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Technological Leadership, Human Capital and Economic Growth: A Spatial Econometric Analysis for U.S. Counties, 1969-2003

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Listed:
  • Valerien Pede

    ()

  • Raymond Florax

    () (Department of Agricultural Economics, College of Agriculture, Purdue University)

  • Henri de Groot

    () (Department of Spatial Economnics, Frije Universiteit, The Netherlands)

Abstract

The traditional view of cities as monocentric conglomerates of people clustered around an employment center, driving economic growth in cities that subsequently trickles down to the hinterland, is increasingly being challenged. In particular, the role of space, technological leadership, human capital, increasing returns to scale and industrial clustering as well as hierarchical organization principles have been emphasized in the more recent literature. This paper utilizes exploratory and spatial econometric data analysis techniques to investigate these issues for U.S. counties using data from 1969 through 2003. Ultimately, contiguous and hierarchical organization and interaction patterns are captured using an endogenous growth model allowing for spatial effects, inspired by earlier work on human capital and technology gaps. We investigate a neoclassical growth model and compare it to a spatial version of an endogenous growth model allowing for “domestic” investment in human capital and catch-up to the technology leader, and find that human capital strongly contributes to growth in a neoclassical setting, but much less so in an endogenous setting. In the endogenous model the catch-up term dominates in comparison to “domestic” human capital effects.

Suggested Citation

  • Valerien Pede & Raymond Florax & Henri de Groot, 2006. "Technological Leadership, Human Capital and Economic Growth: A Spatial Econometric Analysis for U.S. Counties, 1969-2003," Working Papers 06-09, Purdue University, College of Agriculture, Department of Agricultural Economics.
  • Handle: RePEc:pae:wpaper:06-09
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    Keywords

    economic growth; human capital; technological leadership;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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