Intereconomics

, Volume 32, Issue 1, pp 23–35 | Cite as

Human capital and economic development: A macroeconomic assessment

  • Erich Gundlach
Human Capital
  • 325 Downloads

Abstract

The role of human capital has so far not been well documented at the macroeconomic level. Many empirical studies lack a consistent theoretical foundation and there are measurement problems due to a very narrow concept of human capital focusing on formal education. Future empirical research should take into account other important determinants of human capital such as the quality of education, the experience of the workforce, and the health and nutritional status of the population.

Keywords

Human Capital Capital Stock Physical Capital Capital Share Penn World Table 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
This is a preview of subscription content, log in to check access.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    For empirical research on the determinants of economic development using long lists of explanatory variables, see, e.g., R. C. Kormendi, P. G. Meguire: Macroeconomic Determinants of Growth. Cross-country Evidence, in: Journal of Monetary Economics, Vol. 16, 1985, pp. 141–163; R. Levine, D. Renelt: A Sensitivity Analysis of Cross-country Growth Regressions, in: American Economic Review, Vol. 82(4), 1992, pp. 942–963; and R. Levine, S. Zervos: Looking at the Facts. What We Know about Policy and Growth from Cross-country Analysis, in: American Economic Review, Vol. 83(2), 1993, pp. 426–430.Google Scholar
  2. 2.
    The seminal contributions in this field are P. M. Romer: Increasing Returns and Long-Run Growth, in: Journal of Political Economy, Vol. 94, 1986, pp. 1002–1037; R. E. Lucas jr.: On the Mechanics of Economic Development, in: Journal of Monetary Economics, Vol. 22, 1988, pp. 3–42; and G. M. Grossman, E. Helpman: Innovation and Growth in the Global Economy, Cambridge, Mass., 1991, Ever since, the literature has exploded. For recent summaries, see, e.g., R. E. Lucas jr.: Making a Miracle, in: Econometrica, Vol. 61, 1993, pp. 251–272; and the contributions in Symposium New Growth Theory, in: Journal of Economic Perspectives, Vol. 8, 1994, pp. 3–72.Google Scholar
  3. 3.
    R.MM. Solow: A Contribution to the Theory of Economic Growth, in: Quarterly Journal of Economics, Vol. 70, 1956, pp. 65–94.Google Scholar
  4. 4.
    Cf., A. Young: A Tale of Two Cities: Factor Accumulation and Technical Change in Hong Kong and Singapore, in: O. Blanchard and S. Fischer (eds.): NBER Macroeconomics Annual 1992, Cambridge, Mass., 1992, pp. 13–54; A. Young: The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience, in: Quarterly Journal of Economics, Vol. 110, 1995, pp. 641–680; and R. M. Solow: Technical Change and the Aggregate Production Function, in: Review of Economics and Statistics, Vol. 39, 1957, pp. 312–320.Google Scholar
  5. 5.
    Cf. N. G. Mankiw, D. Romer, D. N. Weil: A Contribution to the Empirices of Economic Growth, in: Quarterly Journal of Economics, Vol. 107, 1992, pp. 408–437.Google Scholar
  6. 6.
    Cf. A. Maddison: Growth and Slowdown in Advanced Capitalist Economies. Techniques of Quantitative Assessment, in: Journal of Economic Literature, Vol. 25, 1987, pp. 649–698.Google Scholar
  7. 7.
    Cf. N. G. Mankiw, David Romer, David N. Weil, op. cit A Contribution to the Empirics of Economic Growth, in: Quarterly Journal of Economics, Vol. 107, 1992, and N. G. Mankiw: The Growth of Nations, in: Brookings Papers on Economic Activity, 1995 (1), pp. 275–326.Google Scholar
  8. 8.
    Cf. Penn World Table (PWT) 5.6, Read-only file maintained by the NBER, Cambridge, Mass., 1994.Google Scholar
  9. 10.
