This paper develops a flexible price, two-sector nominal growth model, in order to study the nominal aspects of capital accumulation (convergence). We adopt a classical model of a small open economy with traded and nontraded goods, and enrich its structure with gradual investment and a...

"Education is the 'raw material' of the knowledge-based society which is at the centre of the new neo-classical growth theory, and most of all at the heart of the evolutionary growth theory, as the innovation capabilities of economies depend on human capital. According to the more recent...