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Integration brings convergence? The role of public and human capital

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  • Maria Jesus Delgado Rodriguez
  • Inmaculada Alvarez Ayuso

Abstract

This work decompose labor-productivity grotwh and convergence in EU into components attributable to technological change (shifts in the European production frontier), technological catch-up (movements toward or away from the frontier) and factor accumulation (movement toward or away from the frontier). This work extends previous researchs considering public capital and human capitas as additional productive inputs and analysing its separate constribution to convergence as components of factor accumulation. In the case of human capital, we also test its rate effect as determinant factor of technical change. With this purpose we applied the Malmquist index of total factor productivity to an European data base to provide evidence for the 15 EU State Members. The results show that growth is primarily driven by factor accumulation which contribution is fundamental for lagging countries. We do not find evidence of any significant convergence over the whole period studied related to integration with factor accumulation and efficiency change as important factors of convergence while technical change (encouraged by greater human capital) has worked against it. Key words: Human Capital, Malmquist Index, Source of Convergence. JEL Classification: O47 H54 D24

Suggested Citation

  • Maria Jesus Delgado Rodriguez & Inmaculada Alvarez Ayuso, 2004. "Integration brings convergence? The role of public and human capital," ERSA conference papers ersa04p164, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa04p164
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    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa04/PDF/164.pdf
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    References listed on IDEAS

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    1. Joaquin Maudos & Jose Manuel Pastor & Lorenzo Serrano, 2003. "Human capital in OECD countries: Technical change, efficiency and productivity," International Review of Applied Economics, Taylor & Francis Journals, vol. 17(4), pages 419-435.
    2. Jens Kaüger & Uwe Cantner & Horst Hanusch, 2000. "Total factor productivity, the east Asian miracle, and the world production frontier," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 136(1), pages 111-136, March.
    3. Henderson, Daniel & Russell, Robert, 2001. "Human Capital and Macroeconomic Convergence: A Production-Frontier Approach," Efficiency Series Papers 2001/07, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    4. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455, January.
    5. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, vol. 92(3), pages 527-548, June.
    6. Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
    7. Daniel J. Henderson & R. Robert Russell, 2005. "Human Capital And Convergence: A Production-Frontier Approach ," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(4), pages 1167-1205, November.
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    Cited by:

    1. Nabi, Mahmoud Sami & Ben Aissa, Safouane & Drine, Imed, 2008. "Ouverture financière et rattrapage technologique : Evidence empirique à partir du bassin méditerranéen [Financial Openness and Technological Catch-up: Empirical Evidence from the Mediterranean Basi," MPRA Paper 20637, University Library of Munich, Germany, revised Jul 2009.

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    More about this item

    Keywords

    human capital; malmquist index; source of convergence. jel classification: o47 h54 d24;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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