Human capital, financial development, economic growth, translog production function In this paper we evaluate the contributions of human capital and financial development to economic growth in a panel of 82 countries covering 21 years. The main innovations in the paper stem from the fact that we use a translog production function as a framework for estimating the relationships among economic growth and factor inputs. The factor inputs considered are: labour, physical capital, human capital, and a monetary factor (money or credit): human capital deriving from endogenous growth theory, and the monetary deriving from the theory of money in the production function. The translog production function enables a richer specification of the relationships among growth and factor inputs, than the more commonly used Cobb-Douglas approach, as it allows for interactions among factor inputs. We find significant evidence of such interactions, suggesting that studies using the Cobb-Douglas, or those which otherwise ignore such interactions are likely to be misleading. Our results suggest that financial development is a
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