Abstract
This paper investigates the impact that human capital, information and communication technology (ICT) and foreign direct investment (FDI) have on GDP. Cross-sectional data from a set of 20 OECD and 24 non-OECD countries in 2007 are analysed employing data envelopment analysis (DEA) and classification and regression tree (CART) techniques. The paper illustrates that the level and quality of access to ICT infrastructures plays an important role in determining a country's level of technical efficiency. The paper also indicates the presence of a catch-up process, led by technological innovation, on the part of emerging countries.
Highlights
Numerous empirical papers have investigated the factors that contribute to economic growth determinants
The result of classification and regression tree (CART) is a tree consisting of a root node that includes all the observations, some parent nodes which may be split further and, at the end of the tree, some terminal nodes that are characterized by a predicted average value of the dependent variable [50]
This paper uses the non-parametric data envelopment analysis (DEA) technique and CART methodology to examine the main factors debated in the literature about economic growth in order to determine which of these most affect the technical efficiency of countries
Summary
Numerous empirical papers have investigated the factors that contribute to economic growth determinants. Barro [3] has noted that economics has long been interested in the importance of skills in the workforce, and that this history helps to explain a number of the issues that are pertinent to the analysis of economic growth today Another element influencing GDP, which is strongly linked to the two factors mentioned above, is a country’s www.intechopen.com. In the present paper, data from 20 OECD and 24 non-OECD countries are employed to investigate the impact that FDI, ICT and human capital have on GDP.
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