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Original Articles

Human capital formation and US economic growth: a causality analysis

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Pages 329-331 | Received 21 Feb 1996, Published online: 02 Nov 2006
 

Abstract

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.

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