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Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/63559
Does human capital stimulate investment in physical capital? Evidence from a cost system framework (WP)
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The direct effect of human capital on economic growth has been widely analysed in the economic literature. This paper, however, focuses on its indirect effect as a stimulus for private investment in physical capital. The methodological framework used is the duality theory, estimating a cost system aggregated with human capital. Empirical evidence is given for Spain for the period 1980-2000. We provide evidence on the indirect effect of human capital in making private capital investment more attractive. Among the main explanations for this process, we observe that higher worker skill levels enable higher returns to be extracted from investment in physical capital.
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LÓPEZ-BAZO, Enrique and MORENO SERRANO, Rosina. Does human capital stimulate investment in physical capital? Evidence from a cost system framework (WP). IREA – Working Papers. 2007. Vol. IR07/17. ISSN 2014-1254. [consulted: 8 of June of 2026]. Available at: https://hdl.handle.net/2445/63559