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Total Factor Productivity, Human Capital and Outward Orientation: Differences by Stage of Ddevelopment and Geographic Regions

Author

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  • Stephen M. Miller

    (University of Nevada and University of Connecticut)

  • Mukti P. Upadhyay

    (Eastern Illinois University)

Abstract

Do openness and human capital accumulation promote economic growth? While intuition argues yes, the existing empirical evidence provides mixed support for such assertions. We examine Cobb-Douglas production function specifications for a 30-year panel of 83 countries representing all regions of the world and all income groups. We estimate and compare labor and capital elasticities of output per worker across each of several income and geographic groups, finding significant differences in production technology. Then we estimate the total factor productivity series for each classification. Using determinants of total factor productivity that include, among many others, human capital, openness, and distortion of domestic prices relative to world prices, we find significant differences in results between the overall sample and sub-samples of countries. In particular, a policy of outward orientation may or may not promote growth in specific country groups. even if geared to reducing price distortion and increasing openness. Human capital plays a smaller role in enhancing growth through total factor productivity.

Suggested Citation

  • Stephen M. Miller & Mukti P. Upadhyay, 2002. "Total Factor Productivity, Human Capital and Outward Orientation: Differences by Stage of Ddevelopment and Geographic Regions," Working papers 2002-33, University of Connecticut, Department of Economics.
  • Handle: RePEc:uct:uconnp:2002-33
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Verda Salman & Aliya H. Khan & Madeeha Gohar Qureshi, 2015. "Issues in Statistical Modelling of Human Capital and Economic Growth Nuxus: A Cross Country Analysis," PIDE-Working Papers 2015:126, Pakistan Institute of Development Economics.
    2. repec:cbu:jrnlec:y:2016:v:6:p:4-16 is not listed on IDEAS
    3. Kolasa, Marcin, 2005. "What drives productivity growth in the new EU member states? The case of Poland," Working Paper Series 486, European Central Bank.
    4. Heshmati, Almas & Rashidghalam, Masoomeh, 2016. "Estimation of Technical Change and TFP Growth Based on Observable Technology Shifters," IZA Discussion Papers 10448, Institute for the Study of Labor (IZA).
    5. Sarath Delpachitra & Pham Van Dai, 2012. "The Determinants of TFP Growth in Middle Income Economies in ASEAN: Implication of Financial Crises," International Journal of Business and Economics, College of Business and College of Finance, Feng Chia University, Taichung, Taiwan, vol. 11(1), pages 63-88, June.
    6. Ville Kaitila, 2016. "GDP growth in Russia: different capital stock series and the terms of trade," Post-Communist Economies, Taylor & Francis Journals, vol. 28(2), pages 129-145, April.
    7. Rodolfo Cermeño & Sirenia Várquez, 2005. "Technological Backwardness in Agriculture: Is It due to Lack of R&D Expenditures, Human Capital and Openness to International Trade?," DEGIT Conference Papers c010_014, DEGIT, Dynamics, Economic Growth, and International Trade.
    8. Mastromarco, Camilla & Ghosh, Sucharita, 2009. "Foreign Capital, Human Capital, and Efficiency: A Stochastic Frontier Analysis for Developing Countries," World Development, Elsevier, vol. 37(2), pages 489-502, February.
    9. González, Germán & Constantín, Sebastián, 2008. "Explaining TFP Growth rates: Dissimilar effect of openness between different income groups of countries," MPRA Paper 17584, University Library of Munich, Germany.

    More about this item

    Keywords

    productivity; openness; trade policy; growth;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • 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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