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Publication Date:
September 2003
ISSN:
1935-1690
DOI:
10.2202/1534-5998.1115

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Abraham, Arpad / Carceles-Poveda , Eva / Cavalcanti, Tiago / Kambourov, Gueorgui / Lambertini, Luisa / Ruhl, Kim / Tavares, Jose

The B.E. Journal of Macroeconomics

1 Issue per year

IMPACT FACTOR 2011: 0.321

 

High-Tech Human Capital: Do the Richest Countries Invest the Most?

Tiago Neves Sequeira1

1Departamento de Gestão e Economia - Universidade da Beira Interior, Faculdade de Economia - Universidade Nova de Lisboa, sequeira@ubi.pt

Citation Information: Topics in Macroeconomics. Volume 3, Issue 1, Pages –, ISSN (Online) 1534-5998, DOI: 10.2202/1534-5998.1115, September 2003

Publication History:
Published Online:
2003-09-26

In this paper we show that the richest countries are investing proportionally less than middle income countries in engineering and technical human capital. We generalize this result, controlling for country-specific effects, cross-time error correlations, heteroskedasticity, the presence of outliers and the introduction of other explanatory variables. Thus, we establish an unexpected stylized fact (about human capital composition): the proportion of high-tech human capital in tertiary education presents an inverted U-shaped relationship with GDP per capita. This is interesting because Research and Development (R&D) endogenous growth models predict and most evidence show that investment in R&D increases with economic development.

Keywords: human capital composition; high-tech human capital; R&D; development

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