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Human Capital and Macroeconomic Growth: Austria and Germany 1960-1997 - An Update

Author

Listed:
  • Koman, Reinhard

    (Institute for Advanced Studies, Vienna)

  • Marin, Dalia

    (University of Munich and CEPR)

Abstract

In an influential paper Mankiw, Romer, and Weil (1992) argue that the evidence on the international disparity in per-capita income levels and growth rates is consistent with a standard Solow model, once it has been augmented to include human capital as an accumulable factor. In a study on Austria and Germany we augment the Solow model to allow for the accumulation of human capital. Based on a perpetual inventory procedure we construct measures of human capital stocks. We find that the time series evidence on Austria and Germany is not consistent with a human-capital-augmented Solow model. Factor accumulation appears to be less (and not more) able to account for the cross-country growth performance of Austria and Germany when human capital accumulation is included. Our results indicate that differences in technology are a driving factor in understanding cross-country growth between these two neighboring countries with similar political and institutional background.

Suggested Citation

  • Koman, Reinhard & Marin, Dalia, 1999. "Human Capital and Macroeconomic Growth: Austria and Germany 1960-1997 - An Update," Economics Series 69, Institute for Advanced Studies.
  • Handle: RePEc:ihs:ihsesp:69
    as

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    File URL: http://www.ihs.ac.at/publications/eco/es-69.pdf
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    References listed on IDEAS

    as
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    3. Marin, Dalia, 1995. "Learning and Dynamic Comparative Advantage: Lessons from Austria's Post-war Pattern of Growth for Eastern Europe," CEPR Discussion Papers 1116, C.E.P.R. Discussion Papers.
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    More about this item

    Keywords

    Economic Growth; Total Factor Productivity; Human Capital; Technical Change; Growth Accounting;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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