Technology, Human Capital and Productivity Growth: Should We Care About Threshold Effects? Evidence from a Panel of EU Industries

19 Pages Posted: 1 Jun 2007

Date Written: February 2007

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 1980-2000 are affected by a critical level of human capital. To employ our data in efficient manner, the study makes use of a dynamic panel-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.

Keywords: productivity growth, R&D, human capital, threshold effects, manufacturing industries, EU countries, panel data

JEL Classification: O40, L60, C23

Suggested Citation

Apergis, Nicholas, Technology, Human Capital and Productivity Growth: Should We Care About Threshold Effects? Evidence from a Panel of EU Industries (February 2007). Available at SSRN: https://ssrn.com/abstract=989961 or http://dx.doi.org/10.2139/ssrn.989961

Nicholas Apergis (Contact Author)

University of Piraeus ( email )

Karaoli and Dimitriou 80
80 KARAOLI & DIMITRIOU STREET
Piraeus, Attiki 18534
Greece

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