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Urbanization, human capital, and cross-country productivity differences

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  • Kumar, Alok
  • Kober, Brianne

Abstract

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.

Suggested Citation

  • Kumar, Alok & Kober, Brianne, 2012. "Urbanization, human capital, and cross-country productivity differences," Economics Letters, Elsevier, vol. 117(1), pages 14-17.
  • Handle: RePEc:eee:ecolet:v:117:y:2012:i:1:p:14-17
    DOI: 10.1016/j.econlet.2012.04.072
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    References listed on IDEAS

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    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    2. Gallup, J.L. & Sachs, J.D. & Mullinger, A., 1999. "Geography and Economic Development," Papers 1, Chicago - Graduate School of Business.
    3. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    4. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    5. Kana Fuse, 2010. "Variations in attitudinal gender preferences for children across 50 less-developed countries," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 23(36), pages 1031-1048, November.
    6. John Luke Gallup & Jeffrey D. Sachs & Andrew Mellinger, 1999. "Geography and Economic Development," CID Working Papers 1, Center for International Development at Harvard University.
    7. repec:hrv:faseco:30747160 is not listed on IDEAS
    8. Jeffrey D. Sachs, 2003. "Institutions Don't Rule: Direct Effects of Geography on Per Capita Income," NBER Working Papers 9490, National Bureau of Economic Research, Inc.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    10. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 1127-1170.
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    Citations

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    Cited by:

    1. Evgeniya, Gorlova, 2016. "TFP and Intelligence: a cross-national empirical evidence," MPRA Paper 69207, University Library of Munich, Germany.
    2. Yu, Nannan & Yu, Bo & de Jong, Martin & Storm, Servaas, 2015. "Does inequality in educational attainment matter for China's economic growth?," International Journal of Educational Development, Elsevier, vol. 41(C), pages 164-173.
    3. He, Ming & Chen, Yang & van Marrewijk, Charles, 2017. "Urban Transformation and Technology Spillovers: Evidence from China's Electric Apparatus Sector," RIEI Working Papers 2017-01, Xi'an Jiaotong-Liverpool University, Research Institute for Economic Integration.
    4. Sakiru Adebola Solarin & Yuen Yee Yen, 2016. "A global analysis of the impact of research output on economic growth," Scientometrics, Springer;Akadémiai Kiadó, vol. 108(2), pages 855-874, August.

    More about this item

    Keywords

    Augmented Solow growth model; TFP; Health; Education; Urbanization;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • N30 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - General, International, or Comparative
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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