Nonlinear Effects of Human Capital on TFP: Evidence from Eight ASEAN Countries

Nonlinear Effects of Human Capital on TFP: Evidence from Eight ASEAN Countries

The purpose of this paper is to investigate the nonlinear relationship between TFP growth rate and human capital in 8 ASEAN countries over the period from 1990 to 2014. Using two-way fixed-effect Benhabib-Spiegel model, this study finds that human capital, denoting the innovation term, is negatively...

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Veröffentlicht in:Journal of economic cooperation & development 2017, Vol.38 (4), p.123-153
Hauptverfasser: Yuhong, Du, Nor, Abu Hassan Shaari Md, Sarmidi, Tamat
Format: Artikel
Sprache:eng
Schlagworte:
Developing countries
Economic development
Economic growth
Economic models
Education
Generalized method of moments
Growth models
Growth rate
Human capital
Hypotheses
Innovations
LDCs
Literature reviews
Political economy
Production functions
Productivity
Social sciences
Studies
Technology
Thresholds
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Zusammenfassung:The purpose of this paper is to investigate the nonlinear relationship between TFP growth rate and human capital in 8 ASEAN countries over the period from 1990 to 2014. Using two-way fixed-effect Benhabib-Spiegel model, this study finds that human capital, denoting the innovation term, is negatively related with TFP growth rate. Meanwhile, the catch-up term, denoted by the interaction between human capital and the technology gap, has a positive effect on TFP growth rate. This study further uses threshold-seeking procedure proposed by Hansen (1999) and finds that there are two thresholds in the innovation term and a single threshold in the catch-up term, i.e. in terms of human capital.
ISSN:1308-7800