Amin, MohammadMattoo, Aaditya2012-05-292012-05-292008-03https://hdl.handle.net/10986/6541Using panel data for the fourteen major states of India over the 1980-2000 period, the authors estimate the effect of human capital endowment on the performance of the state economies. They find that greater availability of skilled workers had a positive and significant impact on output in the service sectors. They do not find any such effect for the manufacturing sectors. The paper shows that the differential effect on services and manufacturing arises because service sectors are more skill intensive.CC BY 3.0 IGOABSOLUTE VALUEAGGREGATE LEVELAGGREGATE OUTPUTAGRICULTUREBASIC EDUCATIONBUSINESS SERVICESCAPITAL FLOWSCOMMERCECOUNTRY REGRESSIONSDATA COVERAGEDATA LIMITATIONSDEFLATORSDEPENDENT VARIABLEDESCRIPTIVE STATISTICSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDEVELOPMENT RESEARCHDISAGGREGATED LEVELE-MAILECONOMETRIC ANALYSISECONOMETRICSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC INFORMATIONECONOMIC PERFORMANCEECONOMIC RELATIONSECONOMIC STUDIESECONOMICS RESEARCHELECTRICITYEMPIRICAL RESULTSEMPLOYMENT EQUATIONSENDOGENOUS VARIABLESENDOWMENTSENROLLMENTENROLLMENTSERROR TERMESTIMATED COEFFICIENTESTIMATED COEFFICIENTSESTIMATION RESULTSEXPENDITUREEXPLANATORY VARIABLESEXTERNALITIESFINANCIAL BURDENFIXED EFFECTSGDPGDP DEFLATORGDP PER CAPITAGROWTH PATTERNGROWTH RATESHEALTH CAREHIGHWAYHUMAN CAPITALHUMAN RESOURCEHUMAN RESOURCE DEVELOPMENTINCREASING RETURNSINCREASING RETURNS TO SCALEINTERNATIONAL BANKLABOR MARKETLAGGED DEPENDENTLAGGED VALUESLITERACY RATESLONG RUNLONG-RUN IMPACTMANUFACTURINGMANUFACTURING INDUSTRYMEDIUM TERMMISSING DATANATIONAL HIGHWAYSOUTPUT PER CAPITAPHONEPHYSICAL INFRASTRUCTUREPOLICY RESEARCHPRIVATIZATIONPRODUCTIVITYPRODUCTIVITY GROWTHREAL ESTATEREDUCED FORM EQUATIONRELATIVE IMPORTANCERELATIVE ROLERESULTRESULTSROADROADSSECTOR REFORMSSERIAL CORRELATIONSIGNIFICANT EFFECTSIGNIFICANT IMPACTSKILLED LABORSKILLED WORKERSSOCIAL WELFARESTANDARD DEVIATIONTELECOMTELECOMMUNICATIONTIME PERIODTOTAL OUTPUTTRADE LIBERALIZATIONTRANSMISSIONTRANSPORTTRANSPORT EQUIPMENTTRANSPORT SERVICESTRANSPORTATIONVALUE ADDEDWEBWHITE PAPERWorld Bank10.1596/1813-9450-4576