Human capital and economic growth: Sweden 1870–2000

To reach higher economic growth, investment in human capital is also needed besides material investments. The purpose of this study is to determine the relationship between human capital and economic growth in Iran. The theoretical framework was designed based on this assumption that the total human capital employed in the economy is divided into two sections: Human capital with higher education and lack higher education. The data were collected from 1991 to 2006 and were analyzed using Ordinary Least Squares (OLS) model. The result of the analyses showed that there was significant relationship between human capital and economic growth. Together the independent variables explained 94% of the variance in the dependent variables. The remaining 16% was due to unidentified variables. In relation to that, we can conclude that explanatory power is high for the equation. It showed that one percent change in human capital rate lead to 58% in economic growth. Therefore human capital is regarded as an important factor in Iran's economic growth.

Individuals differ in both inherited and acquired abilities, but only the latter differ among countries and time periods. Human capital analysis deals with acquired capabilities which are developed through formal and informal education at school and at home, and through training, experience, and mobility in the labor market. Just as accumulation of personal human capital produces individual economic (income) growth, so do the corresponding social or national aggregates. At the national level, human capital can be viewed as a factor of production coordinate with physical capital. This implies that its contribution to growth is greater the larger the volume of physical capital and vice versa. The framework of an aggregate production function shows also that the growth of human capital is both a condition and a consequence of economic growth. Human capital activities involve not merely the transmission and embodiment in people of available knowledge, but also the production of new knowledge which is the source of innovation and of technical change which propels all factors of production. This latter function of human capital generates worldwide economic growth regardless of its initial geographic locus. Contrary to Malthus, economic growth has not been eliminated by population growth. Indeed, spatial and temporal patterns of the demographic transition appear to be congruent with economic growth. Human capital is a link which enters both the causes and effects of these economic-demographic changes.

Human capital and economic growth

The research on human capital, industrial structure upgrading and economic growth has always been one of the focus issues in academia. The existing literature is developed from different perspectives. First of all, the research on human capital mainly focuses on the research of human capital and economic growth, including the relationship between total human capital and economic growth, the relationship between human capital structure and economic growth, and the relationship between healthy human capital and economic growth. Secondly, the research on the upgrading of industrial structure includes the upgrading of industrial structure and economic growth, the influencing factors of the upgrading of industrial structure and so on. Among them, the influencing factors mainly include technological progress, market supply and demand, population, trade and government policies. Thirdly, the research on the impact of human capital on the upgrading of industrial structure mainly includes the matching of heterogeneous human capital and industrial structure, and the impact mechanism of human capital on industrial structure. This paper systematically reviews the development of literature on human capital, industrial structure upgrading and their relationship, and points out the problems existing in the literature, possible improvements in the future and several issues that may need attention in the future.

It is widely acknowledged that physical or natural resources are not the only source of growth in a country in this era of knowledge. Human capital is considered more important to define the type and rate of economic and social growth; so, making every effort to initiate human capital development at all levels is, therefore, crucial for a developing nation like Pakistan. In this context, the goal of this study is to determine the significance of important factors in Pakistan's growth of human capital. This study utilized employment, economic growth, technology, and wages as the independent variables while dependent variable was human capital (HC). Time series data is extracted from World Development Indicators (WDI) for the period of 1990 -2020. This study used a Vector Error Correction Model (VECM) to obtain short- and long-term empirical estimates while study employed Variance Decomposition to find relative contribution of modeled variables in the HC. Moreover, study employed Generalized Impulse Response Function (GIRF) to examine the response in HC in predicted 10 quarters. Results of this study indicate that employment, economic growth, technology, and wages all have a long-term positive impact on HC. Moreover, variance decomposition results indicate that, employment in industry (EIND), employment in services (ES), labour force participation total (LFPT), GDP, technology (TECH), and wages (W) have relative contribution 6.054%, 5.013%, 5.797%, 1.635%, 3.707%, and 15.179% respectively in HC in the long run period. This study suggest that policy makers should keep in view employment, economic growth, technology and wages for increasing Human Capital.

