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Investigating the Human Capital Development–growth Nexus

Cristian Barra and Roberto Zotti ()

International Regional Science Review, 2017, vol. 40, issue 6, 638-678

Abstract: In this article, we test whether economic growth depends on human capital development mainly operating through an upgrading of human capital stock in the area where the universities are located. We specify a growth model where a qualitative measure of human capital development, university efficiency, is considered in conjunction with a customary quantitative measure of human capital development, number of graduates. The model is estimated on panel data over the period 2003 to 2011. The evidence suggests that both indicators of human capital development have a positive and significant impact on gross domestic product per capita. Results also show that knowledge spillovers occur between areas through the geographical proximity to the efficient universities, suggesting that the geography of production is affected. Results hold when robustness checks are performed.

Keywords: higher education; knowledge spillovers; local economic development; parametric technique (search for similar items in EconPapers)
Date: 2017
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