The effect of human capital on the trade-growth nexus: A dynamic panel threshold analysis

Mariem Gharsallah and Salwa Trabelsi

Research in Economics, 2024, vol. 78, issue 4

Abstract: This paper analyzes the nonlinear effect of trade openness on economic growth over a sample of developed and developing countries during the period 1980–2020. Using a Dynamic Panel Threshold Model advanced by Seo and Shin (2016), and Seo et al., (2019), the results prove the existence of a human capital's threshold level above it openness to trade has a positive effect on economic growth. More precisely, trade can enhance economic performance if the human capital is high, otherwise, the effect is negative.

Keywords: Trade openness; Economic growth; Human capital; Dynamic panel threshold model (search for similar items in EconPapers)
JEL-codes: E0 E1 F10 F14 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:78:y:2024:i:4:s1090944324000528

DOI: 10.1016/j.rie.2024.100988

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