HUMAN CAPITAL DISTRIBUTION,GROWTH AND TRADE |
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Authors: | Cheng‐Te Lee Deng‐Shing Huang |
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Institution: | 1. Department of International Trade, Chinese Culture University, , Taiwan;2. Institute of Economics, Academia Sinica, , Taiwan |
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Abstract: | Distribution differences in human capital matter for a country's growth and trade. While the existing literature considers only the diversity difference in talent distribution, we argue that the kurtosis difference is also an important factor. In a two‐sector equilibrium growth model, where the production function is supermodular for the consumption‐good sector and submodular for the R&D sector, we prove that the diversity effect and kurtosis effect are opposite to each other. A country endowed with more diverse but leptokurtic talent distribution may have lower growth rate and import submodular goods, opposite to the conventional result from considering only the diversity difference. |
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Keywords: | diversity growth kurtosis trade F11 O41 |
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