Two approaches taken to the embodiment question are compared and discussed: quantitative theory and traditional growth accounting. The two approaches give very different estimates for the contribution of investment-specific technological advance to economic growth. Therefore, the approach taken matters. It is argued that the measures used in traditional growth accounting to gauge the importance...

abstract in this paper, income per capita convergence hypothesis is tested in selected oic countries. for this purpose, we use the time series model and univariate kpss stationary test with multiple structural breaks (carrion-i-silvestre et al. (2005)) over the period 1950-2008. the results show that most oic countries could not catch up toward usa. although because of some positive term of tra...

We introduce social capital accumulation into a neoclassical model, showing how it differs from physical and human capital accumulation. We take the view that social capital is crucial to the enjoyment of socially provided goods and that it is mainly accumulated by means of participation to social activities. Under-investment in social capital may lead a growing economy to fall into a social po...

In the paper we present and estimate an endogenous growth model in which sustained per capita growth is the result of positive externalities of investment in physical capital. In contrast to the usual assumption that investment raises physical capital and, as a byproduct, a stock of knowledge one for one, we suppose a different framework. So, we treat physical and human capital as two distinct ...

This paper uses a large panel of financial flow data from banks to assess how institutions affect international lending. First, employing a time varying composite institutional quality index in a fixed-effects framework, the paper shows that institutional improvements are followed by significant increases in international finance. Second, cross-sectional models also show a strong effect of init...

the purpose of this paper is to evaluate the effect of financial liberalization on exchange rate volatilities of the selected developing countries, which are now known as liberalizing countries. thus we test the hypothesis in which financial liberalization effect exchange rate volatilities in 43 selected developing countries during 1996-2005. accordingly, a regression model of exchange rate vol...

On Human Capital Formation with Exit Options: Comment and New Results Katz and Rapoport (2005) conclude that with linear production technology and the possibility of unilateral migration, region-specific shocks may increase the average level of education. Previously, Poutvaara (2000) derived a corresponding result with Cobb-Douglas technology and migration which may go in both directions. This ...

Creativity and the Family Tree: Human Capital Endowments and the Propensity of Entrepreneurs to Patent In this paper we show that the patenting behavior of creative entrepreneurs is correlated with the patenting behavior of their fathers, which we refer to as a source of the entrepreneurs’ human capital endowments. Our argument for this relationship follows from established theories of developm...

In this paper I use extensive spatial variation in end-of-communism local skill endowment to test for the presence of human capital spillovers and to understand the regional variation in returns to education in a transition country — the Czech Republic. The evidence is consistent with a tendency of skill-intensive production to locate in areas relatively abundant in skills, but I find no eviden...