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Human capital and export: Panel data causality analysis on provinces in Turkey

Author

Listed:
  • Murat Can GENÇ

    (Karadeniz Teknik Üniversitesi)

  • Mustafa Kemal DEĞER

    (Karadeniz Teknik Üniversitesi)

  • Metin BERBER

    (Karadeniz Teknik Üniversitesi)

Abstract

The outward-oriented and export based growth strategies in Turkish economy has recently transformed the structure of export into technology intensive motor vehicles and equipments. It is inevitable that this structural transformation of export will affect the amount of human capital needed in export sector. In parallel fashion, human capital may affect productivity spurring export. This paper examines the relationship between human capital and export in provinces of Turkey, using the panel causality method with annual data from 1996 to 2008. Empirical findings reveal that there is a unidirectional causal relationship running from export to human capital except for 5th order developed provinces. The significance of this empirical result is that export can be considered as an effective instrument increasing human capital accumulation. Overall, the paper suggests that export triggers increases in human capital in provinces which have different level of socio-economic development.

Suggested Citation

  • Murat Can GENÇ & Mustafa Kemal DEĞER & Metin BERBER, 2011. "Human capital and export: Panel data causality analysis on provinces in Turkey," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 26(299), pages 91-105.
    • Handle: RePEc:iif:iifjrn:v:26:y:2011:i:299:p:91-105
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    More about this item

    Keywords

    Human Capital; Export; Turkish Economy; Causality Analysis.;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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