THE ROLE OF HUMAN-CAPITAL IN ECONOMIC-DEVELOPMENT EVIDENCE FROM AGGREGAT CROSS-COUNTRY DATA

Using cross-country estimates of physical and human capital stocks, we run the growth accounting regressions implied by a Cobb-Douglas aggre gate production function. Our results indicate that human capital ente rs insignificantly in explaining per capita growth rates. We next spec ify an alternative model in which the growth rate of total factor prod uctivity depends on a nation's human capital stock level. Tests of thi s specification do indicate a positive role for human capital.