The Role of Entrepreneurial Human Capital as a Driver of Endogenous Economic Growth

Isaac Ehrlich, Dunli Li, Zhiqiang Liu
2017 Journal of Human Capital  
We model investment in entrepreneurial human capital (EHC)-the representative enterprise's share of production capacity allocated to investment in innovative industrial and commercial knowledge-as a distinct channel through which firmspecific human capital drives endogenous growth. Our model suggests that institutional factors supporting free markets for goods and ideas and higher-educational attainments of entrepreneurs and workers enhance endogenous economic growth by augmenting the
more » ... of investment in EHC rather than exclusively by themselves. We test these implications, using data from Global Entrepreneurship Monitor's Adult Population Survey of 63 countries over 2002-10, and find robust support for these hypotheses.
doi:10.1086/693718 fatcat:6j6ruta6nfarflqfrz7f5hhkia