Human Capital Accumulation, Dynamic Comparative Advantage And Economic Growth In Developing Countries

This article aims to explore that dynamic comparative advantage is the guiding principle of economic growth in developing countries. Generally speaking, a country's economic growth performance mainly depends on the following three factors:(1) human capital accumulation; (2) technological progress; (3) upgrading of the industrial structure (the industrial structure varies from low value-added industries to high value-added industries). Of all these three factors, the most important one is human capital accumulation. Based on this, the entire analysis starts in accordance with the dynamic comparative advantage. Human capital accumulation promotes technological progress so that factors of production comparative advantage of developing countries show dynamic features:on the one hand, economic development rises from low-level resources-intensive and labor-intensive technologies to advanced capital-intensive and technology-intensive technologies, so that the speed of technological progress in the developing countries is faster than that in the developed countries,making the velocity of the former economic growth than that of the latter;on the other hand, industrial structure is the embodiment of the structure of comparative advantage about production factors,and the dynamic evolution of the structure of comparative advantage about production factors brings about the change of industrial structure from lower to higher level,making it possiple for industrial structure in the developing countries to evolve towards their own beneficial direction.This dissertation tries to expound that the dynamic comparative advantage is the guiding principle of economic growth in developing countries from the following four aspects:(1)Why the dynamic comparative advantage is the guiding principle of the economic growth in developing countries? 2) Why the dynamic comparative advantage is the guiding principle of technological progress in developing countries? (3) Why the dynamic comparative advantage is the guiding principle of the path of economic growth in developing countries? (4) Why the dynamic comparative advantage is the guiding principle of upgrading the industrial structure in developing countries?For the first question, this paper illuminates that the dynamic comparative advantage is the guiding principle of economic growth in developing countries by way of combination of the following sides:the evolution of dynamic comparative advantage,the unity of comparative advantage and competitive advantage,and the formation mechanism of dynamic comparative advantage in developing countries.For the second question, this paper holds that the dynamic comparative advantage is the guiding principle of technological progress in developing countries. For many developing countries, when their human capital accumulation is faster, and their ability to absorb technology and innovate technology is strong so that the speed of technological progress in the developing countries is better than that in developed countries,thus the developing countries can use fully and effectively the structure of comparative advantage about factors of production,and develop the dynamic comparative advantage,and meet the market demand and even increase their steady economic growth rate.So for the developing countries,even if there is a large economic gap which lags behind the developed countries,they can achieve effectively the economic convergence with the developed countries; otherwise, and vice versa. This explains why the economic development will show a completely different performance in the same implementation of open economic policies in the developing countries.For the third question, on the one hand, through the interpretation of inherent decision-making mechanism of the appropriate technology and theoretical analysis and empirical analysis of appropriate technology to promote economic growth in the developing countries,we know that for a country,a healthy economic development is based on adhering to economic growth path of dynamic comparative advantage.Thus the'developing countries can use fully and effectively the stucture of comparative advantage about production factors,and make them develop the effectiveness of dynamic comparative advantages to enhance their steady economic growth rate,and make it a gradual economic convergence with the developed economies.This shows that the practice of the above-mentioned dynamic comparative advantage is successful.It is positive evident that the dynamic comparative advantage is the guiding principle of economic growth path in developing countries. On the other hand, developing countries disobey the the guiding principle of economic growth of dynamic comparative advantage,want to break through the constraints of the low level of technology to upgrade the industrial structure and overcome the negative impact of the weak capital-intensive industries (heavy industry) to economic development,thus make national economy grow rapidly and reach the goal to realize the powerful and modern countries in the shortest possible time. Through the distorted product and factor in the relative prices, the developing countries can mobilize resources and reduce the capital-intensive industry development costs, and build a corresponding resource planning allocation system and deprive of the autonomy of enterprises to ensure that resource is prior to allocation of capital-intensive industries.Thus the economic growth path is built on the way of violating dynamic comparative advantage.Therefore they can not utilize fully and effectively the structure of comparative advantage about production factors and can not develop their dynamic comparative advantage and meet the market demand,which bring about the low level of economic growth. This shows that the practice of the violation of dynamic comparative advantage is a failure.It is a negative evident that dynamic comparative advantage is guiding principles of economic growth path in developing countries.Both positive and negative angles verify dynamic comparative advantage is the guiding principle of economic growth path in the developing countries.For the fourth question, in order to advance the industrial structure, the developing countries must upgrade their human capital accumulation and improve efficiency of human capital accumulation so that their human capital accumulation growing at a higher rate than that in developed countries.This can use fully and effectively their structure of comparative advantage about factors of production,so that they can develop the effectiveness of dynamic comparative advantage and they are possible to continue to enter the newer, more advanced industries, and upgrade the industrial structure in order to continue to narrow the gap of the industrial structure with the developed countries,and achieve rapid economic growth. Therefore, the dynamic comparative advantage is the guiding principle to upgrade the industrial structure and to promote economic growth in developing countries.Finally, this paper concludes that dynamic comparative advantage is the guiding principle of economic growth in developing countries.