Age-structured Human Capital and Spatial Total Factor Productivity Dynamics

Mishra, Tapas; Jumah, Adusei and Parhi, Mamata (October 2008) Age-structured Human Capital and Spatial Total Factor Productivity Dynamics. Former Series > Working Paper Series > IHS Economics Series 226


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Abstract: This paper models total factor productivity (TFP) in space and proposes an empirical model for TFP interdependence across spatial locations. The interdependence is assumed to occur due to age-structured human capital dynamics. A semi-parametric spatial vector autoregressive framework is suggested for modeling spatial TFP dynamics where the role of demographic state and technological change are explicitly incorporated in the model to influence their spatial TFP co-movements. Empirical scrutiny in case of Asian countries suggests that cross-country human capital differences in their accumulation and appropriation pattern significantly influenced TFP volatility interdependence. The finding of complementarity in TFP in spatial locations calls for joint policy program for improving aggregate and individual country welfare.;

Item Type: IHS Series
Keywords: 'Total factor productivity' 'Spatial growth' 'Non-linearity' 'Human capital' 'Age-structure' 'Semi-parametric VAR'
Classification Codes (e.g. JEL): C14, C31, E61, N10, O30, O47
Date Deposited: 26 Sep 2014 10:38
Last Modified: 27 Sep 2019 06:16
ISBN: 1605-7996

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