IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.40year2006issue1pp153-179.html
   My bibliography  Save this article

Human capital and growth empirics

Author

Listed:
  • Chandra Shekhar Kumar*

    (Cornell University, USA)

Abstract

In this paper I attempt to understand the empirics of human capital (schooling attainment here) and economic growth under the framework of neoclassical growth model and later endogenizing the technological progress as a function of stock value of human capital. Various econometric methodologies have been used to overcome estimation problems involved here - such as omitted variable bias, endogeneity of independent variables, and weak instruments problem. I used panel data method, Difference GMM method, and System GMM method respectively to overcome the above problems. In all the above estimation methodologies, the positive and significant effect of human capital is not observed. The paper concludes with the observations that significance of human capital may be understated, because of (i) inappropriate specification of human capital production function, (ii) inappropriate estimation methodologies, (iii) not controlling for variables related to governance, institutions, etc. Hence further research works on these points may help in appropriately estimating the significance of human capital in growth empirics.

Suggested Citation

  • Chandra Shekhar Kumar*, 2006. "Human capital and growth empirics," Journal of Developing Areas, Tennessee State University, College of Business, vol. 40(1), pages 153-179, September.
    • Handle: RePEc:jda:journl:vol.40:year:2006:issue1:pp:153-179
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/jda/summary/v040/40.1kumar.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdul Wahab, Abdul Azeez Oluwanisola & Kefeli, Zurina & Hashim, Nurhazirah, 2018. "Investigating The Dynamic Effect of Healthcare Expenditure and Education Expenditure On Economic Growth in Organisation of Islamic Countries (OIC)," MPRA Paper 90338, University Library of Munich, Germany, revised 19 Oct 2018.
    2. Merna Mohamed Esmat Hefnawi & Hebatallah Ghoneim, 2020. "Human Capital and Economic Growth in Egypt," Proceedings of Business and Management Conferences 10112451, International Institute of Social and Economic Sciences.
    3. Bethencourt, Carlos & Perera-Tallo, Fernando, 2020. "Human Capital, Economic Growth, and Public Expenditure," ADBI Working Papers 1066, Asian Development Bank Institute.
    4. M. Emranul Haque, 2012. "Unproductive Education in a Model of Corruption and Growth," Centre for Growth and Business Cycle Research Discussion Paper Series 178, Economics, The University of Manchester.
    5. Faiza A. Khan, 2014. "Economic Convergence in the African Continent: Closing the Gap," South African Journal of Economics, Economic Society of South Africa, vol. 82(3), pages 354-370, September.
    6. Glawe, Linda & Wagner, Helmut, 2022. "Is schooling the same as learning? – The impact of the learning-adjusted years of schooling on growth in a dynamic panel data framework," World Development, Elsevier, vol. 151(C).
    7. M. Emranul Haque & Babar Hussain, 2013. "Unproductive Education in a Model of Corruption and Growth," Centre for Growth and Business Cycle Research Discussion Paper Series 179, Economics, The University of Manchester.

    More about this item

    Keywords

    Human Capital; Economic Growth; Fixed Effect; GMM;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jda:journl:vol.40:year:2006:issue1:pp:153-179. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.