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Imported Equipment, Human Capital and Economic Growth in Developing Countries

Author

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  • Dulleck, Uwe
  • Foster, Neil

    (School of Economics and Finance, Faculty of Business, Queensland University of Technology GPO Box 2434, Brisbane, Queensland 4001, Australia.
    Department of Economics, The University of Vienna, Hohenstaufengasse 9, A-1010, Vienna, Austria.)

Abstract

That both equipment investment and human capital affect growth in developing countries is a well established fact in the empirical growth literature. Few studies have asked to what extent human capital and equipment investment are complements, with human capital affecting the ability of developing economies to make use of investment in capital goods. We study the effect of equipment investment on the growth of developing countries and the interrelationship between such investment and human capital. We find a complex interrelationship between equipment investment and human capital. Generally, the relationship between equipment investment and growth is lowest, and often negative, for countries with low levels of human capital, highest for countries within an intermediate range and somewhat in between for countries with the highest level of human capital.

Suggested Citation

  • Dulleck, Uwe & Foster, Neil, 2008. "Imported Equipment, Human Capital and Economic Growth in Developing Countries," Economic Analysis and Policy, Elsevier, vol. 38(2), pages 233-250, September.
  • Handle: RePEc:eee:ecanpo:v:38:y:2008:i:2:p:233-250
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    More about this item

    Keywords

    Capital Goods Imports; Human Capital; Developing Countries; Technology;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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