Title: Technology, human capital, and economic growth: evidence from high income OECD countries

Authors: Kemal Erkişi; Güler Sağlam

Addresses: Department of Economics, Antalya Bilim University, Antalya, Turkey ' Department of International Trade and Finance, Beykoz University, Istanbul, Turkey

Abstract: In this study, technology in the form of domestic and foreign technology and human capital in the form of education and health are included in the model, and their effects on growth are examined. The education variable is further broken down into elementary, secondary, and tertiary levels. The research covers high-income OECD countries over the period 1990-2020. In the analysis, the FGLS estimator, which resists to heteroscedasticity, cross-section dependence and panel-specific autocorrelation, is employed. Results indicate that a unit increase in foreign technology increases national income by 0.037%, and a domestic technology by 0.023%. Foreign technology has a greater impact on economic growth than domestic technology. Although primary education did not have a significant effect on growth, secondary education increased growth by 0.069% and tertiary education by 0.30%. The effect of physical capital on economic growth (0.22%) is lower than tertiary education.

Keywords: human capital; technology; economic growth; education; health; feasible generalised least squares; FGLS; OECD countries; foreign technology; domestic technology; physical capital.

DOI: 10.1504/JIBED.2022.130382

Journal for International Business and Entrepreneurship Development, 2022 Vol.14 No.4, pp.487 - 506

Received: 11 Dec 2022
Accepted: 05 Jan 2023
Published online: 18 Apr 2023 *

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