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Human capital formation and US economic growth: A causality analysis
journal contributionposted on 1997-01-01, 00:00 authored by F In, Chris DoucouliagosChris Doucouliagos
In this paper, Granger causality tests are applied to a new data set on human capital formation and US private sector GDP. The study is the first to test for causality between human capital formation and economic growth. It employs an error correction mechanism and is estimated through canonical cointegration regression. The results show strong evidence of casuality from human capital formation to private sector GDP and vice versa.