Reforms capable of enhancing high and sustainable growth rates in developed as well as in developing countries, which may also be conducive to rebalancing of domestic absorption in deficit and surplus countries, most notably US and China. 5 He emphasized accumulation of human capital, education and Research & Development as essential elements to raise countries’ productivity and to drive endogenous technological change.
In his analyses Enzo devoted much attention to China. To sustain high growth rates, China should move, he argued, on to a new development phase where accumulation of human capital would outpace that of physical capital.