Finding Externalities: An Empirical Study on the US Agricultural Industry

Chong-Uk Kim, Gieyoung Lim

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Department of International Economics & Law, Hankuk University of Foreign Studies, Seoul, Korea.

DOI: 10.4236/me.2013.49063                

Abstract

This paper searches for another empirical evidence supporting positive externalities from higher education. Using state-level US data on agriculture and IT industries, we find that there are positive spillover effects from more-knowledge intensive workers in the IT industry to less-knowledge intensive workers in the agricultural industry. According to our empirical findings, one well-educated IT worker generates and contributes $11,000 to the agricultural industry, which implies that the benefits of higher education are diffused from education beneficiaries to the other member of society.

Keywords

Externality; Spillover Effects; Higher Education

Conflicts of Interest

The authors declare no conflicts of interest.

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