Effects of Human Capital and Openness on Economic Growth of Developed and Developing Countries: A Panel Data Analysis
Technology transfer by international trade and
foreign direct investment is the most important positive
outcome of open economy. It is widely accepted that new
technology and knowledge have an important role in
enhancing economic growth. Human capital is the other
important factor assisting economic growth. In this study, the
role of human capital in the growth process is examined in a
view of new endogenous growth theory emphasizing on the
technology transfer resulting from international trade. Using
the panel data of 10 developed and 10 developing countries,
impact of human capital and openness on the rate of economic
growth of different countries is analysed. Evidence suggests
the view that human capital and openness contribute to the
economic growth in both developing and developed countries,
but with different rates.
[1] R. Solow, ÔÇÿ-A contribution to the theory of economic growth,--
Quarterly Journal of Economics, Vol. 70, pp. 65-94, 1956.
[2] T. W. Swan, ÔÇÿ-Economic growth and capital accumulation,-- Economic
Record, Vol. 32, pp. 334-361, 1956.
[3] R. R. Nelson, ÔÇÿ-Research on productivity growth and productivity
differences: Dead ends and new departures,-- Journal of Economic
Literature, Vol. 19, pp. 1029-1064, 1981.
[4] K. J. Arrow, ÔÇÿ-The economic implications of learning by doing,ÔÇÿ-
Review of Economic Studies, Vol. 29, pp. 155-173, 1962.
[5] H. Uzawa, ÔÇÿ-Optimal technical change in an aggregative model of
economic growth,-- International Economic Review, Vol. 6, pp. 18-31,
1965.
[6] P. M. Romer, ÔÇÿ-Increasing returns and long-run growth,-- Journal of
Political Economy, Vol. 94, pp. 1002-1037, 1986.
[7] R. Lucas, ÔÇÿ-On the mechanics of economic development,-- Journal of
Monetary Economics, Vol. 22, pp. 3-42., 1988.
[8] D. Acemo─ƒlu, and F. Zilibotti, ÔÇÿ-Productivity differences,-- Quarterly
Journal of Economics, Vol. 116, pp. 563-606, 2001.
[9] D. Li, ÔÇÿ-The welfare effect of trade in the endogenous growth model,
The Canadian Journal of Economics, Vol.29, pp. 384-388.,1996.
[10] L. A. Rivera-Batiz and P. Romer, ÔÇÿ-Economic integration and
endogenous growth,-- Quarterly Journal of Economics, Vol. 106, pp.
531-555, 1991a.
[11] L. A. Rivera-Batiz and P. M. Romer, ÔÇÿ-International trade with
endogenous technological change,-- European Economic Review, Vol.
35, pp. 971-1001, 1991b.
[12] L. A. Rivera-Batiz and D. Xie, ÔÇÿ-Integration Among unequals,--
Regional Science and Urban Economics, Vol. 23, pp. 337-354, 1993.
[13] D. T. Coe, E. Helpman, and A. W. Hoffmaister, ÔÇÿ-North-South R&D
spillovers,-- The Economic Journal, Vol. 107, pp. 134-149, 1997.
[14] M. Abramovitz, ÔÇÿ-Catching-up, forging ahead, and falling behind,--
Journal of Economic History, Vol. 46, pp. 386-406, 1986.
[15] M. Abramovitz, ÔÇÿ-The search of the sources of growth: Areas of
ignorance, old and new,-- Journal of Economic History, Vol. 53, pp.
217-243, 1993.
[16] R. R. Nelson, and G. Wright, ÔÇÿ-The rise and fall of American
technological leadership: The postwar era in historical perspective, ÔÇÿ-
Journal of Economic Literature, Vol. 30, pp. 1931-1964, 1992.
[17] P. M. Romer, ÔÇÿ-Endogenous technological change,-- Journal of Political
Economy, Vol. 98, pp.71-102, 1990.
[18] G. M. Grossman, and E. Helpman, ÔÇÿ-Trade, knowledge spillovers, and
growth, European economic review,-- Vol. 35, pp. 517-526, 1991.
http://dss.princeton.edu/online_help/analysis/panel.htm
[19] R. B. Bhaskara, ÔÇÿ-Time series econometrics of growth models: a guide
for applied economists (unpublished work style)--,2006 , unpublished.
[20] M. Eller, P. R. Haiss, K. Steiner, ÔÇÿ-Foreign direct investment in the
financial sector: the engine of growth for Central and Eastern Europe,--
Europainstitut Working Papers No. 69, pp. 25, 2005.
[21] B. H. Baltagi, Econometric analysis of panel data (Book style). John
Wiley & Sons Ltd, New York, 1995.
[22] J. H. Stock and M. H. Watson, Introduction to econometrics (Book
style). 2003.
[1] R. Solow, ÔÇÿ-A contribution to the theory of economic growth,--
Quarterly Journal of Economics, Vol. 70, pp. 65-94, 1956.
