Is there a positive relationship between the complexity of export structure and the amount of human capital?

Abstract

This paper examines the relationship between the increasing technological sophistication of exports and the amount of human capital. Using the ARDL model with heterogeneous coefficients (Mean Group ARDL) and its extension to CS-ARDL to account for cross-sectional dependence, we show that there is a stable positive relationship between the technological sophistication of exports (EXPY index and five export categories) and the human capital index in the short term. In addition, our research proposes estimates of regression coefficients using instrumental variables based on error heteroscedasticity.