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Human Capital, Exports, and Economic Growth: A Causality Analysis for Taiwan, 1952–1995

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  • Yih‐chyi Chuang

Abstract

By using cointegration and error‐correction representation methodology, this paper tested the causal relationship among human capital accumulation, exports, and economic growth using data pertaining to Taiwan’s real GDP, real exports, and higher education attainment over the period 1952–95. The main findings of the paper are that human capital accumulation fosters growth and stimulates exports, while exports promote long‐run growth by accelerating the process of human capital accumulation. Taiwan’s case study thus supports the human capital‐based endogenous growth theory and the export‐led growth hypothesis.

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  • Yih‐chyi Chuang, 2000. "Human Capital, Exports, and Economic Growth: A Causality Analysis for Taiwan, 1952–1995," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 712-720, November.
    • Handle: RePEc:bla:reviec:v:8:y:2000:i:4:p:712-720
    DOI: 10.1111/1467-9396.00252
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    1. Khan, Jangraiz & Khattak, Naeem Ur Rehman Khattak & Khan, Amir, 2015. "Human Capital-Economic Growth Nexus: A Causality Analysis for Pakistan," MPRA Paper 65689, University Library of Munich, Germany.
    2. Ouoba, Youmanli, 2020. "Natural resources fund types and capital accumulation: A comparative analysis," Resources Policy, Elsevier, vol. 66(C).
    3. Jarosław M. Nazarczuk & Stanisław Umiński & Tomasz Brodzicki, 2020. "Determinants of the spatial distribution of exporters in regions: the role of ownership," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(3), pages 547-574, June.
    4. Colantonio Emiliano & D'Angelo Francesca & Odoardi Iacopo & Scamuffa Domenico, 2010. "Internationalization And Innovation: The Challenges For Europe In A Changing World," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 214-219, December.
    5. Paresh Kumar Narayan & Russell Smyth, 2004. "Temporal Causality between Human Capital and Real Income in Cointegrated VAR Processes: Empirical Evidence from China, 1960-1990," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 3(1), pages 1-11, April.
    6. Aurora A.C. Teixeira & Natércia Fortuna, 2006. "Human capital, trade and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," FEP Working Papers 226, Universidade do Porto, Faculdade de Economia do Porto.
    7. Farok J. Contractor & Susan M. Mudambi, 2008. "The influence of human capital investment on the exports of services and goods: An analysis of the top 25 services outsourcing countries," Management International Review, Springer, vol. 48(4), pages 433-445, April.
    8. Richard Vogel & W. Hubert Keen, 2010. "Public Higher Education and New York State’s Economy," Economic Development Quarterly, , vol. 24(4), pages 384-393, November.
    9. Paresh Narayan & Russell Smyth, 2005. "Trade Liberalization and Economic Growth in Fiji. An Empirical Assessment Using the ARDL Approach," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 10(1), pages 96-115.
    10. Burcu Kiran, 2014. "Testing the impact of educational expenditures on economic growth: new evidence from Latin American countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1181-1190, May.
    11. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2014. "Relationship Between Trade Openness And Economic Growth Of India: A Time Series Analysis," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 6(1 (March)), pages 45-69.
    12. Adeel Saleem & Maqbool H. Sial & Ahmed Raza Cheema, 2023. "Does an asymmetric nexus exist between exports and economic growth in Pakistan? Recent evidence from a nonlinear ARDL approach," Economic Change and Restructuring, Springer, vol. 56(1), pages 297-326, February.
    13. Gilberto Fraga & Carlos Bacha, 2011. "The Non-linearity of the Relationship between Human Capital and Exports in Brazil – evidences of regional differences," ERSA conference papers ersa11p1016, European Regional Science Association.
    14. Ghosh Dastidar, Sayantan & Chatterji, Monojit, 2015. "Public expenditure in different education sectors and economic growth: The Indian experience," MPRA Paper 66903, University Library of Munich, Germany.
    15. Aremo Adeleke Gabriel, 2013. "Trade Liberalisation, Economic Growth and Human Resource Development in Nigeria: Causal Implications (1980-2009)," Journal of Economics and Behavioral Studies, AMH International, vol. 5(10), pages 696-707.

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