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Does Human Capital Stimulate Investment In Physical Capital? Evidence From A Cost System Framework

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  • Enrique Lopez-Bazo

    () (Faculty of Economics, University of Barcelona)

  • Rosina Moreno

    () (Faculty of Economics, University of Barcelona)

Abstract

The direct effect of human capital on economic growth has been widely analysed in the economic literature. This paper, however, focuses on its indirect effect as a stimulus for private investment in physical capital. The methodological framework used is the duality theory, estimating a cost system aggregated with human capital. Empirical evidence is given for Spain for the period 1980-2000. We provide evidence on the indirect effect of human capital in making private capital investment more attractive. Among the main explanations for this process, we observe that higher worker skill levels enable higher returns to be extracted from investment in physical capital.

Suggested Citation

  • Enrique Lopez-Bazo & Rosina Moreno, 2007. "Does Human Capital Stimulate Investment In Physical Capital? Evidence From A Cost System Framework," IREA Working Papers 200717, University of Barcelona, Research Institute of Applied Economics, revised Dec 2007.
  • Handle: RePEc:ira:wpaper:200717
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Manca, Fabio, 2011. "Education, Catch-up and Growth in Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 20, pages 5-28.
    2. Catarina Moura e Sa Cardoso & Geetha Ravishankar, 2015. "Productivity growth and convergence: a stochastic frontier analysis," Journal of Economic Studies, Emerald Group Publishing, vol. 42(2), pages 224-236, May.
    3. Strauss, Jack, 2013. "The Economic Gains to Colorado of Amendment 66," MPRA Paper 49928, University Library of Munich, Germany.
    4. Juan Luis Jiménez & Jordi Perdiguero & Ancor Suárez, 2011. "Debating as a classroom tool for adapting learning outcomes to the European higher education area," IREA Working Papers 201109, University of Barcelona, Research Institute of Applied Economics, revised Jun 2011.
    5. Enrique López-Bazo & Burhan Can Karahasan, 2011. "The Spatial Distribution of Human Capital: Can It Really Be Explained by Regional Differences in Market Access?," ERSA conference papers ersa11p1122, European Regional Science Association.
    6. Lluís Bermúdez & Antoni Ferri & Montse Guillén, 2011. "A correlation sensitivity analysis of non-life underwriting risk in solvency capital requirement estimation," IREA Working Papers 201113, University of Barcelona, Research Institute of Applied Economics, revised Sep 2011.
    7. repec:eee:ecmode:v:65:y:2017:i:c:p:119-128 is not listed on IDEAS
    8. David Castells-Quintana & Vicente Royuela, 2014. "Agglomeration, inequality and economic growth," The Annals of Regional Science, Springer;Western Regional Science Association, pages 343-366.
    9. repec:trp:01jefa:jefa0025 is not listed on IDEAS
    10. Zafer Pirim & William A. Owings & Leslie S. Kaplan, 2014. "The Long-Term Impact of Educational and Health Spending on Unemployment Rates," European Journal of Economic and Political Studies, Fatih University, vol. 7(1), pages 49-69.
    11. Jean-Guy LORANGER & Gérard BOISMENU, "undated". "A Dynamic Institutional Analysis with a Macroeconomic Model," EcoMod2010 259600107, EcoMod.
    12. David Castells-Quintana & Vicente Royuela, 2014. "Agglomeration, inequality and economic growth," The Annals of Regional Science, Springer;Western Regional Science Association, pages 343-366.

    More about this item

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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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