NEW TECHNOLOGY, HUMAN CAPITAL AND GROWTH FOR EUROPEAN TRANSITIONAL ECONOMIES

We consider a transitional country with three sectors in economy: consumption goods, new technology, and education. Productivity of the consumption 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 …rst stage the country concentrates on production 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. Keywords: Optimal growth model, New technology capital, Human Capital, Developing country. JEL Classi…cation: D51, E13 M.H. Nguyen acknowledges the …nancial support of the project: ANR-CEDEPTE Jeunes Chercheuses et Jeunes Chercheurs, n ANR-05-JCJC-0134-01.