IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa11p1016.html
   My bibliography  Save this paper

The Non-linearity of the Relationship between Human Capital and Exports in Brazil – evidences of regional differences

Author

Listed:
  • Gilberto Fraga
  • Carlos Bacha

    ()

Abstract

The study of Brazilian export determinants is a very important issue to policy-markers, principally when the export determinants are different among the Brazilian states or regions. Human capital (measured by the average level of employee formal schooling) has been one of these determinants and this paper, basing on Dixit and Woodland (1982) model, aims to evaluate the role played by human capital in the evolution of Brazilian states exports from 1995 to 2006, highlighting the differences among Brazilian states and/or regions. The empirical analysis is implemented by running regression of the data organized into a panel and considering the fixed effects (i.e., the amenities) among the 27 Brazilian states. The findings are consistent with the selected theoretical model and suggest that human capital has a non-linear effect on exports. The latter suggests the continuous improvement in the worker skill should not be neglected by public policies aimed at increasing the foreign trade of Brazilian states, but the unique characteristics of these states must be taken into account.

Suggested Citation

  • Gilberto Fraga & Carlos Bacha, 2011. "The Non-linearity of the Relationship between Human Capital and Exports in Brazil – evidences of regional differences," ERSA conference papers ersa11p1016, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa11p1016
    as

    Download full text from publisher

    File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal01016.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Corvers, Frank & de Grip, Andries, 1997. "Explaining trade in industrialized countries by country-specific human capital endowments," Economic Modelling, Elsevier, vol. 14(3), pages 395-416, July.
    2. Baltagi, Badi H. & Li, Qi, 1991. "A joint test for serial correlation and random individual effects," Statistics & Probability Letters, Elsevier, pages 277-280.
    3. A. D. Woodland, 1980. "Direct and Indirect Trade Utility Functions," Review of Economic Studies, Oxford University Press, vol. 47(5), pages 907-926.
    4. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
    5. Chuang, Yih-chyi, 2000. "Human Capital, Exports, and Economic Growth: A Causality Analysis for Taiwan, 1952-1995," Review of International Economics, Wiley Blackwell, vol. 8(4), pages 712-720, November.
    6. Dixit, Avinash & Woodland, Alan, 1982. "The relationship between factor endowments and commodity trade," Journal of International Economics, Elsevier, pages 201-214.
    7. Baltagi, Badi H. & Li, Qi, 1995. "Testing AR(1) against MA(1) disturbances in an error component model," Journal of Econometrics, Elsevier, vol. 68(1), pages 133-151, July.
    8. Courakis, Anthony S, 1991. "Labour Skills and Human Capital in the Explanation of Trade Patterns," Oxford Economic Papers, Oxford University Press, vol. 43(3), pages 443-462, July.
    9. David M. Drukker, 2003. "Testing for serial correlation in linear panel-data models," Stata Journal, StataCorp LP, vol. 3(2), pages 168-177, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p1016. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier). General contact details of provider: http://www.ersa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.