Human Capital Composition, Proximity To Technology Frontier And Productivity Growth

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The role of human capital composition has been given importance in the most recent endogenous growth models. Assuming that primary as well as secondary education is more suitable for imitation and higher education is more appropriate for innovation, this paper empirically investigates whether the contribution of human capital to productivity growth depends on the composition of human capital and the proximity to technology frontier in a panel of 87 sample countries over the period of 1970 to 2004. The sample is further divided into 28 high, 37 medium, and 22 low income countries to gain some insights into the importance of composition effects of human capital on growth in developing countries relative to their developed counterparts.