The impact of accumulation, human capital and institutions on productivity growth in the advanced economies and developing countries

According to the authors' calculations, such an important determinant of economic progress as the share of total investments (TIs) in physical and human capital (PK and HK) in GDP, having amounted for the whole world at the stage of the 1st and 2nd industrial revolutions (IR) in 1800-1950 to 12 to14%, increased by 2016-2020 (stage of transition from the 3rd to the 4th IR) 3.5 times, exceeding 2/5 of the world GDP. By this key parameter, developing countries (DCs) as a whole have already surpassed the advanced economies (AEs; in 2016-2020 45% vs 43% of GDP). However, the share of investments in HK in TIs in the DCs is on the whole only half of that in the AEs (1/4 vs 1/2).

Calculations and models, made for the AEs, the main regions and a number of large DCs, revealed that (1) in the long term, an increase in the share of their TIs significantly and markedly affected dynamics of their per capita GDP (PCGDP), labor productivity (LP) and total factor productivity (TFP). Higher growth rates of LP in large DCs compared to large AEs in 2000-2020 were due respectively by 2/5 and 1/4 to much more substantial increase in the former of their TIs in GDP, as well as to the increase of their government effectiveness and the quality of institutions. (3) Almost fourfold superiority of the AEs over DCs in terms of PCGDP is brought about by 1/3; 2/5 and 1/5, respectively, by higher values in the former of their indicators of technological development, educational attainment of the population and the rule of law.

Keywords

advanced economies and developing countries, accumulation of physical and human capital, total factor productivity, government effectiveness, institutions, income inequality

Received

12.12.2021

Publication date

02.03.2022

Number of characters

41662

Cite

GOST	Meliantsev V. The impact of accumulation, human capital and institutions on productivity growth in the advanced economies and developing countries // Asia and Africa Today – 2022. – Issue 2 C. 14-28 [Electronic resource]. URL: https://asaf-today.ru/S032150750018791-2-1 (circulation date: 27.04.2024). DOI: 10.31857/S032150750018791-2
MLA	Meliantsev, Vitalii A "The impact of accumulation, human capital and institutions on productivity growth in the advanced economies and developing countries." Asia and Africa Today 2 (2022):14-28. DOI: 10.31857/S032150750018791-2
APA	Meliantsev V. (2022). The impact of accumulation, human capital and institutions on productivity growth in the advanced economies and developing countries. Asia and Africa Today (2), pp.14-28 DOI: 10.31857/S032150750018791-2

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