New Technology, Human Capital and Growth for European Transitional Economies.

Abstract

We consider a transitional country with three sectors in economy: con- sumption goods, new technology, and education. Productivity of the con- sumption goods sector depends on new technology and skilled labor used for production of the new technology. Then there might be three stages of economic growth. In the first stage the country concentrates on produc- tion of consumption goods; in the second stage the country imports both physical capital and new technology capital; in the last stage the country imports new technology capital and invests in training and education of high skilled labor in the same time.Optimal growth model, New technology capital, Human Capital, Developing country.