Economic growth as a function of human capital, internet and work

Martha Jim鮥z, Jaime Arturo Matus and Miguel Angel Mart󹑺

Applied Economics, 2014, vol. 46, issue 26, 3202-3210

Abstract: The World Bank has suggested the need to enhance Information and Communication Technology skills in all sectors because a 10% increase in internet connectivity was found to boost GDP growth by 1.38%. Simultaneously, the OECD argued that high internet access rates generate a 2% increase in GDP. Because the internet positively affects economic growth, we investigated the relationship between an economically active population, human capital and technology to evaluate these effects in Mexico. A data series from 1991 to 2010 was analysed in three stages according to the least-squares method. A Cobb-Douglas function under the Solow model was considered. Technology and internet access were found to positively affect top-level students and graduate students and thus contribute to the global innovation index.

Date: 2014
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DOI: 10.1080/00036846.2014.925079

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