The Effects Of Human Capital On Output Growth In ICT Industries: Evidence From OECD Countries

Information and Communication Technologies (ICT) play a central role in the transition to knowledge - based economies. In this paper they analyze the effects of human capital in fostering output growth in ICT manufacturing and services using data from a sample of twenty OECD countries over the period 1980-2002. The authors focus on within country between industry differences and estimate a system of simultaneous equations to account for simultaneous effects of human capital on physical investment and output growth. The results of the econometric analysis suggest that countries with a high human capital stock experienced faster output growth in ICT producing manufacturing and ICT using services.