Working Paper: NBER ID: w16167
Authors: Ashish Arora; Surendra K. Bagde
Abstract: Though previous studies have noted the role of skilled labor in the growth of the Indian software industry, they have not empirically investigated its importance. In this study we study the effect of the supply of engineers, measured by engineering baccalaureate capacity, on the regional growth of the software exports between 1990 and 2003. We find significant effect of engineering baccalaureate capacity on the growth of software exports even after controlling for other relevant factors. This conclusion is especially interesting because much of this capacity is due to private, rather than publicly supported colleges, and testifies to the private willingness to invest in human capital even in poor countries.
Keywords: Human Capital; Software Industry; India; Engineering Education; Regional Growth
JEL Codes: I21; I28; J24; O15; O53
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| private engineering colleges early entry (R42) | engineering baccalaureate capacity (D29) |
| engineering baccalaureate capacity (D29) | software exports (F10) |
| private engineering colleges early entry (R42) | software exports (F10) |