The Effects of Human Capital on Output Growth in ICT Industries: Evidence from OECD Countries
Gavin Murphy and
Iulia Siedschlag ()
No WP184, Papers from Economic and Social Research Institute (ESRI)
Information and communication technologies (ICT) play a central role in the transition to knowledge - based economies. In this paper we analyse the effects of human capital in fostering output growth in ICT manufacturing and services using data from a sample of twenty OECD countries over the period 1980-2002. We focus on within country between industry differences and estimate a system of simultaneous equations to account for simultaneous effects of human capital on physical investment and output growth. The results of our econometric analysis suggest that countries with a high human capital stock experienced faster output growth in ICT producing manufacturing and ICT using services. Also, in countries with high human capital improvement over the analysed period output grew relatively faster in ICT producing manufacturing industries. Furthermore, we find that past country level educational attainment reflected in the human capital stock and human capital accumulation over the analysed period had a direct positive and significant effect on physical capital investment. Our findings indicate that in developed countries human capital is an important factor driving the ICT industries growth.
Keywords: Human capital; ICT industries; Economic growth (search for similar items in EconPapers)
JEL-codes: E62 F43 O33 (search for similar items in EconPapers)
Pages: 26 pages
New Economics Papers: this item is included in nep-edu, nep-hrm, nep-ict, nep-knm and nep-mac
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Working Paper: The Effects of Human Capital on Output Growth in ICT Industries: Evidence from OECD Countries (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:esr:wpaper:wp184
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