This paper follows the suggestion of recent empirical studies on growth and convergence that highlight the importance of industry-level analysis to shed additional light on the conclusions of aggregate level studies to investigate the role of education on productivity growth in a sample of fifteen manufacturing industries in eleven OECD countries over 1980-2000. The insights from new growth theory and a modified and augmented version of the Benhabib and Spiegel (1994) specification are the basis for the empirical analysis of the role of education in innovation and imitation activities highlighting a role for specific schooling levels across industries according to their technological characteristics. The results can have interesting policy implications. The specialisation of countries in industries with different technological characteristics requires the education of a country's population on the appropriate schooling level and the returns to investing in education differ across industries and countries depending on whether they are leaders or not.
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Article provided by Cyprus Economic Society and University of Cyprus in its journal Ekonomia.
Volume (Year): 9 (2006) Issue (Month): 2 (Winter) Pages: 202-221 Download reference. The following formats are available: HTML
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