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Urbanization, human capital, and cross-country productivity differences

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  • Kumar, Alok
  • Kober, Brianne

Abstract

In this paper, we empirically examine the effects of health, education, and urbanization on the total factor productivity (TFP) of a large number of countries. We find that both urbanization and health indicators (life expectancy, infant mortality rate, and the risk of malaria) significantly affect TFP. Education has an insignificant effect on TFP. Coefficients of indicators of health and urbanization remain highly significant even after controlling for endogeneity.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 117 (2012)
Issue (Month): 1 ()
Pages: 14-17

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Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:14-17

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Augmented Solow growth model; TFP; Health; Education; Urbanization;

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  1. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1998. "The Quality of Goverment," NBER Working Papers 6727, National Bureau of Economic Research, Inc.
  2. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
  3. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
  4. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  5. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
  6. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  7. Kana Fuse, 2010. "Variations in attitudinal gender preferences for children across 50 less-developed countries," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 23(36), pages 1031-1048, November.
  8. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
  9. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
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