Relative human capital endowments: estimates for selected countries and implications for international capital flows
Erich Gundlach ()
No 545, Kiel Working Papers from Kiel Institute for the World Economy (IfW)
Despite large rate of return differentials implied by persistent income differentials, relatively little capital flows to poor countries. The rate of return differentials are substantially reduced, however, if different human capital endowments are taken into account, as is shown for a limited sample of countries. Additionally accounting for human capital externalities based on independent empirical evidence turns around the predicted rate of return differentials in favor of the rich countries. Hence, the world economy may converge to a rather unequal distribution of incomes as long as human capital accumulation is neglected as the key variable limiting economic development.
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:zbw:ifwkwp:545
Access Statistics for this paper
More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW) Contact information at EDIRC.
Series data maintained by ZBW - German National Library of Economics ().