This paper proposes a sophisticated empirical analysis on the presence and the nature of interaction effects between human capital and trade openness in the processes of productivity growth. According to our results, this interaction is not always linear. In particular, we will see how trade openness has a positive impact on productivity growth only above a minimum level of human capital. That is, less developed countries may take advantage of trade liberalization only after having reached a certain level of human capital. Obviously this will imply that it is not indifferent for a less developed country to decide first for a trade liberalization policy or for an education development policy.
Trading Knowledge
BASSETTI, THOMAS
2009
Abstract
This paper proposes a sophisticated empirical analysis on the presence and the nature of interaction effects between human capital and trade openness in the processes of productivity growth. According to our results, this interaction is not always linear. In particular, we will see how trade openness has a positive impact on productivity growth only above a minimum level of human capital. That is, less developed countries may take advantage of trade liberalization only after having reached a certain level of human capital. Obviously this will imply that it is not indifferent for a less developed country to decide first for a trade liberalization policy or for an education development policy.Pubblicazioni consigliate
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