Software Production, Human Capital and Endogenous Growth: Theoretical Analysis and Empirical Evidence from India
AbstractPropelled by the rise of a vibrant software industry the Indian economy has demonstrated rapid growth since the 1990s. A novel three-sector endogenous growth model that encapsulates the salient features of an information technology oriented economy is developed. The dynamic optimization problem leads to a balanced growth path equilibrium characterized by output, physical capital, software assets, human capital and consumption growing at a uniform rate. Major implications of the model are reflected in empirical evidence from the growth trajectories of Indian states. The human capital production apparatus has a significant impact on economic growth. This has critical policy implications.
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Bibliographic InfoPaper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c012_007.
Length: 20 pages
Date of creation: Jun 2007
Date of revision:
endogenous growth; India; information technology; human capital; software;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-27 (All new papers)
- NEP-DEV-2007-08-27 (Development)
- NEP-DGE-2007-08-27 (Dynamic General Equilibrium)
- NEP-HRM-2007-08-27 (Human Capital & Human Resource Management)
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