Human Capital Contributions to Economic Growth in India: An Aggregate Production Function Analysis
Published: 2009
Author(s) Name: Jandhyala Viswanath, K L N Reddy & Vishwanath Pandit
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Abstract
Education is a merit as well as a
public good and is associated with
large sets of externalities which are
often indirect, invisible and nonquantifiable.
The modern theory of
endogenous growth has brought
this out very prominently. Using an
aggregate production function
approach, the present study
estimates the contributions of
human capital and physical capital
to economic growth in India using
cross section data for 26 Indian
states and union territories relating
to the years 1995-96 and 1998-99.
Several alternative specifications
of functional forms are estimated
and most of them gave robust
results. The important finding that
emerges from this study is that a
strong positive relationship exists
between investments in human
capital and economic growth.
Keywords : contributions of
human capital and physical capital, Economic growth in India
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