Empirical Analysis of the Technological Human Capital, for Exogenous Solow Economic Growth

Abstract

This study explains human capital (Technological Labor) and technological intervention in the Solow model and its descendants. This study illustrates one of the major applications of the Solow model, an expose that incorporates human capital, moreover it explains the role of human capital and technological adaptation using the empirical evidence of human capital and economic growth in the world. This study is based on a secondary data method while secondary data is also taken for the analysis and reports. This means that both quantitative and qualitative methods are meaningfully integrated and present in the discussion. Under the results of this study, empirical evidence shows that human capital and physical capital are the key factors of productivity growth in the world. Therefore, the average investment rates in the five richest countries are only 2.9 times larger than the average investment rates in the five poorest countries. Moreover, education or years of schooling has contributed to the higher rate of investment. Because of that, the average educational attainment in the five richest countries is about 8.1 years greater than the average educational attainment in the five poorest countries. Finally, Human Capital in Solow Model affects the economic and technological aspects in cross country differences. It is important to understand which of these proximate cases are significant for economic growth performances. Therefore, if a country’s human capital and technology usage is higher, that results in improving its GDP growth.