Education and growth: an industry-level analysis of the Portuguese manufacturing

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Education and growth: an industry-level analysis of the Portuguese manufacturing

Author Info

Marta Simões () (GEMF and Faculdade de Economia, Universidade de Coimbra)
Adelaide Duarte () (GEMF and Faculdade de Economia, Universidade de Coimbra)

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Abstract

TThis paper investigates the education–growth link at the more disaggregate industry level in the Portuguese manufacturing sector with a focus on different levels of education. The insights from new growth theory and a modified and augmented version of the Benhabib and Spiegel (1994) specification are the basis for the empirical analysis of the role of education in innovation and imitation activities highlighting a role for specific schooling levels across industries according to their technological characteristics and its interaction with international trade. We use data for the period 1986–1997, fourteen Portuguese manufacturing industries and panel data econometric techniques. Our most robust finding concerns the relevance of technology spillovers embodied in imports for productivity growth, as long as manufacturing industries employ workers with skills provided by secondary education. The Portuguese manufacturing industry cannot rely on automatic technological catch up for productivity growth so active trade and education policies are crucial to recover from the present bottom position in the rank of OECD productivity levels.

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Publisher Info
Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2007-03.

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Length: 37 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:gmf:wpaper:2007-03

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Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
I20 - Health, Education, and Welfare - - Education - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

This paper has been announced in the following NEP Reports:

NEP-ALL-2007-10-20 (All new papers)
NEP-CSE-2007-10-20 (Economics of Strategic Management)
NEP-EDU-2007-10-20 (Education)
NEP-EFF-2007-10-20 (Efficiency & Productivity)
NEP-HRM-2007-10-20 (Human Capital & Human Resource Management)
NEP-INT-2007-10-20 (International Trade)
NEP-TID-2007-10-20 (Technology & Industrial Dynamics)

References listed on IDEAS
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