Human Capital, Technology Diffusion and Economic Growth in Low-to-Middle Income Country: A Time Series Perspective of Guatemala, 1950-2001
16 Pages Posted: 19 Aug 2008
Date Written: August 17, 2008
This paper investigates the impact of human capital on economic growth in Guatemala through the application of an error-correction methodology. Two channels are analyzed, by which human capital is expected to influence growth. A better-educated labor force appears to have a positive and significant impact on economic growth both via factor accumulation as well as on the evolution of total factor productivity. The results have been found robust concerning data issues and parameter stability.
Keywords: Education, Growth, Econometrics, Guatemala
JEL Classification: C22, C51, I20, O54
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