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The interactive effect of trade and education on growth

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  • Celine Kauffmann

    (TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This empirical study consists of an econometric test of the complementary effect of trade and education on long run growth. The tests are performed using a mixed specification built on the Benhabib and Spiegel [7] model and include an estimator of trade openness. Regressions are run on a long term panel data base (100 years, 10 OECD countries) reconciling the two data sets of Maddison [26] and Banks [4]. The results strongly support the existence of an interaction between trade and education which appears to promote catch-up between countries. Moreover, using a structural change test, I also show that such an interaction is not constant but hinges on the level of GDP per capita already attained by the economy.

Suggested Citation

  • Celine Kauffmann, 2000. "The interactive effect of trade and education on growth," Post-Print halshs-03721622, HAL.
    • Handle: RePEc:hal:journl:halshs-03721622
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03721622
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