Nonlinear effects of human capital on TFP: Evidence from eight ASEAN countries

Du Yuhong, Abu Hassan Shaari Md Nor, Tamat Sarmidi

Research output: Contribution to journalArticle

Abstract

The purpose of this paper is to investigate the nonlinear relationship between TFP growth rate and human capital in 8 ASEAN countries over the period from 1990 to 2014. Using two-way fixed-effect Benhabib-Spiegel model, this study finds that human capital, denoting the innovation term, is negatively related with TFP growth rate. Meanwhile, the catch-up term, denoted by the interaction between human capital and the technology gap, has a positive effect on TFP growth rate. This study further uses threshold-seeking procedure proposed by Hansen (1999) and finds that there are two thresholds in the innovation term and a single threshold in the catch-up term, i.e. in terms of human capital.

Original languageEnglish
Pages (from-to)123-153
Number of pages31
JournalJournal of Economic Cooperation and Development
Volume38
Issue number4
Publication statusPublished - 1 Jan 2017

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ASEAN
human capital
evidence
innovation
Nonlinear effects
Human capital
interaction
TFP growth
Innovation
Catch-up

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Political Science and International Relations

Cite this

Nonlinear effects of human capital on TFP : Evidence from eight ASEAN countries. / Yuhong, Du; Md Nor, Abu Hassan Shaari; Sarmidi, Tamat.

In: Journal of Economic Cooperation and Development, Vol. 38, No. 4, 01.01.2017, p. 123-153.

Research output: Contribution to journalArticle

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