The neoclassical growth model was extended by Mankiw, Romer and Weil (1992) to estimate the level effects of additional factors like human capital. We suggest a further extension to capture their permanent growth effects. Time series data from Fiji are used to show that the growth effect of...

The neoclassical growth model was extended by Mankiw et al. (1992) to estimate the level-effects of human capital. We suggest a further extension to capture their permanent growth-effects. Time-series data from Fiji are used to show that the growth-effects of human capital, although small, are...

Compared to several cross-country studies on the determinants of growth, time series approaches are relatively few and limited in scope. However, time series studies are useful for country-specific policies. But in the recent time series works, with a few exceptions, ad hoc specifications of...