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Human Capital and Economic Growth: Evidence from Developing Countries

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  • Hrishikesh D. Vinod
  • Surendra K. Kaushik

Abstract

Human capital in the form of education has been used to explain GDP growth in augmented Solow models. A statistically significant coefficient for human capital variable in these models was recently reported for OECD countries using recent data. We use time series and panel regressions for data on a group of eighteen large developing countries for the period 1982–2001. This study confirms and extends results by OECD and other similar studies. Since most of our models have a significant human capital regressor in such a study of developing countries, results in this paper are important for policy regarding expanded educational opportunities, increased emphasis, and focus on education and technology in developing countries.

Suggested Citation

  • Hrishikesh D. Vinod & Surendra K. Kaushik, 2007. "Human Capital and Economic Growth: Evidence from Developing Countries," The American Economist, Sage Publications, vol. 51(1), pages 29-39, March.
    • Handle: RePEc:sae:amerec:v:51:y:2007:i:1:p:29-39
    DOI: 10.1177/056943450705100103
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    6. Richard Vogel & W. Hubert Keen, 2010. "Public Higher Education and New York State’s Economy," Economic Development Quarterly, , vol. 24(4), pages 384-393, November.
    7. Biswajit Maitra, 2018. "Investment in Physical, Human Capital, Economic Growth and Life Expectancy in Bangladesh," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 19(2), pages 251-269, September.
    8. Machado E Silva, Isabela Morbach & Medeiros Costa, Hirdan Katarina de, 2019. "Brazilian Social Funds: The lessons learned from the Norway fund experience," Energy Policy, Elsevier, vol. 129(C), pages 161-167.
    9. Costa, Hirdan Katarina de Medeiros & Santos, Edmilson Moutinho dos, 2013. "Institutional analysis and the “resource curse” in developing countries," Energy Policy, Elsevier, vol. 63(C), pages 788-795.
    10. V. Chandran Govindaraju & Ramesh Rao & Sajid Anwar, 2011. "Economic growth and government spending in Malaysia: a re-examination of Wagner and Keynesian views," Economic Change and Restructuring, Springer, vol. 44(3), pages 203-219, August.
    11. Tan, Qijia & Li, Cuilan & Qin, Zhaohui & Yu, Siming & Pan, Yuchen & Andrianarimanana, Mihasina Harinaivo, 2023. "Impact of fiscal education expenditure on innovation of local listed enterprises: Evidence from China," Finance Research Letters, Elsevier, vol. 57(C).
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    13. Cavusoglu, Nevin, 2012. "LISREL growth model on direct and indirect effects using cross-country data," Economic Modelling, Elsevier, vol. 29(6), pages 2362-2370.

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