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• W2555926907 abstract "Human capital measures (schooling) are poorly significant in explaining growth for developing countries. An explanation is that increases in human capital have no significant effect on growth if this human capital is misallocated and underemployed. In a simple two-sector model of a small open economy, we show that the effect of education on growth is more significant if the country has entered into the structural change that raises the demand for skilled labour. We give a special attention to the role of entrepreneurs in the increase in the demand for skills in the modern sector and propose to link it to the literature on export discoveries. We then derive an econometric specification from a simple two-sector model of growth with structural change and different levels of skills. From a sample of emerging economies including five MENA countries, we provide econometric evidence that the reduction in the traditional share of GDP and an increased amount of discoveries in export both have a positive influence on growth rates. We also show that if the drop in traditional activities is to matter for growth, it is less through the skill reallocation from traditional to modern activities, even though export diversification is a factor of higher growth, than through the enhancement of the effect human capital has on the growth of GDP. Then, if the reallocation of skills is to matter, it is more probably through shifts among the industrial sector, from the older to the newer activities than across sectors, from the traditional to the modern." @default.
• W2555926907 created "2016-11-30" @default.
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• W2555926907 date "2010-01-01" @default.
• W2555926907 modified "2023-09-27" @default.
• W2555926907 title "GDRI DREEM - GDR Développement et transition Le Caire, 13-14 décembre 2010 Human capital, structural change and growth: the role of export discoveries and entrepreneurship" @default.
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