The purpose of this study was to investigate whether or not international remittances enhance economic growth in Ethiopia. Data for the period 1984-2017 from World Development Indicator and Ethiopia Ministry of Education annual statistical Bulletin was used. To investigate the impact international inflow remittances, foreign direct investment net inflow, inflation, general government final consumption expenditure, gross fixed capital formation, openness to international trade, human capital and population growth were also included. The study employed an aggregate Cobb-Douglas production function. Augmented Dickey Fuller tests were used to test for non Stationarity of the variables. It was found that all variables were integrated of order one. In addition, Johansen Cointegration test was employed to determine whether or not the variables were cointegrated. Error correction model was employed to estimate short – run and long run relationship using ordinary least square technique. The study found that in the long run General government final consumption expenditure, openness to international trade, human capital and Population growth where as in short run foreign direct investment net inflow had both positive and significant impact on economic growth. Additionally in the long run Inflow remittances, Inflation and foreign direct investment net inflows and in the short run inflation, Openness to international trade and Human capital (secondary school enrolment) had both negative and significant. This was in contrast with the expected result of positive and significance impact on economic growth rate. Gross fixed capital formation in long run where as remittance inflow, general government final consumption expenditure and human capital (secondary school enrolment) were found to be insignificant and no impact economic growth. Keywords: Remittances, Economic growth, Error Correction Model (ECM), Augmented Dickey Fuller (ADF) test DOI : 10.7176/JESD/10-17-01 Publication date :September 30 th 2019

The relevance of the study of the impact of knowledge management and human capital development at the labor market on economic growth is determined by the need to overcome imbalances in the socio-economic development of Ukraine. The article is dedicated to the identification of the main features of human capital development, to the assessment of its level in Ukraine, as well as to the factors identifying the impact of knowledge management and human capital development on economic growth. The development of human capital is considered to be the most important prerequisite for ensuring sustainable economic growth in Ukraine. The main features of the development of human capital as a resource for increasing productivity and, consequently, the growth of capitalization at the micro, meso and macro levels is the accumulated stock of production competencies and inseparable knowledge and abilities. The correlation of the quality of knowledge flow management and GDP is revealed, the density of which reflects the desire of highly developed markets to attract investment in human resources development and the formation of demand for new knowledge. The high level of human capital accumulation in Ukraine is confirmed by the analysis of the range of international rankings, including 32nd place in the Global Innovation Index 2020 with the rate of 37,7% for knowledge-intensive employment. It is noted that to ensure economic growth it is necessary to apply the knowledge gained by citizens in the labor market. It is proposed to assess the effectiveness of knowledge management in the system of human resources development in the labor market by measuring its contribution to the economic growth of the regions of Ukraine. It is recommended to choose the growth rates of production, labor productivity, and the elasticity of employment growth as targets. It was found that the growth of human capital has an impact on productivity growth and the elasticity of employment growth. As human capital grows, the elasticity of employment growth will decrease, which makes the economy of the regions less labor-intensive and leads to greater economic growth. The simulation allowed us to identify the main factors of the direct and indirect impact of human capital development on the level of economic growth. In the future, it is proposed to study the models of human capital development under crisis conditions and to develop strategic guidelines for knowledge management at the institutional level.

From the situation and trend of world economic growth, we found that human capital is playing a key role by taking the place of material capital and labor. This paper focused on the empirical work on the relationship between human capital and Hunan economic growth. We studied the factors of Hunan economic growth by considering material capital, labor and human capital. Based on the regression analysis, we found that human capital made positive contribution to Hunan economic growth, while its function mechanism was less strong than material capital and labor.

In this paper I elucidate the sources of growth of human capital in the course of economic development. On the supply side (Section 1) I include the growth of family income, urbanization, the demographic transition, and the rising cost of time.The supply side alone cannot explain the continuous growth of human capital as it implies a self limiting decline in rates of return below those in alternative investments. Such declines are offset by growing demands for human capital in the labor market. Growth of demand for labor skills is a function of capital accumulation and of technological changes. Evidence on this hypothesis is summarized in Section 2 and on supply responses to growing demand for human capital in Section 3. Changes in the skill and wage structures in the labor market are an important part of the evidence.The reciprocal relation between economic growth and the growth of human capital is likely to be an important key to sustained economic growth. A caveat applies to indirect effects of economic growth on family instability, which may lead to a deterioration of childhood human capital in some sectors of society.

