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Imported Equipment, Human Capital and Economic Growth in Developing Countries

  • Uwe Dulleck

    ()

  • Neil Foster

    ()

De Long and Summers (1991) began a literature examining the impact of equipment investment on growth. In this paper we examine such a relationship for developing countries by considering imports of equipment from advanced countries as our measure of equipment investment for a sample of 55 developing countries. We examine whether the level of human capital in a country affects its ability to benefit from such investment. We find a complex interrelationship between imported equipment and human capital. Generally, the relationship between imported equipment and growth is lowest, and often negative, for countries with low levels of human capital, highest for countries within an intermediate range and somewhat in between for countries with the highest level of human capital.

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File URL: http://www.ncer.edu.au/papers/documents/WpNo16May07.pdf
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Paper provided by National Centre for Econometric Research in its series NCER Working Paper Series with number 16.

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Length: 47 pages
Date of creation: 25 May 2007
Date of revision:
Handle: RePEc:qut:auncer:2007-91
Contact details of provider: Phone: 07 3138 5066
Fax: 07 3138 1500
Web page: http://www.ncer.edu.au

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