Governance thresholds and the human capital–growth nexus
Journal article
Authors | Apergis, Nick, Mustafa, Ghulam and Khan, Muhammad |
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Abstract | The literature that explores the relationship between human capital and economic growth has produced mixed results. It highlights the puzzle on the correlations between human capital and economic growth. This study contributes to this debate by offering an explanation of the puzzling effects. Using the threshold model proposed by Kremer et al. (2013), the results document that there is a threshold effect in the human capital–growth nexus. The findings illustrate that the relationship between human capital and economic growth is weakly positive up to a certain threshold level of governance; however, the relationship turns out to be positive once the threshold level has been achieved. The mixed evidence on the human capital–growth relationship can be explained through institutional quality differences. The findings recommend that better governance is complementary to contribute to the productive use of human capital in achieving higher economic growth. |
Keywords | Human capital; Economic growth; Governance; Nonlinear modeling |
Year | 2021 |
Journal | Journal of Economic Studies |
Publisher | Emerald |
ISSN | 0144-3585 |
Digital Object Identifier (DOI) | https://doi.org/10.1108/JES-03-2021-0150 |
Web address (URL) | https://www.emerald.com/insight/content/doi/10.1108/JES-03-2021-0150/full/html?skipTracking=true |
hdl:10545/626058 | |
Output status | Published |
Publication dates | 20 Oct 2021 |
Publication process dates | |
Deposited | 26 Oct 2021, 14:11 |
Accepted | 22 Sep 2021 |
Contributors | University of Piraeus, Piraeus, Greece, University of Derby, Queen Mary University of London, UK and IQRA University, Islamabad, Pakistan |
File | File Access Level Restricted |
File | File Access Level Restricted |
https://repository.derby.ac.uk/item/92224/governance-thresholds-and-the-human-capital-growth-nexus
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