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Real Exchange Rate and Human Capital in the Empirics of Economic Growth

Delfim Gomes Neto ()

Working Papers from Banco de Portugal, Economics and Research Department

Abstract: This paper discusses the relative importance of transitional dynamics and steady state issues in growth. A new perspective is proposed about this debate, marked by different views. We argue that it is also important to consider the dynamics of economies, given the presence of low speed of convergence. We use the real exchange rate and take into account a model where all variables like GDP have the same dynamics. Moreover, we explicitly derive a role for human capital in growth regressions.

JEL-codes: F43 O41 O47 (search for similar items in EconPapers)
Date: 2004
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