THE NONLINEAR EFFECT OF HUMAN CAPITAL ON TOTAL FACTOR PRODUCTIVITY – EMPIRICAL EVIDENCE FROM DEVELOPING COUNTRIES

  • Nguyễn Thị Mỹ Linh
Keywords: R&D, human capital, total productivity factor, GMM

Abstract

On the background of the theory of innovation-driven growth and models with thresholds in human capital and low-growth equilibria, we hypothesize that the impact of human capital on TFP is nonlinear. The objective of this study is to release the nonlinear effect of human capital while controlling R&D and unemployment on total productivity factor in developing countries by employing Generalized Method of Moments (GMM) analysing a panel data of 18 countries spanning from 2005 to 2017. The regression result proves that R&D has no significant meaning on TFP growth. However, empirical evidence shows that there are decreasing returns to human capital. Moreover, the synergy interaction of R&D and human capital turn out to be strategic complements, and unemployment has negative impact on TFP growth. The above results have several important implications to policy makers of these countries.

điểm /   đánh giá
Published
2020-12-07
Section
Bài viết