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Economic growth as a function of human capital, internet and work

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The World Bank has suggested the need to enhance Information and Communication Technology skills in all sectors because a 10% increase in internet connectivity was found to boost GDP growth by 1.38%. Simultaneously, the OECD argued that high internet access rates generate a 2% increase in GDP. Because the internet positively affects economic growth, we investigated the relationship between an economically active population, human capital and technology to evaluate these effects in Mexico. A data series from 1991 to 2010 was analysed in three stages according to the least-squares method. A Cobb–Douglas function under the Solow model was considered. Technology and internet access were found to positively affect top-level students and graduate students and thus contribute to the global innovation index.
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Keywords: O21; O38; O39; economic growth; education; human capital; internet

Document Type: Research Article

Affiliations: 1: UPIICSA, Instituto Politécnico Nacional, Av. Té 950 Granjas México, Iztacalco, 08400, DF, Mexico 2: Colegio de Postgraduados, Economía, Texcoco, Mexico

Publication date: 2014-09-12

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