Should developing countries concentrate on the production of more capital goods than consumer goods?

Question

Should developing countries concentrate on the production of more capital goods than consumer goods?

Answer 1

Nope..most developing countries dont have the technology to produce high quality Capital goods that is desired for exporting. Capital goods are not consumed internally as much as consumer goods and hence they are most likely to waste resources rather than gain any revenue if they shift to Capital goods that wouldnt find a market.

Answer 2

If they produce more consumption goods primary for internal consumption - then it will not help these countries to become developed faster. If they produce consumer goods for export - then it's not a problem and is all right to extend production (up to 50-60% of economy size).

In case if they wish to develop faster then it's better to set priority in producing largely capital goods - but still in balance because capital goods depreciate so size of production of capital goods should be in balance with depreciation rate - otherwise part of produced capital goods will become obsolete due to overproduction. This is one of main reasons why growth (development) should be balanced.