The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium

Page 118

100 THE CHANGING WEALTH OF NATIONS

TABLE 5.3

Human Capital and Country Fixed Effects in Selected Countries, Average 1995–2005 2005 US$

Country

Intangible Capital ($/capita)

Human Capital Index

Human Capital ($/capita)

Fixed Effects ($/capita)

Residual ($/capita)

385,939

4.9

455,093

..

69,154 116,181

G7 countries Canada France

441,169

3.5

324,988

..

Germany

413,737

4.3

399,283

..

14,454

Italy

377,822

3.4

312,546

..

65,276

Japan

364,893

4.1

380,438

..

15,545

United Kingdom

499,841

4.0

375,106

..

124,735

..

98,500

United States

562,835

5.0

464,335

Brazil

52,822

2.6

237,230

198,561

China

6,662

3.0

281,606

288,846

BRICS

4,441

2.5

236,169

248,193

14,407

3.7

343,350

347,306

58,802

2.4

226,898

184,072

4,341

2.0

189,857

197,557

Ghana

4,660

2.2

207,742

217,626

Haiti

7,456

2.0

186,968

188,202

Kenya

5,219

2.1

194,752

200,795

Nepal

1,872

2.0

186,030

197,573

Senegal

9,571

2.2

199,972

204,724

Tajikistan

2,633

4.1

380,434

395,415

Uganda

1,253

1.9

172,075

182,969

Vietnam

4,196

2.6

245,243

271,825

Zambia

6,292

2.0

187,064

193,728

India Russian Federation South Africa

Low-income countries (selected) Bangladesh

Source: Authors’ calculations. Note: .. statistically insignificant coefficient.

in economic output. The basic approach is to estimate a production function, using panel or cross-sectional data for countries, to relate output to factor inputs. We follow this tradition using our panel data set on produced, natural, and intangible wealth. First we regress the logarithm of output against the logarithms of the production factors. As a variant, we also use our calculated human capital


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