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High-Tech Human Capital: Do The Richest Countries Invest the Most? (working-paper)

Author

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  • Tiago Neves Sequeira

    (Departamento de Gestão e Economia - Universidade da Beira Interior & Faculdade de Economia - Universidade Nova de Lisboa)

Abstract

Research and Development (R&D) endogenous growth models predict and most evidence show that investment in R&D increases with economic development. We consider the type of human capital mainly used in research labs and show that the richest countries are investing proportionally less than middle income countries in engineering and technical human capital. We generalize this result, controlling for other explanatory variables, cross-time error correlations, heteroskedasticity and endogeneity bias. Thus, we establish a stylized fact (about human capital composition) that is a puzzle to economic theory: the ratio of high-tech to low-tech human capital presents an inverted U-shaped relationship with GDP per capita.

Suggested Citation

  • Tiago Neves Sequeira, 2003. "High-Tech Human Capital: Do The Richest Countries Invest the Most? (working-paper)," Macroeconomics 0309020, EconWPA, revised 04 Oct 2003.
  • Handle: RePEc:wpa:wuwpma:0309020
    Note: Type of Document - pdf; prepared on IBM PC - PC-TEX; to print on HP/PostScript/Franciscan monk; pages: 14 ; figures: included. An improved article with this title has been published in "Topics in Macroeconomics", http://www.bepress.com/bejm/topics/vol3/iss1/art13
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    References listed on IDEAS

    as
    1. Funke, Michael & Strulik, Holger, 2000. "On endogenous growth with physical capital, human capital and product variety," European Economic Review, Elsevier, vol. 44(3), pages 491-515, March.
    2. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    3. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1991. "The Allocation of Talent: Implications for Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 503-530.
    4. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    5. Tavares, Jose & Wacziarg, Romain, 2001. "How democracy affects growth," European Economic Review, Elsevier, vol. 45(8), pages 1341-1378, August.
    6. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    7. Acemoglu, Daron, 2001. "Good Jobs versus Bad Jobs," Journal of Labor Economics, University of Chicago Press, vol. 19(1), pages 1-21, January.
    8. Robert J. Barro, 2001. "Human Capital and Growth," American Economic Review, American Economic Association, vol. 91(2), pages 12-17, May.
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    More about this item

    Keywords

    Human Capital Composition; High-Tech Human Capital; R&D; Development;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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