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Convergence, Human Capital and International Spillovers

  • ERTUR, Cem


    (LEG - CNRS UMR 5118 - Université de Bourgogne)

  • KOCH, Wilfried


    (LEG - CNRS UMR 5118 - Université de Bourgogne)

This paper develops a growth model with physical and human capital externalities to- gether with technological interdependence between economies. It leads to a spatial autore- gressive reduced form for the convergence equation characterized by parameter heterogeneity. A locally linear spatial autoregressive speci¯cation is then estimated providing a di(r)erent convergence speed estimate for each country in a sample of 89 countries over the period 1960-1995. Finally, counterfactual density estimates show that our model better ¯ts the observed income distribution than the well known augmented neoclassical growth model.

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Paper provided by LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne in its series LEG - Document de travail - Economie with number 2006-03.

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Length: 20 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:lat:legeco:2006-03
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