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Social Ingredients and Conditional Convergence in the Study of Sectoral Growth

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  • Jacques Kibambe

    ()
    (Department of Economics, University of Pretoria)

  • Renee van Eyden

    ()
    (Department of Economics, University of Pretoria)

  • charlotte du Toit

    ()
    (Department of Economics, University of Pretoria)

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    Abstract

    In this research article, we investigate the improved modelling ability and the outstanding policy advocacy of infusing health and education in sectoral growth equations of the South African economy. Our findings not only include improved and dependable modelling results but also provide distinct estimates of the returns on investment in health and education per sector using Iterative Seemingly Unrelated Regressions techniques. Additionally, this paper provides a theoretical description of the productivity effects of HIV/AIDS using sectoral equations. Also, this research investigates the diffusion process in the technological progress at the South African sectoral level and its impact on the study of social ingredients. Using a fixed effects model, some features of the diffusion process are explained.

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    File URL: http://www.econrsa.org/papers/w_papers/wp151.pdf
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    Bibliographic Info

    Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200931.

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    Length: 17 pages
    Date of creation: Oct 2009
    Date of revision:
    Handle: RePEc:pre:wpaper:200931

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    Keywords: Coefficient of effectiveness; Diffusion process; Fixed effects model; Seemingly Unrelated Regressions;

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    1. Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2003. "The Quantity and Quality of Life and the Evolution of World Inequality," NBER Working Papers 9765, National Bureau of Economic Research, Inc.
    2. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
    3. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December.
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