The Role of Production Progress and Human Capital in the Economic Growth of Latvia

Working Paper 3/2006

Abstract
The paper sets a goal to assess the significance of production progress and human capital for the Latvian economy and to estimate long-term growth rates of the country's economic development. The authors made an attempt to construct a production function using non-linear modelling. In order to improve the production function model for Latvia, the authors augmented the model by human capital approximation.

Keywords: production function, non-linear modelling, human capital, total factor productivity

JEL codes: C32, E23, J24, O47