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Regional Growth and Convergence: The Role of Human Capital in the Portuguese Regions

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Abstract

Potentially one of the most important determinants of regional economic growth and convergence is human capital, although due to a lack of data this factor is frequently omitted from econometric studies. In contrast, this paper constructs three measures of human capital at the NUTS III regional level for Portugal for the period 1991-2008 and then includes these variables in regional growth regressions. The results show that both secondary and higher levels of education have a significant positive effect on regional growth rates which may be regarded as supportive of Portuguese education policy, which over the last three decades has attempted to raise the regional human capital by locating higher education institutions across the country.

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File URL: http://www.lboro.ac.uk/departments/sbe/RePEc/lbo/lbowps/CardosoandPentecost.pdf
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Bibliographic Info

Paper provided by Department of Economics, Loughborough University in its series Discussion Paper Series with number 2011_03.

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Date of creation: Sep 2011
Date of revision: Sep 2011
Handle: RePEc:lbo:lbowps:2011_03

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Keywords: Human capital; Regional convergence; GMM;

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  1. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  2. Petrakis, P. E. & Stamatakis, D., 2002. "Growth and educational levels: a comparative analysis," Economics of Education Review, Elsevier, vol. 21(5), pages 513-521, October.
  3. Pereira, João & St. Aubyn, Miguel, 2009. "What level of education matters most for growth?: Evidence from Portugal," Economics of Education Review, Elsevier, vol. 28(1), pages 67-73, February.
  4. ?gel de la Fuente & Rafael Dom?ech, . "Human Capital In Growth Regressions: How Much Difference Does Data Quality Make?," UFAE and IAE Working Papers 446.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  5. Jess Benhabib & Mark Spiegel, 2002. "Human capital and technology diffusion," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
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  7. repec:chb:bcchwp:03 is not listed on IDEAS
  8. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
  9. Marius BRÜLHART & Nicole A. MATHYS, 2007. "Sectoral Agglomeration Economies in a Panel of European Regions," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 07.04, Université de Lausanne, Faculté des HEC, DEEP.
  10. 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.
  11. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. " Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
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Cited by:
  1. Marta Simões & João Sousa Andrade & Adelaide Duarte, 2013. "A Regional Perspective on Inequality and Growth in Portugal Using Panel Cointegration Analysis," GEMF Working Papers 2013-13, GEMF - Faculdade de Economia, Universidade de Coimbra.
  2. Kufenko, Vadim, 2012. "Empirical analysis of regional economic performance in Russia: Human capital perspective," Violette Reihe Arbeitspapiere 38/2012, Promotionsschwerpunkt "Globalisierung und Beschaeftigung".
  3. Catarina Cardoso & Eric J. Pentecost, 2011. "Human Capital and Spatial Heterogeneity in the Iberian Countries’ Regional Growth and Convergence," Discussion Paper Series 2011_04, Department of Economics, Loughborough University, revised Nov 2011.

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