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The interactive effect of trade and education on growth

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  • Céline Kauffmann

    (TEAM - Université Paris 1, CNRS)

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

  • Céline Kauffmann, 2000. "The interactive effect of trade and education on growth," Cahiers de la Maison des Sciences Economiques bla00022, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:mse:wpsorb:bla00022
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    More about this item

    Keywords

    Growth regressions; long run economic growth; interaction between human capital and trade openness; panel data estimations;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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