Complementarity between human capital and public infrastructure in industrial comparative advantage

Rimvie Enoc Kabore ()
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Rimvie Enoc Kabore: LEDi - Laboratoire d'Economie de Dijon [Dijon] - UB - Université de Bourgogne - UBFC - Université Bourgogne Franche-Comté [COMUE]

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Abstract: The article examines the role of public capital as an infrastructure service in the acquisition of industrial comparative advantages. To achieve this in this framework, we develop a theoretical model highlighting the complementarity between public and human capital as a mechanism of industrial development, and test this idea using sectoral panel data from 1999 to 2014 across 35 advanced and less advanced countries. Our results show that the sustainable acquisition of a comparative advantage in the production of industrial goods can only be guaranteed by accumulating public capital and human capital. It shows that public infrastructure can only generate industrialization when it is made available to the economy through human capital.

Keywords: Public infrastructure; Human capital; Industrial advantage comparative (search for similar items in EconPapers)
Date: 2021-10-06
New Economics Papers: this item is included in nep-gro
Note: View the original document on HAL open archive server: https://hal.science/hal-03359662v1
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