6533b854fe1ef96bd12af0a6
RESEARCH PRODUCT
Complementarity between human capital and public infrastructure in industrial comparative advantage
Rimvie Enoc Kaboresubject
Public infrastructureJEL: F - International Economics/F.F1 - Trade/F.F1.F11 - Neoclassical Models of TradeIndustrial advantage comparativeJEL: H - Public Economics/H.H4 - Publicly Provided Goods/H.H4.H41 - Public GoodsHuman capitalJEL: O - Economic Development Innovation Technological Change and Growth/O.O4 - Economic Growth and Aggregate Productivity/O.O4.O47 - Empirical Studies of Economic Growth • Aggregate Productivity • Cross-Country Output Convergence[SHS.ECO] Humanities and Social Sciences/Economics and Finance[SHS.ECO]Humanities and Social Sciences/Economics and Financedescription
The article examines the role of public capital as an infrastructure service in the acquisition of industrial comparative advantages. To achieve this in this framework, we develop a theoretical model highlighting the complementarity between public and human capital as a mechanism of industrial development, and test this idea using sectoral panel data from 1999 to 2014 across 35 advanced and less advanced countries. Our results show that the sustainable acquisition of a comparative advantage in the production of industrial goods can only be guaranteed by accumulating public capital and human capital. It shows that public infrastructure can only generate industrialization when it is made available to the economy through human capital.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2021-10-06 |