No abstract

This study tests and compares the two major approaches to the modelling of human capital in growth regressions, i.e. the Lucas and the Nelson-Phelps approach, in the context of developing country models with international knowledge spillovers. On balance, the results seem to favour the Nelson-Phelps approach. Using human capital stock variables instead of flow variables, a positive role for human capital in the absorption of international knowledge spillovers other than embodied R&D spillovers is confirmed. The results suggest the importance of distinguishing between different types of international knowledge spillovers, as well as between different human capital sub-categories.

This paper explores the applicability of the Nelson-Phelps approach to the modelling of human capital in economic growth for the sample of OECD countries. A case is made for confining the approach to the technology diffusion component and for combining it with the Lucas approach. For such a hybrid model, both the favoured interpretation of the Nelson-Phelps approach, as well as the Lucas approach, are supported by the evidence. The sensitivity of the findings is assessed with regard to the use of alternative human capital data sets, including quality (adjusted) measures, and with regard to data outliers.

No abstract

This paper contributes to the conflicting international evidence on the impact of information and communication technology (ICT) on labour productivity (LP) growth. We examine the link between ICT intensity and New Zealand's LP growth in 29 industries over the period [1988][1989][1990][1991][1992][1993][1994][1995][1996][1997][1998][1999][2000][2001][2002][2003], and over relevant sub-periods. After deriving an ICT intensity index to classify industries into 'more ICT intensive' and 'less ICT intensive', we compare LP growth rates for these two industry categories. We also employ dummy variable regression models to more formally test the relationships between ICT intensity and LP growth. The results prove sensitive to the time period specified. When breaks in the data series are taken into account, there is support for the view that LP growth of more ICT intensive industries has improved over time relative to that of other industries, even though overall LP growth was weak. Lack of LP growth per se, therefore, is not necessarily evidence against the beneficial productivity impacts of ICT.