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Human Capital And Productivity Growth In The Italian Regional Economies: A Sectoral Analysis

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Author Info
Sergio Lodde ()
Abstract

The paper examines the relationship between human capital and productivity growth with reference to the Italian regions. Two approaches can be distinguished. One belonging to the neoclassical tradition stresses the accumulation of human capital as a determinant of growth, while the other, inspired by Nelson and Phelps, emphasizes the role of the stock in developing endogenous technology and catching up with more advanced economies. These hypotheses have been tested at an aggregate level but results might be the overall outcome of different processes across sectors due to the different catching-up potential. In particular we expect the Nelson-Phelps hypothesis to be more relevant in the industrial sector where innovation is the most important growth determinant. A model is estimated which allows to test both the neoclassical and the Nelson-Phelps hypotheses breaking down the analysis by sector. The results do not confirm our expectations. In the industrial sector the neoclassical hypothesis is clearly rejected by the data. Some evidence supporting the Schumpeterian one can be detected when the technical component of human capital is taken into account but it is not robust to changes in the model specification. In the service sector the results are inconclusive as well. A positive and significant effect of human capital accumulation has been found for the whole sector but the explanatory power of this variable decreases considerably in the marketable services branch.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200711.

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Date of creation: 2007
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Handle: RePEc:cns:cnscwp:200711

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Related research
Keywords: growth human capital regions sectors

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
R11 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Analysis of Growth, Development, and Changes

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  2. Di Liberto, Adriana, 2008. "Education and Italian regional development," Economics of Education Review, Elsevier, vol. 27(1), pages 94-107, February. [Downloadable!] (restricted)
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  3. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September. [Downloadable!] (restricted)
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  5. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October. [Downloadable!] (restricted)
  6. Nonneman, Walter & Vanhoudt, Patrick, 1996. "A Further Augmentation of the Solow Model and the Empirics of Economic Growth for OECD Countries," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 943-53, August. [Downloadable!] (restricted)
  7. Brunello, Giorgio & Comi, Simona & Lucifora, Claudio, 2000. "The Returns to Education in Italy: A New Look at the Evidence," IZA Discussion Papers 130, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November. [Downloadable!] (restricted)
  9. Alan B. Krueger & Mikael Lindahl, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December. [Downloadable!] (restricted)
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  10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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