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The effect of human capital on the trade-growth nexus: A dynamic panel threshold analysis

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  • Gharsallah, Mariem
  • Trabelsi, Salwa

Abstract

This paper analyzes the nonlinear effect of trade openness on economic growth over a sample of developed and developing countries during the period 1980–2020. Using a Dynamic Panel Threshold Model advanced by Seo and Shin (2016), and Seo et al., (2019), the results prove the existence of a human capital's threshold level above it openness to trade has a positive effect on economic growth. More precisely, trade can enhance economic performance if the human capital is high, otherwise, the effect is negative.

Suggested Citation

  • Gharsallah, Mariem & Trabelsi, Salwa, 2024. "The effect of human capital on the trade-growth nexus: A dynamic panel threshold analysis," Research in Economics, Elsevier, vol. 78(4).
    • Handle: RePEc:eee:reecon:v:78:y:2024:i:4:s1090944324000528
    DOI: 10.1016/j.rie.2024.100988
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    More about this item

    Keywords

    Trade openness; Economic growth; Human capital; Dynamic panel threshold model;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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