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Estimating Human and Physical Capital Stocks in Data-Scarce Environments: A Methodological Note and Application to Guatemala

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  • Loening, J.L.

Abstract

This paper presents a methodology to construct time series of human and physical capital, taking into consideration the data-scarce environment of a developing country. A particular focus is placed on the construction of the human capital stock, which is defined by average years of schooling. For the case of Guatemala, a country which is deficient in easily accessible data even within the Latin American context, the paper shows how reliable time series can be obtained for the period 1950-2002. As such, the results of this paper may be useful for data-generating exercises in developing countries with similar constraints. Moreover, the estimates presented here provide a valuable starting point for future regression or growth accounting analyses.

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File URL: http://www.usc.es/economet/reviews/ijaeqs215.pdf
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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal International Journal of Applied Econometrics and Quantitative Studies .

Volume (Year): 2 (2005)
Issue (Month): 1 ()
Pages: 84-114

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Handle: RePEc:eaa:ijaeqs:v:2:y2005:i:1_5

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Related research

Keywords: Human Capital; Physical Capital; Economic Growth; Guatemala;

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  1. Psacharopoulos, George & Patrinos, Harry Anthony, 2002. "Returns to investment in education : a further update," Policy Research Working Paper Series 2881, The World Bank.
  2. Nehru, Vikram & Dhareshwar, Ashok & DEC, 1994. "New estimates of total factor productivity growth for developing and industrial countries," Policy Research Working Paper Series 1313, The World Bank.
  3. Norman Loayza & Pablo Fajnzylber & César Calderón, 2004. "Economic Growth in Latin America and The Caribbean: Stylized Facts, Explanations, and Forecasts," Working Papers Central Bank of Chile 265, Central Bank of Chile.
  4. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment: Updates and Implications," CID Working Papers 42, Center for International Development at Harvard University.
  5. Loening, Josef L., 2005. "Effects of primary, secondary, and tertiary education on economic growth : evidence from Guatemala," Policy Research Working Paper Series 3610, The World Bank.
  6. Jorge Roldos, 1997. "Potential Output Growth in Emerging Market Countries," IMF Working Papers 97/104, International Monetary Fund.
  7. Loening, J.L., 2004. "Human Capital, Technology diffusion and Economic Growth in Low-to-Middle Income Country: a time series perspective of Guatemala, 1950-2001," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(3).
  8. Nehru, Vikram & Swanson, Eric & Dubey, Ashutosh, 1995. "A new database on human capital stock in developing and industrial countries: Sources, methodology, and results," Journal of Development Economics, Elsevier, vol. 46(2), pages 379-401, April.
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