Catch me if you learn: development-specific education and economic growth
AbstractThis paper presents a theoretical and empirical investigation of the relationship between human capital composition and economic growth and points to the importance of tertiary education in the explanation of growth for developing countries. From the theoretical point of view, we depart from previous literature and allow for non-constant returns to scale in imitation and innovation activities. Differently from previous literature, our results show that, under broad and plausible model parameterizations, the marginal growth effect of skilled workers is increasing with the distance to the frontier for sufficiently poor countries while it is decreasing (in agreement with the existing literature) only for countries close to the technological frontier. Our empirical analysis provides robust evidence for this theoretical prediction using a 10-year panel of 85 countries for the years in between 1960 and 2000 as well as using System GMM technique to address the problem of endogeneity. Results are robust to different proxies of human capital and different specifications.
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Bibliographic InfoPaper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201225.
Date of creation: 2012
Date of revision:
growth; unskilled; skilled; human capital; imitation; innovation; technological frontier;
Find related papers by JEL classification:
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-03 (All new papers)
- NEP-DEV-2012-11-03 (Development)
- NEP-FDG-2012-11-03 (Financial Development & Growth)
- NEP-HRM-2012-11-03 (Human Capital & Human Resource Management)
- NEP-INO-2012-11-03 (Innovation)
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