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Human Capital, Innovation, and Productivity Growth: Tales from Latin America and Caribbean

  • Yoruk, Baris

Why have Latin American and Caribbean countries (LAC countries) not replicated Western economic success? We investigate the reasons behind the economic stagnation of LAC countries for the past four decades. We utilize a nonparametric Malmquist productivity index for relevant cross-country and over time productivity growth, technological change, and technical efficiency change comparisons. We document that productivity growth differences between LAC countries and Western countries can only partially be attributed to human capital differences. We argue that along with inefficient production, differences in civil, political, and economic policies and institutions are promising factors in explaining the long-run economic performance of LAC countries.

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File URL: http://mpra.ub.uni-muenchen.de/3667/1/MPRA_paper_3667.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3667.

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Date of creation: 15 May 2007
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Handle: RePEc:pra:mprapa:3667
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  1. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
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  7. Hendricks, Lutz A., 2002. "How Important is Human Capital for Development? Evidence from Immigrant Earnings," Staff General Research Papers 11409, Iowa State University, Department of Economics.
  8. Gong, Byeong-Ho & Sickles, Robin C., 1992. "Finite sample evidence on the performance of stochastic frontiers and data envelopment analysis using panel data," Journal of Econometrics, Elsevier, vol. 51(1-2), pages 259-284.
  9. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  10. Yoruk, BarIs K. & Zaim, Osman, 2005. "Productivity growth in OECD countries: A comparison with Malmquist indices," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 401-420, June.
  11. Pritchett, Lant, 1996. "Population growth, factor accumulation, and productivity," Policy Research Working Paper Series 1567, The World Bank.
  12. Maudos, Joaquin & Pastor, Jose Manuel & Serrano, Lorenzo, 1999. "Total factor productivity measurement and human capital in OECD countries," Economics Letters, Elsevier, vol. 63(1), pages 39-44, April.
  13. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
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  15. Islam, Nazrul, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, MIT Press, vol. 110(4), pages 1127-70, November.
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