Economic growth In the long run

Tamura, Robert and Dwyer, Gerald P. and Devereux, John and Baier, Scott (2016): Economic growth In the long run.

Abstract

We present new data on real output per worker, schooling per worker, human capital per worker, real physical capital per worker for 168 countries. The output data represent all available data from Maddison. The physical capital data represent all available data from Mitchell. One major contribution is a new set of human capital per worker, the foundation of which comes mostly from Mitchell. We provide original estimates of schooling per worker & per young worker. We find strong support for intergenerational accumulation of human capital with spillovers. With our preferred measure of human capital, over 90 percent of the variation in long run growth can be explained by variation in the growth of inputs per worker, and less than 10 percent from variation in TFP growth. Furthermore between 55% and 70% of the variation in log of output per worker can be explained by variation in the log input levels, and less than half of the log level output per worker variation is explained by variation in log TFP levels. These results are robust to different time periods, and different parameter values on the human capital accumulation technology. We find positive correlation with micro based cross country estimates of human capital, particularly those provided by Hendricks (2002) and Schoellman (2012).

• Item Type: MPRA Paper
• Language: English
• Keywords: economic growth, human capital, variance decomposition
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity

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