Valuable skills, human capital and technology diffusion

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Messinis, George and Ahmed, Abdullahi D (2008) Valuable skills, human capital and technology diffusion. Working Paper. Victoria University, Melbourne, Australia.


This paper develops new estimates of human capital as a latent index of valuable skills for seventy countries over the period 1970-2003. The index is used to examine three models of technology diffusion and extend Benhabib and Spiegel (2005) to account for heterogeneity, complementarity between capital and skill (CSC) and skilled and unskilled labour (SNC), and skill-biased-technical-change (SBTC). The evidence shows that (1) the skills-education gap has widened in Africa, South America, Eastern Europe and most developed OECD countries; (2) skills facilitate innovation and technology diffusion; (3) the CSC, SNC and SBTC hypotheses are confirmed, and (4) international scientific collaboration greatly enhances the absorptive capacity of human capital.

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Additional Information
Item type Monograph (Working Paper)
DOI No. 38
Subjects Historical > FOR Classification > 1402 Applied Economics
Historical > Faculty/School/Research Centre/Department > Centre for Strategic Economic Studies (CSES)
Keywords human capital, skills, growth, technology diffusion, CSC, SBTC
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