The effect of human capital on the trade-growth nexus: A dynamic panel threshold analysis

Tunisia - 1 December 2024

Trade topics: Economic Growth, International Trade

This paper analyzes the nonlinear effect of trade openness on economic growth over a sample of developed and developing countries during the period 1980–2020. Using a Dynamic Panel Threshold Model advanced by Seo and Shin (2016), and Seo et al., (2019), the results prove the existence of a human capital's threshold level above it openness to trade has a positive effect on economic growth. More precisely, trade can enhance economic performance if the human capital is high, otherwise, the effect is negative.

Published in "Research in Economics", Volume 78, Issue 4, December 2024, 100988
https://doi.org/10.1016/j.rie.2024.100988

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