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Human Capital, Innovation Capability and Economic Growth

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  • Aurora Teixeira

    ()
    (CEMPRE, Faculdade de Economia da Universidade do Porto)

  • Natércia Fortuna

    ()
    (CEMPRE, Faculdade de Economia da Universidade do Porto)

Abstract

In this paper, we study human capital effects on economic growth of Portugal from 1960 to 2001. By using VAR and cointegration analyses, we obtain 0.42 long-run estimate for human capital elasticity, 0.30 long-run estimate for internal knowledge elasticity, and 0.40 long-run estimate for the elasticity related with the composite variable that measures the interaction between human capital and innovation capability. These estimates seem to confirm that human capital and indigenous innovation efforts are enormously important to the process of Portuguese economic growth during the period 1960-2001, though the relevance of the former overpasses that involving the creation of an internal basis of R&D. In addition, the indirect effect of human capital, through innovation, emerges here as critical, showing that a reasonably higher stock of human capital is important to enable a country to reap the benefits of its innovation indigenous efforts.

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Bibliographic Info

Paper provided by Universidade do Porto, Faculdade de Economia do Porto in its series FEP Working Papers with number 131.

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Length: 25 pages
Date of creation: Jul 2003
Date of revision:
Handle: RePEc:por:fepwps:131

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Keywords: human capital; innovation; economic growth;

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Citations

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Cited by:
  1. Soogwan Doh & Connie McNeely, 2012. "A multi-dimensional perspective on social capital and economic development: an exploratory analysis," The Annals of Regional Science, Springer, vol. 49(3), pages 821-843, December.
  2. Mário Rui Silva & Hermano Rodrigues, 2005. "Competitiveness and Public-Private Partnerships: Towards a More Decentralised Policy," FEP Working Papers 171, Universidade do Porto, Faculdade de Economia do Porto.
  3. Carlo Carraro & Enrica De Cian & Massimo Tavoni, 2012. "Human Capital, Innovation, and Climate Policy: An Integrated Assessment," Working Papers 2012.18, Fondazione Eni Enrico Mattei.
  4. Miguel St. Aubyn & João Pereira, 2004. "What Level of Education Matters Most for Growth? Evidence from Portugal," Working Papers Department of Economics 2004/13, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  5. Corrado Andini, 2008. "Portugal and the competitive disinflation: let the data speak," Economics Bulletin, AccessEcon, vol. 6(25), pages 1-11.
  6. Pedro Cosme Costa Vieira, 2005. "Multi Product Market Equilibrium with Sequential Search," FEP Working Papers 166, Universidade do Porto, Faculdade de Economia do Porto.
  7. Ana Poças & Elias Soukiazis, 2013. "Explaining the interrelations between health, education and standards of living in Portugal. A simultaneous equation approach," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 9(3), pages 167-187.
  8. Sandra Silva, 2009. "On evolutionary technological change and economic growth: Lakatos as a starting point for appraisal," Journal of Evolutionary Economics, Springer, vol. 19(1), pages 111-135, February.
  9. Filipe J. Sousa & Luis M. de Castro, 2004. "The strategic relevance of business relationships: a preliminary assessment," FEP Working Papers 163, Universidade do Porto, Faculdade de Economia do Porto.
  10. Egbetokun, A & Siyanbola, W & Sanni, M & Olamade, O & Adeniyi, A & Irefin, I, 2008. "What Drives Innovation?: Inferences from an Industry-Wide Survey in Nigeria," MPRA Paper 25343, University Library of Munich, Germany, revised 2008.
  11. Aurora A.C. Teixeira & Natércia Fortuna, 2006. "Human capital, trade and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," FEP Working Papers 226, Universidade do Porto, Faculdade de Economia do Porto.
  12. Andreia Cardoso & Aurora A.C. Teixeira, 2009. "Returns on R&D investment: A comprehensive survey on the magnitude and evaluation methodologies," UITT Working Papers 2009-03-wp1, INESC Porto, Unidade de Inovação e Transferência de Tecnologia(UITT).
  13. Ester Gomes da Silva, 2009. "Capital services estimates in Portuguese industries, 1977-2003," FEP Working Papers 313, Universidade do Porto, Faculdade de Economia do Porto.
  14. Jorge M. S. Valente, 2004. "Local and global dominance conditions for the weighted earliness scheduling problem with no idle time," FEP Working Papers 156, Universidade do Porto, Faculdade de Economia do Porto.
  15. Rosa Forte, 2004. "The relationship between foreign direct investment and international trade. Substitution or complementarity? A survey," FEP Working Papers 140, Universidade do Porto, Faculdade de Economia do Porto.
  16. Rui Henrique Alves, 2004. "Europe: Looking for a New Model," FEP Working Papers 154, Universidade do Porto, Faculdade de Economia do Porto.
  17. Mário Rui Silva & Hermano Rodrigues, 2005. "Public-Private Partnerships and the Promotion of Collective Entrepreneurship," FEP Working Papers 172, Universidade do Porto, Faculdade de Economia do Porto.
  18. Cristina Barbot, 2004. "Low cost carriers, secondary airports and State aid: an economic assessment of the Charleroi affair," FEP Working Papers 159, Universidade do Porto, Faculdade de Economia do Porto.
  19. Pedro Cosme Costa Vieira, 2005. "The importance in the papers' impact of the number of pages and of co-authors - an empirical estimation with data from top ranking economic journals," FEP Working Papers 169, Universidade do Porto, Faculdade de Economia do Porto.

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