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Age-structured Human Capital and Spatial Total Factor Productivity Dynamics

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Author Info
Mishra, Tapas (World Population Program, International Institute for Applied Systems Analysis, Laxenburg, Austria)
Jumah, Adusei (Department of Economics and Finance, Institute for Advanced Studies, Vienna, Austria, and Department of Economics, University of Vienna, Vienna, Austria)
Parhi, Mamata (BETA, Louis-Pasteur University, Strasbourg, France)

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Abstract

This paper models total factor productivity (TFP) in space and proposes an empirical model for TFP interdependence across spatial locations. The interdependence is assumed to occur due to age-structured human capital dynamics. A semi-parametric spatial vector autoregressive framework is suggested for modeling spatial TFP dynamics where the role of demographic state and technological change are explicitly incorporated in the model to influence their spatial TFP co-movements. Empirical scrutiny in case of Asian countries suggests that cross-country human capital differences in their accumulation and appropriation pattern significantly influenced TFP volatility interdependence. The finding of complementarity in TFP in spatial locations calls for joint policy program for improving aggregate and individual country welfare.

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File URL: http://www.ihs.ac.at/publications/eco/es-226.pdf
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File Function: First version, 2008
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Publisher Info
Paper provided by Institute for Advanced Studies in its series Economics Series with number 226.

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Length: 23 pages
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:ihs:ihsesp:226

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Related research
Keywords: Total factor productivity; Spatial growth; Non-linearity; Human capital; Age-structure; Semi-parametric VAR;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
N10 - Economic History - - Macroeconomics and Monetary Economics; Growth and Fluctuations - - - General, International, or Comparative
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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