CONVERGENCE AND ECONOMIC GROWTH CONSIDERING HUMAN CAPITAL AND R&D SPILLOVERS

Abstract

In the recent growth literature, the accumulation of human capital and R&D have gained a central role. This study tries to narrow the bridge between the fields of regional convergence theory, economic growth and human capital. Unlike traditional economic growth theories, which tend to focus on exogenous comparative advantage or technological differences among regions as causes for growth, regional economic growth emphasizes the roles of increasing returns to scale in production, human capital and R&D in determining the growth of economic activities. In particular, I will consider the interaction of regional human capital and R&D economics following the recent work in economic growth and convergence. Using the recent developments in economic growth, the study centers on the regional convergence pattern in Mexico emphasizing the effects of human capital, R&D and interregional spillovers on growth. The findings suggest the existence of sorne human capital and bounded knowledge spillovers across regional states in Mexico.