Economic growth and the interaction between human and physical capital: The influence of foreign direct investment in India and Singapore

A new model of economic growth is the basis of a stylized comparison of India and Singapore. The focus of the comparison is the effect of foreign direct investment policies on human capital development.;The model's innovation is the technology governing human capital accumulation. The specification can imply a direct relationship between human and physical capital in reduced form. In general the model displays positive long run per capita output growth, with the rate given by an increasing function of the ratio of human capital investment to physical capital investment.