    For a survey, see X. Sala-i-Martin: The Classical Approach to Convergence Analysis, in: Economic Journal, Vol. 106, 1996, pp. 1019–1036. Recent studies for large developing countries include N. Bajpai and J. D. Sachs: Trends in Inter-State Inequalities of Income in India, Harvard University 1995, (mimeo); E. Gundlach: Solow Meets Market Socialism: Regional Convergence of Output per Worker in China, Kiel Institute of World Economics, Working Paper, 726, February 1996; T. Jian, J. D. Sachs, A. M. Warner: Trends in Regional Inequality in China, NBER Working Paper, 5412, January 1996; and A. A. Zini jr., J. D. Sachs: Regional Income Convergence in Brazil, April 1996 (mimeo).Google Scholar
  10. 11.
    Cf. R. J. Barro, N. G. Mankiw, X. Sala-i-Martin: Capital Mobility in Neoclassical Models of Economic Growth, in: American Economic Review, Vol. 85 (1), 1995, pp. 103–115.Google Scholar
  11. 12.
    Cf. E. Gundlach: Openness and Economic Growth in Developing Countries, Kiel Institute of World Economics, Working Paper, 749, June 1996; L. J. Lau, D. Jamison, F. F. Louat: Education and Productivity in Developing Countries, World Bank, Policy Research Working Papers, 612, March 1991.Google Scholar
  12. 13.
    L. Pritchett: Population Growth, Factor Accumulation, and Productivity, World Bank, Policy Research Working Papers, 1567, January 1996.Google Scholar
  13. 14.
    For a summary of the literature on the returns to investment in education, see G. Psacharopoulos: Returns to Investment in Education. A Global Update, World Bank, Policy Research Working Papers, 1067, January 1993.Google Scholar
  14. 16.
    Cf. George Psacharopoulos, op. cit. Returns to Investment in Education. A Global Update, World Bank, Policy Research Working Papers, 1067, January 1993.Google Scholar
  15. 17.
    All figures are taken from G. Psacharopoulos, op. cit. Returns to Investment in Education. A Global Update, World Bank, Policy Research Working Papers, 1067, January 1993. Tables 1 and 4.Google Scholar
  16. 18.
    Cf. L. Lau et al. op. cit. Education and Productivity in Developing Countries, World Bank, Policy Research Working Papers, 612, March 1991. and E. Gundlach: Openness…, op. cit. Openness and Economic Growth in Developing Countries, Kiel Institute of World Economics, Working Paper, 749, June 1996.Google Scholar
  17. 19.
    For a summary of the micro evidence see T.P. Schultz: The Role of Education and Human Capital in Economic Development: An Empirical Assessment, in: Horst Siebert (ed.): Economic Growth in the World Economy. Symposium 1992. Tübingen, 1993, pp. 145–164.Google Scholar
  18. 20.
    Cf. L. Pritchett: Where Has All the Education Gone? World Bank, Policy Research Working Papers, 1581, March 1996.Google Scholar
  19. 21.
    R. F. Engle, C. W. Granger: Co-integration and Error Correction: Representation, Estimation, and Testing, in: Econometrica, Vol. 55, 1987, pp. 251–276.Google Scholar
  20. 22.
    R. Summers, A. Heston: Improved International Comparisons of Real Product and Its Composition: 1950–80, in: Review of Income and Wealth, Vol. 30,1984, pp. 207–262.Google Scholar
  21. 23.
    Penn World Table (PWT) 5.6, op. cit. Read-only file maintained by the NBER, Cambridge, Mass., 1994.Google Scholar
  22. 24.
    N.G. Mankiw, op. cit. The Growth of Nations, in: Brookings Papers on Economic Activity, 1995 (1), pp. 275–326.Google Scholar
  23. 25.
    Cf. A. D. Foster, M. R. Rosenzweig: Technical Change and Human Capital Returns and Investments: Evidence from the Green Revolution, in: American Economic Review, Vol. 86(4), 1996, pp. 931–953.Google Scholar
  24. 26.
