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Human Capital, Age Structure and Growth Fluctuations

Crespo Cuaresma, Jesus and Mishra, Tapas (2011) Human Capital, Age Structure and Growth Fluctuations. Applied Economics. ISSN 0003-6846

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Abstract

This article assesses the empirical relationship between per capita income growth fluctuations and the age-structured human capital variations across four groups of geographically clustered developed and developing countries from spatial perspective. We estimate a spatial Vector Autoregressive (VAR) model of income dynamics where the distance between countries is defined on relational space based on their similarity in appropriation tendency of human capital in the production processes. These distances are computed using a newly developed human capital data set which fully characterizes the demographic structure of human capital, and thus underlines the joint relevance of demography and human capital in economic growth. Spatial effects on growth interdependence and complementarity are then explored with respect to the proposed distance metrics. Our results imply that significant cross-country growth interdependence based on human capital distances exists among defined country groups suggesting the need for a cooperative policy programme among them. We also find that the relationship between economic growth and human capital is highly nonlinear as a function of the proposed human capital distance. (authors' abstract)

Item Type: Article
Additional Information: To see the final version of this paper please visit the publisher's website. Access to the published version may require a subscription. This is an iFirst article of Taylor & Francis' proprietary early-online-publication system.
Keywords: economic growth / fluctuations / spatial vector autoregression / human capital / demographic structure
Classification Codes: JEL C14, C23, O47, O50
Divisions: Departments > Volkswirtschaft > Geld- und Finanzpolitik
Version of the Document: Draft
Variance from Published Version: Not applicable
Depositing User: Dissertation Administrator
Date Deposited: 04 Apr 2011 13:27
Last Modified: 27 Oct 2014 20:45
Related URLs:
URI: http://epub.wu.ac.at/id/eprint/3055

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