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Human capital and international knowledge spillovers in TFP growth of a sample of developing countries: an exploration of alternative approaches

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This study tests and compares the two major approaches to the modelling of human capital in growth regressions, i.e. the Lucas and the Nelson-Phelps approach, in the context of developing country models with international knowledge spillovers. On balance, the results seem to favour the Nelson-Phelps approach. Using human capital stock variables instead of flow variables, a positive role for human capital in the absorption of international knowledge spillovers other than embodied R&D spillovers is confirmed. The results suggest the importance of distinguishing between different types of international knowledge spillovers, as well as between different human capital sub-categories.
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Document Type: Research Article

Publication date: 10 May 2002

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