Authors: D. Stamatakis
This article conducts an empirical investigation comparing human capital convergence in three country groups of significantly different development levels: G7, developed and less developed. The contribution of this work is that Human capital evaluation surpasses enrolment and/or attainment rates.
In addition to enrollment rates and government spending, alternative factors that determine the contribution of human capital are incorporated, such as book availability, researchers per capita and students per teacher. The results indicate moderate evidence of convergence among the three-country groups when “traditional” variables are included.
Nevertheless, the convergence “picture” becomes remarkably transformed in reference to unconventional human capital proxies; indicating the incapacity of traditional variables to capture the complexity of human capital creation, implying the existence of a “convergence trap” that emphasizes on ‘more’ qualitative variables -ignored by traditional variables, suggesting a possible scenario of worldwide polarization, ultimately reinforced by political factors.
Key Words: Economic Development, Growth, convergence, Developing Country, Developmental State, Innovation, Least Developed Country, human capital, education.
JEL Classification Codes: O3, O31, O33
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