LEARNING-SEQUENCES AND STRUCTURAL DIVERSIFICATION IN DEVELOPING-COUNTRIES

The article explains structural diversification through the inter-rela tionship between learning by doing and the introduction of new technol ogy. Structural diversification is constrained when learning-by-doing benefits do not spill over across national borders and when the fixed- cost expenditure associated with the introduction of new technology is high. Structural diversification is seen as being the result of dynam ic learning sequences where introducing new, technology provides learn ing-by-doing benefits which, however, peter out once activities associ ated with the new technology have been repeated many times; new and mo re sophisticated technology is needed to continue learning learning ef fects.