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Economic Reforms, Human Capital, And Economic Growth In India And South Korea: A Cointegration Analysis

Author

Listed:
  • Svitlana Maksymenko

    () (Department of Economics, University of Pittsburgh)

  • Mahbub Rabbani

    () (Economic Consulting Miliman Inc.)

Abstract

By employing a multivariate time series model, this study advances theoretical and empirical research on the role of economic reforms and human capital accumulation in the post-reform economic growth. We construct two indexes £­a human capital index and a composite economic reform index£­ and perform a cointegration analysis of a long-run equilibrium growth path in India and South Korea twelve years after the implementation of reform. The significant positive effect of human capital accumulation is revealed in both India and South Korea. The impact of economic reforms is found to be heterogeneous across countries: the effect is positive, significant, and sizable in South Korea, while it is negative and relatively small in India. This result is suggestive of different degrees of efficiency of reform measures implementation in two countries.

Suggested Citation

  • Svitlana Maksymenko & Mahbub Rabbani, 2011. "Economic Reforms, Human Capital, And Economic Growth In India And South Korea: A Cointegration Analysis," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(2), pages 39-59, June.
  • Handle: RePEc:jed:journl:v:36:y:2011:i:2:p:39-59
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Diana Loubaki, 2012. "On The Mechanics Of The Brain-Drain Reduction In Poorest Developing Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(3), pages 75-106, September.
    2. Haradhan Kumar Mohajan, 2011. "The NNP and Sustainability in Open Economy: Highlights on Recent World Economy and on Open Economy of Bangladesh," KASBIT Business Journals, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 32-47, December.
    3. Indunil De Silva & Sudarno Sumarto, 2015. "Dynamics Of Growth, Poverty And Human Capital: Evidence From Indonesian Sub-National Data," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(2), pages 1-33, June.
    4. Majid Karimzadeh & Behzad Karimzadeh, 2013. "Impact of Trade and Human Capital on Economic Growth of India: An Empirical Analysis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 16(48), pages 201-214, June.
    5. Awel, Ahmed Mohammed, 2013. "The long-run Relationship between Human Capital and Economic Growth in Sweden," MPRA Paper 45183, University Library of Munich, Germany.
    6. Jude Eggoh & Hilaire Houeninvo & Gilles-Armand Sossou, 2015. "Education, Health And Economic Growth In African Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 93-111, March.

    More about this item

    Keywords

    Economic Growth; Human Capital; Economic Reforms; India; South Korea;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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