dec-2009