International TFP Dynamics and Human Capital Stocks: A Panel Data Analysis, 1960-2003

27 Pages Posted: 14 Mar 2011

See all articles by Adriana Di Liberto

Adriana Di Liberto

Università di Cagliari and Crenos; IZA Institute of Labor Economics

Francesco Pigliaru

University of Cagliari and CRENoS

Piergiorgio Chelucci

Universita di Cagliari

Multiple version iconThere are 2 versions of this paper

Date Written: February 22, 2011

Abstract

This paper adopts fixed-effect panel methodologies to obtain TFP values for a sample of 76 countries from 1960 through 2003. Our results are robust to the use of different estimators (LSDV, Kiviet-corrected LSDV, and GMM). They show that TFP dynamics are characterized by a process of conditional convergence where most countries do not catch up with the U.S., and where human capital plays an important role in technology adoption, as suggested by Nelson and Phelps in 1966. Such a role is robust to the inclusion of controls for the quality of institutions in a country. Further, our results imply a plausible link between stages of development and returns to different levels of education. Finally, we calculate the minimum human capital level necessary to generate catch-up and find that virtually all countries are above that levela result that again emphasizes the importance of human capital in technology diffusion.

Suggested Citation

Di Liberto, Adriana and Pigliaru, Francesco and Chelucci, Piergiorgio, International TFP Dynamics and Human Capital Stocks: A Panel Data Analysis, 1960-2003 (February 22, 2011). Review of Income and Wealth, Vol. 57, No. 1, pp. 156-182, 2011, Available at SSRN: https://ssrn.com/abstract=1782510 or http://dx.doi.org/10.1111/j.1475-4991.2010.00379.x

Adriana Di Liberto (Contact Author)

Università di Cagliari and Crenos ( email )

via S. Ignazio 78
Cagliari, 09123
Italy

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Francesco Pigliaru

University of Cagliari and CRENoS ( email )

Viale S. Ignazio, 78
Cagliari I-09123
Italy
070-6753818 (Phone)
070-6753760 (Fax)

HOME PAGE: http://francescopigliaru@blogspot.com

Piergiorgio Chelucci

Universita di Cagliari ( email )

Cagliari, 09124
Italy

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