[2] T. W. Swan, ÔÇÿ-Economic growth and capital accumulation,-- Economic
Record, Vol. 32, pp. 334-361, 1956.
[3] R. R. Nelson, ÔÇÿ-Research on productivity growth and productivity
differences: Dead ends and new departures,-- Journal of Economic
Literature, Vol. 19, pp. 1029-1064, 1981.
[4] K. J. Arrow, ÔÇÿ-The economic implications of learning by doing,ÔÇÿ-
Review of Economic Studies, Vol. 29, pp. 155-173, 1962.
[5] H. Uzawa, ÔÇÿ-Optimal technical change in an aggregative model of
economic growth,-- International Economic Review, Vol. 6, pp. 18-31,
1965.
[6] P. M. Romer, ÔÇÿ-Increasing returns and long-run growth,-- Journal of
Political Economy, Vol. 94, pp. 1002-1037, 1986.
[7] R. Lucas, ÔÇÿ-On the mechanics of economic development,-- Journal of
Monetary Economics, Vol. 22, pp. 3-42., 1988.
[8] D. Acemo─ƒlu, and F. Zilibotti, ÔÇÿ-Productivity differences,-- Quarterly
Journal of Economics, Vol. 116, pp. 563-606, 2001.
[9] D. Li, ÔÇÿ-The welfare effect of trade in the endogenous growth model,
The Canadian Journal of Economics, Vol.29, pp. 384-388.,1996.
[10] L. A. Rivera-Batiz and P. Romer, ÔÇÿ-Economic integration and
endogenous growth,-- Quarterly Journal of Economics, Vol. 106, pp.
531-555, 1991a.
[11] L. A. Rivera-Batiz and P. M. Romer, ÔÇÿ-International trade with
endogenous technological change,-- European Economic Review, Vol.
35, pp. 971-1001, 1991b.
[12] L. A. Rivera-Batiz and D. Xie, ÔÇÿ-Integration Among unequals,--
Regional Science and Urban Economics, Vol. 23, pp. 337-354, 1993.
[13] D. T. Coe, E. Helpman, and A. W. Hoffmaister, ÔÇÿ-North-South R&D
spillovers,-- The Economic Journal, Vol. 107, pp. 134-149, 1997.
[14] M. Abramovitz, ÔÇÿ-Catching-up, forging ahead, and falling behind,--
Journal of Economic History, Vol. 46, pp. 386-406, 1986.
[15] M. Abramovitz, ÔÇÿ-The search of the sources of growth: Areas of
ignorance, old and new,-- Journal of Economic History, Vol. 53, pp.
217-243, 1993.
[16] R. R. Nelson, and G. Wright, ÔÇÿ-The rise and fall of American
technological leadership: The postwar era in historical perspective, ÔÇÿ-
Journal of Economic Literature, Vol. 30, pp. 1931-1964, 1992.
[17] P. M. Romer, ÔÇÿ-Endogenous technological change,-- Journal of Political
Economy, Vol. 98, pp.71-102, 1990.
[18] G. M. Grossman, and E. Helpman, ÔÇÿ-Trade, knowledge spillovers, and
growth, European economic review,-- Vol. 35, pp. 517-526, 1991.
http://dss.princeton.edu/online_help/analysis/panel.htm
[19] R. B. Bhaskara, ÔÇÿ-Time series econometrics of growth models: a guide
for applied economists (unpublished work style)--,2006 , unpublished.
[20] M. Eller, P. R. Haiss, K. Steiner, ÔÇÿ-Foreign direct investment in the
financial sector: the engine of growth for Central and Eastern Europe,--
Europainstitut Working Papers No. 69, pp. 25, 2005.
[21] B. H. Baltagi, Econometric analysis of panel data (Book style). John
Wiley & Sons Ltd, New York, 1995.
[22] J. H. Stock and M. H. Watson, Introduction to econometrics (Book
style). 2003.
@article{"International Journal of Business, Human and Social Sciences:51576", author = "Fatma Didin Sonmez and Pinar Sener", title = "Effects of Human Capital and Openness on Economic Growth of Developed and Developing Countries: A Panel Data Analysis", abstract = "Technology transfer by international trade and
foreign direct investment is the most important positive
outcome of open economy. It is widely accepted that new
technology and knowledge have an important role in
enhancing economic growth. Human capital is the other
important factor assisting economic growth. In this study, the
role of human capital in the growth process is examined in a
view of new endogenous growth theory emphasizing on the
technology transfer resulting from international trade. Using
the panel data of 10 developed and 10 developing countries,
impact of human capital and openness on the rate of economic
growth of different countries is analysed. Evidence suggests
the view that human capital and openness contribute to the
economic growth in both developing and developed countries,
but with different rates.", keywords = "economic growth, human capital, openness,technology", volume = "3", number = "6", pages = "703-5", }
