Human Capital And The Changing Structure Of The Indian Economy

Amin, Mohammad; Mattoo, Aaditya

doi:10.1596/1813-9450-4576

Cited by 39 publications

(34 citation statements)

References 14 publications

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“…Without additional controls, Amin and Mattoo (2008) find a positive and significant effect of human capital (enrollments at the national level) on value added in total manufacturing and registered manufacturing. However, these statistically significant effects do not survive robustness checks or addition of full control variables.…”

Section: A Brief Theoretical Framework and The Review Of The Literaturementioning

confidence: 82%

Does Human Capital Matter in Manufacturing Value Added Development in Africa?

Anyanwu¹

2018

Asian Journal of Economic Modelling

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Article History JEL Classification:I21; J24; L60; O14; O55; O57. Very few countries have been able to grow and accumulate wealth without investing in their manufacturing industries. Also, a strong and thriving manufacturing sector precipitates industrialization. Unfortunately, manufacturing value added (MVA) development in Africa has been very low. This paper empirically assesses the role of human capital in MVA (% of GDP) in Africa for the period, 1990-2011, using the IV-SLS technique with year and sub-regional fixed effects. Our results indicate that not all human capital indicators are -born‖ equal with respect to MVA: Primary education has an inverted U-shaped relationship with MVA in Africa; secondary education has a negative significant relationship with MVA in the continent; and tertiary education has a significant positive association with MVA -tertiary education is good for increasing MVA in Africa. Other drivers have substantial relationship with African MVA. For example, economic development is significantly associated with MVA to the third degree polynomial, with negative leading coefficients. Other drivers with differential impacts include natural resources dependence, domestic investment, government consumption expenditure, trade openness, FDI stock, age dependency, credit to the private sector, social and political globalization, civil violence, and energy use intensity. We conclude with policy implications. Contribution/ Originality:This study is the first to empirically investigate the role of human capital in manufacturing value added development in Africa. It uses the most recent data to present new, interesting stylized facts. It empirically assesses the impact of human capital in manufacturing value added, drawing key lessons for the continent.

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Section: A Brief Theoretical Framework and The Review Of The Literaturementioning

confidence: 82%

Does Human Capital Matter in Manufacturing Value Added Development in Africa?

Anyanwu¹

2018

Asian Journal of Economic Modelling

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“…The universities are a significant driver of economic growth and can result in innovation and creation of patents. Amin and Mattoo (2008) established that in India highly skilled labour, measured by the enrollments in the tertiary sector, had a positively significant effect on the services sector growth.…”

Section: 1discussion On Well-being Indexmentioning

confidence: 99%

“…The findings showed that governance and economic policies both explain differential level of development across the states in India. Amin and Mattoo (2008) examined the role of human capital for 14 Indian states for the period 1980-2000. Their study noted that the availability of skilled workers had a greater impact on the services sector output than manufacturing or agriculture as it is more skill intensive.…”

Section: Review Of Literaturementioning

confidence: 99%

Economic reforms, growth and well-being: evidence from India

Arora

Ratnasiri

2014

Journal of Economic Policy Reform

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This study examined economic well-being of sub-national units in India since the economic reforms. For this purpose, the study constructed well-being index for 17 major states of India for the period 1981-2011 based on five broad dimensions. Our results showed that the economic well-being of states has declined since the reforms. The inter-state disparities have increased and the states (except Punjab and West Bengal) which performed well prior to the reforms continued to perform well in the post-reform years too. In addition, our regression results for the high well-being and low well-being states revealed that the reforms have benefitted more developed high well-being states, rather than low well-being states. While human capital was found significantly and positively related to per capita incomes in both groups of the states, financial development was positively related in high well-being states, but a negative association was visible in the low well-being states.

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“…In this paper, we not only bridge this gap in research but also challenge existing literature by suggesting that services growth in India may be 2 Some work has been done by Wu Yanrui (2004), Deepita Chakravarty (2005) and Amin & Mattoo (2008). equalizing in the long run. To substantiate our claim, we employ both standard growth regressions from the convergence literature and more recent panel unit root tests to find that per capita services are converging across India's states, even as per capita incomes are not.…”

Section: Introductionmentioning

confidence: 93%

Services Growth and Convergence: Getting India’s States Together

Shingal

2010

SSRN Journal

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India's success story in services is well documented at the national level, but similar literature does not exist for India's states. In this paper, we bridge this gap in research by looking at India's services growth at the sub-national level and in doing so, also challenge existing literature by arguing that this growth has positive implications for income distribution. The first interesting finding is that even as per capita income is not converging across India's states, per capita services are and we provide evidence for this both in terms of traditional measures of sigma-and beta-convergence and more recent panel unit root tests.Secondly, not only is external demand an important determinant of services value added at the state level, but this demand also emanates from all over the country rather than being concentrated in the neighbouring or richer states. This suggests that the benefits from services growth are being distributed more widely than may be perceived. JEL classification: C23, O11, O53, R11Key words: Services, India, states, growth, convergence, demand NCCR TRADE WORKING PAPERS are preliminary documents posted on the NCCR Trade Regulation website () and widely circulated to stimulate discussion and critical comment. These papers have not been formally edited. Citations should refer to a "NCCR Trade Working Paper", with appropriate reference made to the author(s). AbstractIndia's success story in services is well documented at the national level, but similar literature does not exist for India's states. In this paper, we bridge this gap in research by looking at India's services growth at the sub-national level and in doing so, also challenge existing literature by arguing that this growth has positive implications for income distribution. The first interesting finding is that even as per capita income is not converging across India's states, per capita services are and we provide evidence for this both in terms of traditional measures of sigma-and beta-convergence and more recent panel unit root tests. Secondly, not only is external demand an important determinant of services value added at the state level, but this demand also emanates from all over the country rather than being concentrated in the neighbouring or richer states. This suggests that the benefits from services growth are being distributed more widely than may be perceived.JEL classification: C23, O11, O53, R11

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Human Capital And The Changing Structure Of The Indian Economy

Abstract: on output in the service sectors. They do not find any such effect for the manufacturing sectors. The paper shows that the differential effect on services and manufacturing arises because service sectors are more skill intensive.

Cited by 39 publications

References 14 publications

Does Human Capital Matter in Manufacturing Value Added Development in Africa?

Does Human Capital Matter in Manufacturing Value Added Development in Africa?

Economic reforms, growth and well-being: evidence from India

Services Growth and Convergence: Getting India’s States Together

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