Dilution effects, population growth and economic growth under human capital accumulation and endogenous technological change

Alberto Bucci (), Levent Eraydin and Moritz Müller

No 113, Working Paper Series in Economics from Karlsruhe Institute of Technology (KIT), Department of Economics and Management

Abstract: This paper answers the following two questions: 1) In the data, can we find a dilution effect of population growth also on per-capita human capital investment? If yes, 2) how can we use this fact to explain theoretically the existence of a differential impact of population change on economic growth across countries? In the first part of the article we document empirically the considerable across-countries heterogeneity of a dilution effect of population growth also in regard to the process of per-capita human capital formation and observe that, at a country's level, population growth may be relevant (either positively or negatively) for economic growth depending on the specific way it affects the process of schooling-acquisition by agents. In the second part of the paper we use these results in order to build a multi-sector growth model which is capable of accounting (depending on the strength of the found dilution effect of population growth on per-capita human capital formation) for the non-monotonous correlation between demographic and economic growth rates in the long-run.

Keywords: Human Capital Investment; Economic Growth; Population Growth; Dilution Effects; Research & Development (search for similar items in EconPapers)
JEL-codes: J10 J24 O33 O41 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-dem, nep-gro and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Dilution effects, population growth and economic growth under human capital accumulation and endogenous technological change (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:kitwps:113

DOI: 10.5445/IR/1000079884

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