Investing in children's human capital is one of the most critical investments a country can make to break the cycle of poverty and reap the demographic dividend. It can support the productivity and competitiveness of the future workforce and thus affect the growth trajectory of the country....

Market failures in human capital investment and innovation explain the main features of human development and economic growth. This is shown in a Schumpeterian multi-country model with technology transfer and trade. Thus, only institutions expanding investments in nutrition, education, health,...