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Abstract The study has taken into consideration spatial effects on growth models. Following Mankiw, et al. (1992), and using Solow-Swan growth model, where they investigated whether the Solow growth model is consistent with the international variation in the standards of living. In addition, it shows that an augmented Solow model that includes accumulation of human capital as well as physical capital provides an excellent description of the cross-country data. Ertur & Koch, (2007), as an augmentation of the Solow growth model, have imposed a spatial specification on the model, with accumulation of physical capital as an exogenous variable, in addition to total factor productivity. They have concluded the significance of including the spatial factor into consideration. Extending this work, the researcher has considered the augmented Solow growth model, where the accumulation of human capital is involved. The work is organized as follow; In Chapter one, definitions and terminologies, which are related to the paper also related equations, are provided. Different regression models have been addressed, i.e. simple regression model, multiple regression model, in addition to the spatial effects models, i.e. SLM, (spatial lag model), SDM, (spatial Durbin model), and SEM, (spatial error model), and other forms of spatial models, where the common factor among all these models is the W, (spatial weights matrix). In addition, properties of estimators, even typical or spatial ones, have been provided and investigated effects in the data set are investigated |