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Human capital, mechanisms of technological diffusion and the role of technological shocks in the speed of diffusion. Evidence from a panel of Mediterranean countries

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Author Info
Maria Adelaide Duarte () (Faculty of Economics, University of Coimbra)
Marta Simões () (Faculty of Economics, University of Coimbra)

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Abstract

The purpose of this paper is to assess the importance of human capital as a facilitator of technological diffusion in a sample of developing Mediterranean countries based on the predictions of endogenous growth theory. The evidence does not support the Benhabib and Spiegel (2002) non-linear specification that accommodates both the hypothesis of technological convergence and convergence clubs but the linear specification originally proposed by Benhabib and Spiegel (1994), confirming a role for human capital in both innovation and imitation activities. We also tested the complementarity between FDI, a form of embodied technology diffusion, and human capital but this hypothesis was not confirmed and investigated the importance of human capital for the diffusion of ICT confirming it is fundamental to benefit from these technologies. Finally, we analysed the importance of technological shocks for technological diffusion using a VAR model finding evidence of factor complementarity between TFP, physical capital investment and human capital in the absorption of any of the shocks considered.

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Article provided by Faculdade de Economia, Universidade de Coimbra in its journal Notas Económicas.

Volume (Year): (2004)
Issue (Month): 20 (December)
Pages: 102-134
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Handle: RePEc:gmf:journl:y:2004:i:20:p:102-134

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  6. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August. [Downloadable!] (restricted)
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  7. 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. [Downloadable!] (restricted)
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  8. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June. [Downloadable!] (restricted)
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  9. Andrew Levin & Chien-Fu Lin, 1993. "Unit Root Tests in Panel Data: New Results," University of California at San Diego, Economics Working Paper Series 93-56, Department of Economics, UC San Diego. [Downloadable!]
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