DEPOCEN Working Paper Series
Cuong Le Van, Tu-Anh Nguyen, 2009. "Total Factor Productivity, Saving Rate and Learning-by-Doing in Growth Process."
In transitional stage saving rate play an important role in output growth rate as proposed by Krugman. Accumulationists are also right as claiming that learning-by-doing play an important role in TFP growth in NIEs. However, using a CES production technology we can show that the growth model based purely on learning-by-doing is constrained by labor growth rate. If the latter is constant in the long-run, then the growth can not be sustained.
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