Corruption and Growth

Can environmental innovation facilitate carbon emissions reduction? Evidence from China

A review of the measures of the stock of human capital used in empiricalgrowth research - including adult literacy rates, school enrollmentratios, and average years of schooling of the working-age population -reveals that human capital is mostly poorly proxied. The simple use ofthe most common proxy, average years of schooling, misspecifies therelationship between education and the stock of human capital. Based onhuman capital theory, the specification of human capital is extended toallow for decreasing returns to education and for differences in thequality of a year of education. The different specifications give riseto hugely differing measures of the stock of human capital acrosscountries, and development-accounting results show that misspecifiedhuman capital measures can lead to severe underestimation of thedevelopment effect of human capital.

Specifying human capital

Latin American economic development has been perceived as a puzzle. The region has trailed most other world regions over the past half century despite relatively high initial development and school attainment levels. This puzzle, however, can be resolved by considering educational achievement, a direct measure of human capital. We introduce a new, more inclusive achievement measure that comes from splicing regional achievement tests into worldwide tests. In growth regressions, the positive growth effect of educational achievement fully accounts for the poor growth performance of Latin American countries. These results are confirmed in a number of instrumental-variable specifications that exploit plausibly exogenous achievement variation stemming from historical and institutional determinants of educational achievement. Finally, a development accounting analysis finds that, once educational achievement is included, human capital can account for between half and two thirds of the income differences between Latin America and the rest of the world.

Schooling, educational achievement, and the Latin American growth puzzle

This study aims to analyze the effects of natural resources, human capital, financial development, industrialization, technological progress, and international trade on the economic growth of the Next Eleven countries between 1990 and 2019. The novelty of this study lies in its approach to explore the indirect economic growth impacts of human capital development via the transmission channel of the natural resource utilization in these counties. The econometric methods involved are robust for accounting the cross-sectional dependence and slope heterogeneity concerns in the data. The results authenticate the resource curse hypothesis since higher natural resources rent are found to inhibit economic growth of the Next Eleven nations. In contrast, human capital development, financial development, industrialization, technological innovation and international trade participation are found to synthesize economic growth. Besides, another interesting finding in this study shows that human capital and natural resources jointly exert positive impacts on economic growth. Hence, it can be said that human capital development assists to mitigate the resource curse impacts in the case of the Next Eleven countries. Therefore, these findings necessitate the pertinence of boosting investments in human capital development, enhancing the strength of the financial sector, expediting industrialization, facilitating technological innovation, and amplifying international trade volumes for achieving higher economic growth in the Next Eleven countries. More importantly, human capital development should be prioritized for transforming the curse of the natural resources into blessing for these nations.

Do natural resources abundance and human capital development promote economic growth? A study on the resource curse hypothesis in Next Eleven countries

Economic growth, human capital and structural change: A dynamic panel data analysis

Human capital is identified as one of the main determinants of economic growth and plays an important role in the technological progress of countries. Nevertheless, existing studies have to some extent neglected the importance of human capital on growth via the interaction it can have with a country’s industrial specialization. Additionally, the emphasis is mainly placed on supply-side determinants, being demand-side factors quite neglected, particularly the relevance of the processes of structural change. Thus, using a growth model which integrates variables from both the supply side and demand side, we assess the direct and indirect effects of human capital on economic growth, including in the latter the interaction of human capital with the industrial specialization of countries. Based on econometric panel data estimations involving a set of OCDE countries over 1960-2011, we found that the countries’ productive specialization dynamics is a crucial factor for economic growth. It is also shown that the interaction between human capital and structural change towards high knowledge-intensive industries impacts on the economic growth. However, the sign of this effect depends on the type of country and length of the period of analysis. Specifically, in the long term and in developed countries, where knowledge-intensive industries already account for a great share of the economy, the impact of the interaction between human capital and structural change is positive. In the case of less developed countries, and considering a shorter time period, the effect of human capital via specialization in high-tech and knowledge-intensive activities emerged as negative.

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Economic growth, human capital and structural change: an empirical analysis

iv Indice de Conteudos v Indice de Quadros vi Indice de Figuras vii Introducao 1 Capitulo 1. Revisao de literatura sobre os determinantes do crescimento economico ......... 3 1.1. O stock de Capital Humano 3 1.2. Mudanca na estrutura produtiva 6 1.3. Interacao entre capital humano e estrutura produtiva 10 1.4. Outros determinantes do crescimento economico 13 1.4.1. PIB per capita inicial 13 1.4.2. Crescimento da populacao 13 1.4.3.Acumulacao de stock de capital fisico 14 1.4.4. Peso do setor publico na economia 14 1.4.5. Instituicoes 15 Capitulo 2. Metodologia 17 2.1. Especificacao econometrica e a opcao por estimacao de dados em painel 17 2.2. Descricao das proxies e fontes dos dados 18 2.3. Breve analise descritiva das variaveis relevantes 23 2.3.1. Evolucao dos niveis de PIB per capita 23 2.3.2.Evolucao do stock de Capital Humano 28 2.3.3.Evolucao da Especializacao Produtiva (Mudanca Estrutural) 34 Capitulo 3. Resultados empiricos 40 3.1. Consideracoes introdutorias 40 3.2. Resultados empiricos 41 Conclusoes 47 Referencias 49 Anexo 55

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Anabela Sofia da Silva Queirós

Papers

Economic growth, human capital and structural change: A dynamic panel data analysis

Economic growth, human capital and structural change: an empirical analysis

Crescimento económico, capital humano e especialização produtiva: uma análise empírica