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Imported Equipment, Human Capital and Economic Growth in Developing Countries

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  • Dulleck, Uwe
  • Foster, Neil

    ()
    (School of Economics and Finance, Faculty of Business, Queensland University of Technology GPO Box 2434, Brisbane, Queensland 4001, Australia.
    Department of Economics, The University of Vienna, Hohenstaufengasse 9, A-1010, Vienna, Austria.)

Abstract

That both equipment investment and human capital affect growth in developing countries is a well established fact in the empirical growth literature. Few studies have asked to what extent human capital and equipment investment are complements, with human capital affecting the ability of developing economies to make use of investment in capital goods. We study the effect of equipment investment on the growth of developing countries and the interrelationship between such investment and human capital. We find a complex interrelationship between equipment investment and human capital. Generally, the relationship between equipment investment and growth is lowest, and often negative, for countries with low levels of human capital, highest for countries within an intermediate range and somewhat in between for countries with the highest level of human capital.

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Bibliographic Info

Article provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).

Volume (Year): 38 (2008)
Issue (Month): 2 (September)
Pages: 233-250

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Handle: RePEc:eap:articl:v:38:y:2008:i:2:p:233-250

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Postal: GPO Box 2434, BRISBANE QLD 4001
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Keywords: Capital Goods Imports; Human Capital; Developing Countries; Technology;

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Cited by:
  1. Jiranyakul, Komain, 2011. "Are Thai Manufacturing Exports and Imports of Capital Goods Related?," MPRA Paper 45654, University Library of Munich, Germany.
  2. Stefano Lucarelli & Daniela Palma & Roberto Romano, 2013. "Quando gli investimenti rappresentano un vincolo. Contributo alla discussione sulla crisi italiana nella crisi internazionale," Moneta e Credito, Economia civile, vol. 66(262), pages 167-203.
  3. Daria Ciriaci & Sandro Montresor & Daniela Palma, 2013. "Do KIBS make manufacturing more innovative? An empirical investigation for four European countries," JRC-IPTS Working Papers on Corporate R&D and Innovation 2013-04, Institute of Prospective Technological Studies, Joint Research Centre.
  4. Dulleck, Uwe & Foster, Neil, 2008. "Imported Equipment, Human Capital and Economic Growth in Developing Countries," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, Queensland University of Technology (QUT), School of Economics and Finance, vol. 38(2), pages 233-250, September.
  5. Sami SAAFI & Fouzi SBOUI, 2011. "LES OPPORTUNITES DES INVESTISSEMENTS DIRECTS ETRANGERS LES OPPORTUNITES DES INVESTISSEMENTS DIRECTS ETRANGERS, DIFFUSION TECHNOLOGIQUE ET DEMANDE DE LA MAIN-D’OEUVRE PAR QUALIFICATION DES INDUSTRIES T," Working Papers 240, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.

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