Human versus physical capital: issues of accumulation, interaction and endogeneity

The human capital and physical capital are inextricably linked. Increase in the physical capital is assumed to affect the stock of human capital and vice versa. This paper examines the impact of increase in human capital on accumulation of physical capital and vice versa for a panel of 237 countries during the period 1971–2015. We also analyzed the interaction between these two types of capitals after disaggregating the countries by their income...