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Human capital, technological progress and technology diffusion across Europe: education matters

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  • Tinatin Akhvlediani

    (CEPS)

  • Andrzej Cieślik

    (University of Warsaw)

Abstract

The paper examines the impact of human capital on the growth of total factor productivity in European countries. Using the modified Nelson–Phelps framework, we estimate regressions based on panel data for the period 1950–2014, measured as 5-year averages. The GMM estimates show the positive and statistically significant effects of human capital on technological progress and diffusion. However, the results do not favour the convergence of all countries in the sample to the technological frontier. In addition to countries that are not yet members of the European Union (EU), our estimates suggest that peripheral EU countries have a weak convergence rate due to insufficient investment in human capital.

Suggested Citation

  • Tinatin Akhvlediani & Andrzej Cieślik, 2020. "Human capital, technological progress and technology diffusion across Europe: education matters," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(3), pages 475-493, August.
    • Handle: RePEc:kap:empiri:v:47:y:2020:i:3:d:10.1007_s10663-019-09468-z
    DOI: 10.1007/s10663-019-09468-z
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    4. Cieślik, Andrzej & Wciślik, Dominika Róża, 2020. "Convergence among the CEE-8 economies and their catch-up towards the EU-15," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 39-48.

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    More about this item

    Keywords

    Human capital; Total factor productivity; Technological progress; Technology diffusion; Education; Europe;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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