Human Capital, the Structure of Production, and Growth
61 Pages Posted: 22 May 2006
Date Written: May 2006
Do high levels of human capital foster economic growth by facilitating technology adoption? If so, countries with more human capital should have adopted more rapidly the skilled-labor augmenting technologies becoming available since the 1970's. High human capital levels should therefore have translated into fast growth in more compared to less human-capital-intensive industries in the 1980's. Theories of international specialization point to human capital accumulation as another important determinant of growth in human-capital-intensive industries. Using data for a large sample of countries, we find significant positive effects of human capital levels and human capital accumulation on output and employment growth in human-capital-intensive industries.
Keywords: Human capital, growth, structure of production
JEL Classification: E13, F11, O11
Suggested Citation: Suggested Citation