    Cf. R. J. Barro: Economic Growth in a Cross Section of Countries, in: Quarterly Journal of Economics, Vol. 106, 1991, pp. 407–443.Google Scholar
  25. 27.
    Ibid. Cf. R. J. Barro: Economic Growth in a Cross Section of Countries, in: Quarterly Journal of Economics, Vol. 106, 1991, pp. 407–443.Google Scholar
  26. 28.
    Cf. J. D. Sachs, A. Warner: Economic Convergence and Economic Policies, NBER Working Paper, 5039, February 1995.Google Scholar
  27. 29.
    Cf. D. Rodrik: King Kong Meets Godzilla: The World Bank and The East Asian Miracle, CEPR Discussion Paper, 944, April 1994.Google Scholar
  28. 31.
    R. Levine, D. Renelt, op. cit. A Sensitivity Analysis of Cross-country Growth Regressions, in: American Economic Review, Vol. 82(4), 1992, pp. 942–963Google Scholar
  29. 32.
    Cf. Z. Griliches: Education, Human Capital and Growth: A Personal Perspective, Harvard Institute of Economic Research, Discussion Paper, 1745, January 1996.Google Scholar
  30. 33.
    Cf. N. G. Mankiw et al., op. cit. The Growth of Nations, in: Brookings Papers on Economic Activity, 1995 (1), pp. 275–326.Google Scholar
  31. 34.
    Cf. J. Benhabib, M. M. Spiegel: The Role of Human Capital in Economic Development: Evidence from Aggregate Cross-country and Regional U.S. Data, in: Journal of Monetary Economics, Vol. 34, 1994, pp. 143–173.Google Scholar
  32. 35.
    Cf. R. E. Lucas jr.: On the Mechanics…, op. cit. On the Mechanics of Economic Development, in: Journal of Monetary Economics, Vol. 22, 1988, pp. 3–42.Google Scholar
  33. 36.
    Cf. P. M. Romer: Endogenous Technological Change, in: Journal of Political Economy, Vol. 98 (5,2), 1990, pp. S71–S102.Google Scholar
  34. 37.
    Cf. G. A. Kyriacou: Level and Growth Effects of Human Capital: A Cross-country Study of the Convergence Hypothesis, New York University, May 1991 (mimeo).Google Scholar
  35. 38.
    Cf. R. J. Barro, J.-W. Lee: International Comparisons of Educational Attainment, in: Journal of Monetary Economics, Vol. 32, 1993, pp. 363–394.Google Scholar
  36. 39.
    Cf. L. J. Lau, D. T. Jamison, F. F. Louat, op. cit. Education and Productivity in Developing Countries, World Bank, Policy Research Working Papers, 612, March 1991.Google Scholar
  37. 40.
    Cf. L.-I. Kim, L. J. Lau: Human Capital and Aggregate Productivity: Some Empirical Evidence from the Group-of-Five Countries, Stanford University, September 1992 (mimeo).Google Scholar
  38. 41.
    Cf. L. J. Lau, D. T. Jamison, S.-C. Lin, S. Rivkin: Education and Economic Growth. Some Cross-sectional Evidence from Brazil, in: Journal of Development Economics, Vol. 41, 1993, pp. 45–70.Google Scholar
  39. 42.
    N. G. Mankiw et al., op. cit. The Growth of Nations, in: Brookings Papers on Economic Activity, 1995 (1), pp. 275–326.Google Scholar
  40. 43.
    R. M. Solow: A Contribution…, op. cit. A Contribution to the Theory of Economic Growth, in: Quarterly Journal of Economics, Vol. 70, 1956, pp. 65–94.Google Scholar
  41. 44.
    Cf. E. Gundlach: The Role of Human Capital in Economic Growth: New Results and Alternative Interpretations, in: Weltwirtschaftliches Archiv, Vol. 131, 1995, pp. 383–402.Google Scholar
  42. 45.
    Cf. N. Gemmel: Evaluating the Impacts of Human Capital Stocks and Accumulation on Economic Growth: Some New Evidence, in: Oxford Bulletin of Economics and Statistics, Vol. 58, 1996, pp. 9–28.Google Scholar
  43. 46.
    M. Knight, N. Loayza, D. Villanueva: Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach, in: IMF Staff Papers, Vol. 40, 1993, pp. 512–541.Google Scholar
  44. 47.
    Cf. N. G. Mankiw et al., op. cit. The Growth of Nations, in: Brookings Papers on Economic Activity, 1995 (1), pp. 275–326.Google Scholar
  45. 48.
