The role of human capital in economic development evidence from aggregate cross-country data

Using cross-country estimates of physical and human capital stocks, we run the growth accounting regressions implied by a Cobb-Douglas aggregate production function. Our results indicate that human capital enters insignificantly in explaining per capita growth rates. We next specify an alternative m...

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Bibliographic Details
Published in:Journal of monetary economics 1994-10, Vol.34 (2), p.143-173
Main Authors: Benhabib, Jess, Spiegel, Mark M.
Format: Article
Language:English
Subjects:
Economic development
Economic growth
Growth
Human capital
Human resources
Production functions
Regression analysis
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Summary:Using cross-country estimates of physical and human capital stocks, we run the growth accounting regressions implied by a Cobb-Douglas aggregate production function. Our results indicate that human capital enters insignificantly in explaining per capita growth rates. We next specify an alternative model in which the growth rate of total factor productivity depends on a nation's human capital stock level. Tests of this specification do indicate a positive role for human capital.
ISSN:0304-3932
1873-1295
DOI:10.1016/0304-3932(94)90047-7