Urbanization, human capital, and cross-country productivity differences
In this paper, we empirically examine the effects of health, education, and urbanization on the total factor productivity (TFP) of a large number of countries. We find that both urbanization and health indicators (life expectancy, infant mortality rate, and the risk of malaria) significantly affect TFP. Education has an insignificant effect on TFP. Coefficients of indicators of health and urbanization remain highly significant even after controlling for endogeneity.
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