FDI, human capital and income convergence—Evidence for European regions

Human Capital and Inward Fdi

After a review of the literature, we conclude that there is potential for significant “spillover effects” from FDI into host countries. However, we identify some limitations of this potential to do with the stock of human capital, the interest in local firms of promoting skills transfer and the competition environment. We suggest comparing conditions and effects between regions, particularly be...

Human Capital and Income Concentration in Brazil

High income concentration and poverty in Brazil have been intensively studied by many researchers, suggesting that an obvious factor influencing unequal earnings in the country is the heterogeneous level of education in the labor force; for education can be understood as a mean to attain improvements in labor productivity and consequently in family income. The present study aims to construct a ...

Human Capital and Income Distribution Dynamics

The paper assumes a continuum of two period-lived agents; agents are identical except for the inherited income. Young agents optimally allocate their inherited income between consumption and investment in human capital in a stochastic environment. In the second period they receive a wage proportional to the accumulated human capital and invest in o®spring. Two main results are provided: a low e...

Income Inequality within European Regions: Determinants and Effects on Growth*

The Two Faces of R&d and Human Capital: Evidence from Western European Regions

This paper investigates two channels through which research and development (R&D) and human capital may affect regional total factor productivity growth in the manufacturing sector, using panel data on 159 EU-15 regions from 1992 to 2005. Based on the endogenous growth model of Griffith, Redding and Van Reenen (2003), we allow R&D and human capital to influence productivity growth both directly...