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Does human capital stimulate investment in physical capital?: Evidence from a cost system framework

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  • López-Bazo, Enrique
  • Moreno, Rosina

Abstract

The direct effect of human capital on economic growth has been widely analysed in the economic literature. This paper, however, focuses on its indirect effect as a stimulus for private investment in physical capital. The methodological framework used is the duality theory, estimating a cost system aggregated with human capital. Empirical evidence is given for Spain for the period 1980-2000. We provide evidence on the indirect effect of human capital in making private capital investment more attractive. Among the main explanations for this process, we observe that higher worker skill levels enable higher returns to be extracted from investment in physical capital.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 25 (2008)
Issue (Month): 6 (November)
Pages: 1295-1305

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Handle: RePEc:eee:ecmode:v:25:y:2008:i:6:p:1295-1305

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: Human capital Physical capital Growth Dual framework;

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Citations

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Cited by:
  1. Manca, Fabio, 2011. "Education, Catch-up and Growth in Spain," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 20, pages 5-28.
  2. Enrique López-Bazo & Burhan Can Karahasan, 2011. "The Spatial Distribution of Human Capital: Can It Really Be Explained by Regional Differences in Market Access?," ERSA conference papers ersa11p1122, European Regional Science Association.
  3. Juan Luis Jiménez & Jordi Perdiguero & Ancor Suárez, 2011. "Debating as a classroom tool for adapting learning outcomes to the European higher education area," IREA Working Papers 201109, University of Barcelona, Research Institute of Applied Economics, revised Jun 2011.
  4. Lluís Bermúdez & Antoni Ferri & Montse Guillén, 2011. "A correlation sensitivity analysis of non-life underwriting risk in solvency capital requirement estimation," IREA Working Papers 201113, University of Barcelona, Research Institute of Applied Economics, revised Sep 2011.
  5. David Castells & Vicente Royuela, 2011. "Agglomeration, Inequality and Economic Growth," IREA Working Papers 201114, University of Barcelona, Research Institute of Applied Economics, revised Apr 2012.

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