In this study we test whether social capability promotes catching up, the hypothesis that there is technological spillover from leaders to followers. A simple model that captures the hypothesized interaction is presented and tested on an extended sample of countries. The stock of human capital...

Does government spending have a positive or negative effect on economic growth? The results of earlier empirical studies give mixed results. In this study we suggest a new method for testing the effect of different kinds of government expenditure on productivity growth in the private sector. The...