International Review of Economics

, Volume 56, Issue 1, pp 17–27 | Cite as

Population and economic growth with human and physical capital investments

Article

Abstract

We present a two-sector endogenous growth model with human and physical capital accumulation to analyze the long-run relationship between population growth and real per capita income growth. Formal education and investment in physical capital are assumed to be two separate components of human capital production. Along the balanced growth path equilibrium, population change may have a positive, negative, or else neutral effect on economic growth depending on whether physical and human capital are complementary/substitutes for each other in the formation of new human capital and on their degree of complementarity.

Keywords

Economic growth Population Human capital accumulation Physical capital investment 

JEL Classification

O33 O41 J24 

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Copyright information

© Springer-Verlag 2008

Authors and Affiliations

  1. 1.Department of Economics, Business and StatisticsUniversity of MilanMilanItaly

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