Topic
Capital deepening
About: Capital deepening is a research topic. Over the lifetime, 5203 publications have been published within this topic receiving 230297 citations.
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TL;DR: This article examined the major determinants of economic development, including supplyside factors (technical progress and accumulation of physical and human capital) and demand side factors (government involvement and export expansion) and investigated the role of human capital, measured by education attainment, in driving output growth and enlarging the labor income share.
35 citations
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TL;DR: In this paper, the authors analyzed the steady state, transition dynamics, and endogenous growth properties of the human capital system and proposed an optimal investment in hierarchical human capital as well as non-hierarchical physical capital.
Abstract: Advanced human capital requires "basic" human capital as an input. Physical capital does not, in general, have such hierarchical structure. This paper models optimal investment in hierarchical human capital as well as nonhierarchical physical capital. The authors analyze the steady state, transition dynamics, and endogenous growth properties of the system. The optimal program exhibits non-monotonicities in human capital stocks. This result has important implications for the optimal timing of investment in hierarchical human capital. The analysis also addresses the debate regarding the distribution of education expenditures and the divergence between ex-post and ex-ante rates of return to education.
35 citations
Posted Content•
TL;DR: In this article, the authors describe some of the ways in which mineral rents and their management influence economic growth and other determinants of growth as well as some reasons why many mineral-rich countries have not managed very well to divert their resource rents to furthering economic and social development - that is, why natural capital tends to crowd out human, social, financial and real capital.
Abstract: This paper describes some of the ways in which mineral rents and their management influence economic growth and other determinants of growth as well as some of the reasons why many mineral-rich countries have not managed very well to divert their resource rents to furthering economic and social development - that is, why natural capital tends to crowd out human, social, financial and real capital. The empirical evidence of these linkages is presented in two rounds. First, we allow World Bank data covering 164 countries in 1960-2000 to speak for themselves through a sequence of bilateral correlations that suggest an inverse relationship between natural resource dependence and growth via human capital. We then repeat the exercise for two aspects of social capital, corruption and democracy, suggesting an additional adverse effect of natural resource dependence via social capital on growth. In the second round, we test for the robustness of natural resource dependence as a determinant of long-run growth by estimating a series of growth regressions for the same 164 countries.
35 citations
TL;DR: In this paper, the authors estimate standard production functions with a new cross-country data set on business sector production, wages and R&D investment for a selection of 14 OECD countries including the US.
Abstract: We estimate standard production functions with a new cross-country data set on business sector production, wages and R&D investment for a selection of 14 OECD countries including the US. The data sample covers years the 1960–2004. The data suggest that growth differences can largely be explained by capital deepening and the ability to produce new technology in the form of new patents. We also find strong evidence of complementarity between patents and openness of the economy, but little evidence of increasing elasticity of substitution over time.
35 citations
TL;DR: In this paper, the authors provide a rigorous proof of their Proposition 1, which characterizes the model's long-run growth equilibrium, and propose an endogenous growth model with physical capital, human capital and R&D.
35 citations