The augmented and integrative model of economic growth: Theoretical and empirical evidence from USA

Victor Moutinho, Helena M. Santos de Oliveira, Henrique Viana Espinosa de Oliveira and Félix Puime Guillén

Socio-Economic Planning Sciences, 2023, vol. 89, issue C

Abstract: The current nexus between education and economic growth leads us to propose a hybrid and integrated theoretical model. The variables chosen for this research were human capital and labour, and their impact on unemployment and economic growth was considered. In the validation of the theoretical model, different equations were contemplated, and the ARDL co-integration technique for its estimation was chosen. This study emphasizes the importance of technological progress, physical capital and human capital; the latter is measured by educational training and its interactive effect on employment and unemployment in explaining the behaviour of economic growth in the US from 1981 to 2019. The results show different statistical significance in the short and long term. These results corroborate the premise that there are partial adjustments in the short term, particularly after an economic crisis. In the long term, economic growth is affected by the positive or negative magnitudes of the product elasticity for each of the drivers considered. In terms of policy implications, a combination of structural and demand-driven policies must be implemented to reduce unemployment, in particular, to halt protracted economic recessions.

Keywords: Economic growth; Physical capital; Human capital; Technological progress; Employment; Unemployment (search for similar items in EconPapers)
JEL-codes: A10 A20 C01 C50 C51 C52 E24 F66 O34 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:soceps:v:89:y:2023:i:c:s0038012123001854

DOI: 10.1016/j.seps.2023.101673

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