Age-structured Human Capital and Spatial Total Factor Productivity Dynamics

Tapas Mishra, Adusei Jumah () and Mamata Parhi

No 226, Economics Series from Institute for Advanced Studies

Abstract: This paper models total factor productivity (TFP) in space and proposes an empirical model for TFP interdependence across spatial locations. The interdependence is assumed to occur due to age-structured human capital dynamics. A semi-parametric spatial vector autoregressive framework is suggested for modeling spatial TFP dynamics where the role of demographic state and technological change are explicitly incorporated in the model to influence their spatial TFP co-movements. Empirical scrutiny in case of Asian countries suggests that cross-country human capital differences in their accumulation and appropriation pattern significantly influenced TFP volatility interdependence. The finding of complementarity in TFP in spatial locations calls for joint policy program for improving aggregate and individual country welfare.

Keywords: Total factor productivity; Spatial growth; Non-linearity; Human capital; Age-structure; Semi-parametric VAR (search for similar items in EconPapers)
JEL-codes: C14 C31 E61 N10 O30 O47 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2008-10
New Economics Papers: this item is included in nep-age, nep-eff, nep-geo, nep-hrm, nep-mac and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://irihs.ihs.ac.at/id/eprint/1860 First version, 2008 (application/pdf)

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