    Cf. N. G. Mankiw, op. cit. The Growth of Nations, in: Brookings Papers on Economic Activity, 1995 (1), pp. 275–326.Google Scholar
  46. 49.
    E. Gundlach: Solow Meets…, op. cit. Solow Meets Market Socialism: Regional Convergence of Output per Worker in China, Kiel Institute of World Economics, Working Paper, 726, February 1996.Google Scholar
  47. 50.
    Cf. J. Knight: Human Capital in Economic Development. Editorial Introduction, in: Oxford Bulletin of Economics and Statistics, Vol. 58, 1996, pp. 5–8.Google Scholar
  48. 51.
    Cf. E. A. Hanushek, D. Kim: Schooling, Labor Force Quality, and Economic Growth, NBER Working Paper, 5399, December 1995.Google Scholar
  49. 52.
    Ibid. Cf. E. A. Hanushek, D. Kim: Schooling, Labor Force Quality, and Economic Growth, NBER Working Paper, 5399, December 1995.Google Scholar
  50. 53.
    Cf. D. W. Lee, T. H. Lee: Human Capital and Economic Growth. Tests Based on the International Evaluation of Educational Achievement, in: Economics Letters, Vol. 47, 1995, pp. 219–225.Google Scholar
  51. 54.
    G. S. Becker: Human Capital. A Theoretical and Empirical Analysis with Special Reference to Education, National Bureau of Economic Research, New York 1964.Google Scholar
  52. 55.
    J. Mincer: Schooling, Experience, and Earnings, National Bureau of Economic Research, New York 1974.Google Scholar
  53. 56.
    A. O. Krueger: Factor Endowments and Per Capita Income Differences Among Countries, in: Economic Journal, Vol. 78, 1968, pp. 641–659.Google Scholar
  54. 57.
    Cf. E. Gundlach: Accounting for the Stock of Human Capital: Selected Evidence and Potential Implications, in: Weltwirtschaftliches Archiv, Vol. 130, 1994, pp. 350–374.Google Scholar
  55. 58.
    G. A. Kyriacou, op. cit. Level and Growth Effects of Human Capital: A Cross-country Study of the Convergence Hypothesis, New York University, May 1991 (mimeo).Google Scholar
  56. 59.
    L. J. Lau, D. T. Jamison, F. F. Louat, op. cit. Education and Productivity in Developing Countries, World Bank, Policy Research Working Papers, 612, March 1991.Google Scholar
  57. 60.
    R. J. Barro, J.-W. Lee, op. cit. International Comparisons of Educational Attainment, in: Journal of Monetary Economics, Vol. 32, 1993, pp. 363–394.Google Scholar
  58. 61.
    For a recent survey, see J. R. Behrman: The Impact of Health and Nutrition on Education, in: World Bank Research Observer, Vol. 11, 1996, pp. 23–27.Google Scholar
  59. 62.
    Cf. T. P. Schultz, op. cit. The Role of Education and Human Capital in Economic Development: An Empirical Assessment, in: Horst Siebert (ed.): Economic Growth in the World Economy. Symposium 1992. Tübingen, 1993, pp. 145–164.Google Scholar
  60. 63.
    For recent overviews, see R. W. Fogel: Economic Growth, Population Theory, and Physiology: The Bearing of Long-term Processes on the Making of Economic Policy, in: American Economic Review, Vol. 84 (3), 1994, pp. 369–395; and R. H. Steckel: Stature and the Standard of Living, in: Journal of Economic Literature, Vol. 33, 1995, pp. 1903–1940.Google Scholar
  61. 64.
    Cf. R. W. Fogel: The Conquest of High Mortality and Hunger in Europe and America: Timing and Mechanisms, NBER Working Paper Series on Historical Factors in Long Run Growth, 16, 1990.Google Scholar
  62. 65.
    Cf. D. Thomas, J. Strauss: Health, Wealth and Labor Market Outcomes of Men and Women: Evidence from Brazil, Paper presented at the Conference on Women's Human Capital and Development, Bellagio, Italy 1992 (mimeo).Google Scholar

Copyright information

© HWWA and Springer-Verlag 1997

Authors and Affiliations

  • Erich Gundlach
    • 1
  1. 1.Kiel Institute of World EconomicsKielGermany

Personalised recommendations