Human Capital and Regional Development

Nicola Gennaioli, Rafael LaPorta, Florencio Lopez-de-Silanes () and Andrei Shleifer
Authors registered in the RePEc Author Service: Rafael La Porta

Working Paper from Harvard University OpenScholar

Abstract: We investigate the determinants of regional development using a newly constructed database of 1569 sub-national regions from 110 countries covering 74 percent of the world?s surface and 96 percent of its GDP. We combine the cross-regional analysis of geographic, institutional, cultural, and human capital determinants of regional development with an examination of productivity in several thousand establishments located in these regions. To organize the discussion, we present a new model of regional development that introduces into a standard migration framework elements of both the Lucas (1978) model of the allocation of talent between entrepreneurship and work, and the Lucas (1988) model of human capital externalities. The evidence points to the paramount importance of human capital in accounting for regional differences in development, but also suggests from model estimation and calibration that entrepreneurial inputs and human capital externalities are essential for understanding the data.

New Economics Papers: this item is included in nep-geo, nep-ger, nep-gro, nep-his, nep-hrm and nep-ure
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http://scholar.harvard.edu/shleifer/node/19522

Related works:
Working Paper: Human Capital and Regional Development (2015)
Journal Article: Human Capital and Regional Development (2013)
Working Paper: Human capital and regional development (2012)
Working Paper: Human Capital and Regional Development (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:qsh:wpaper:19522

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