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Complementarity between human capital and trade in regional technological progress

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  • Serrano, Guadalupe
  • Lopez-Bazo, Enrique
  • Garcia-Sanchis, Jose Ramon

Abstract

The effect of openness and trade orientation on economic growth remains a highly contentious issue. Trade facilitates knowledge diffusion and the adoption of more advanced and efficient technologies which faster total factor productivity (TFP) growth and, hence, per capita income. New technologies that diffuse by trade require a sufficiently qualified labour force to adapt them into the domestic productive environment. Thus, openness and human capital accumulation will lead to TFP growth, and the larger the complementarity between both variables the higher TFP growth. The paper discusses the implications of these assumptions and tests their empirical validity using a pool of data for the industrial sector in the Spanish regions in a period in which both the stock of human capital and openness experienced a not able improvement. Key words: trade, human capital, technological progress and regions. JEL category: C23, D24, O33.

Suggested Citation

  • Serrano, Guadalupe & Lopez-Bazo, Enrique & Garcia-Sanchis, Jose Ramon, 2002. "Complementarity between human capital and trade in regional technological progress," ERSA conference papers ersa02p013, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa02p013
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    References listed on IDEAS

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    More about this item

    Keywords

     trade; human capital; technological progress and regions. jel category: c23; d24; o33.;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • F10 - International Economics - - Trade - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • 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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