The Open Economics Journal

2009, 2 : 80-86
Published online 2009 November 05. DOI: 10.2174/1874919400902010080
Publisher ID: TOECONSJ-2-80

Technology, Human Capital and Growth: Further Evidence from Threshold Cointegration

Nicholas Apergis
Department of Banking and Financial Management, University of Piraeus, Piraeus, Greece.

ABSTRACT

This paper assesses whether the linkages between R&D, human capital and productivity growth in a panel of EU manufacturing industries over the period 1980-2002 are affected by a critical level of human capital. To employ our data in an efficient manner, the study makes use of a dynamic threshold-based analysis, which determines endogenously the sample splitting procedure. The estimates indicate the presence of a threshold level based on the size-level of human capital. Countries with human capital levels above the threshold receive higher productivity growth benefits from higher R&D.

JEL Classification: O40; L60; C23.

Keywords:

Productivity growth, R&D, Human capital, Threshold effects, Manufacturing industries, EU countries, Panel data.