Based on 1990-2007 data in Guangdong China, this chapter studies the correlation of environmental pollution, human capital, and economic growth. The results show that Guangdong’s economic growth deteriorates the environmental quality. Highly skilled human capital is one of the main engines of the economic growth and the growth promotes the human capital’s accumulation. Upgrading the human capital helps controlling pollutant emission and environmental pollution depresses the human capital accumulation. Furthermore, the authors hope that understanding the individual relationships between environmental pollution and human capital or economic growth will help the environmental protection authority or governments in China to make more effective and efficient regulations or policies to coordinate the country’s sustainable development.

The economic restructuring and rapid rise of the economy in Northeast China have resulted in a proliferation of new ventures. Studying the psychology of new entrepreneurs is conducive to understanding the relationship between human capital and economic growth. The work reported here aims to explore the impact of human capital on economic growth in Northeast China and the influencing factors of psychological capital of new entrepreneurs in the entrepreneurial process. Based on Cobb–Douglas production function, the relationship between labor, physical capital, or human capital and economic growth in Northeast China is analyzed by econometric methods, and a model of human capital and economic growth in Northeast China is constructed. Besides, a psychological capital intervention (PCI) model is proposed to develop the psychological capital of new entrepreneurs, and the psychological quality structure model of entrepreneurial entrepreneurs and its operation mechanism. The results of the empirical analysis demonstrate that the elasticity coefficient of human capital in Northeast China is 0.15902, five times smaller than that of labor and physical capital. Moreover, 70% of new ventures are willing to accept higher education. The fitting degree of using the PCI model to develop the psychological capital of new ventures is only 0.3%. In addition, the modified external environment PCI instead of the external environment PCI model has a huge operating potential in the macro-entrepreneurial environment. In conclusion, the impact of human capital on economic growth in the northeast is smaller than the impact of labor and material capital investment on regional economic growth. The development of human capital and research on the composition and mechanism of psychological quality of entrepreneurial entrepreneurs are of significant theoretical and practical values to promote the economic growth in the northeast.

Intuition thus tells us that the relationship between human capital and economic growth at the regional level is more complex compared to the national level. The aim of this article is to survey the theoretical and empirical approaches of the relationship between human capital and economic growth at the regional level. We selected all articles in top scientific journals whose authors used the term human capital in their keywords. The total sample consists of 21 articles from the Journal of Economic Geography, 46 articles in Regional Studies, 35 articles in Papers in Regional Science and 4 articles in Economic Geography. The theoretical and empirical research at the regional level highlights the role of interregional migration, and the role of human capital in externalities in dense urban agglomerations. The greater complexity of the economic processes associated with the accumulation of human capital in the regions requires policies tailored to the needs of the regions.

This study used human capital and economic growth in Pakistan economy. Income per capital, health and education are the important part for measuring development success in human capital. Housing, education and health play an important role in economic growth. Income per capital alone cannot boost the economic growth and income is not sufficient indicator for human capital and economic growth. Services are very important for economic growth. The role of human capital and technology is very important part for economic growth and power of economic growth. Any country which is unable to develop skills, knowledge, and training to their people is unable to achieve economic growth and development. In this study gross fixed capital (GFC), saving, Inflation, Human capital (HC) Labor force (LF) and foreign direct investment FDI) used as a variables. The data is collected from 1974-2014 time periods. This study is based on time series analysis. In which education is a necessary tool for economic growth. Education enhances the productivity and efficiency of the individuals. In this study ARDL ADF, unit root techniques are used to analyze this study.

The purpose of this study is to analyze the causal relationship between trade, human capital accumulation and economic growth and to provide implications for Korean manufacturing industry. The results of panel Granger causality analysis using panel VAR model are as follows. The export, human capital, ‘export and human capital interaction term’ have a causal relationship to economic growth. Economic growth, human capital is the cause of exports. However, Economic growth has no causal on human capital, and exports have causality to human capital but have low statistical significance. Import has Grnager causal relationship with economic growth. Economic growth also has a causal relationship with imports. Therefore, there is a bi-directional causal relationship between import and economic growth. Imports have a causal relationship with human capital and have a higher significance level than those of exports. And the interaction terms of exports and imports with human capital have causal relations with economic growth. This implies that trade can affect human capital and ultimately economic growth through income distribution. But economic growth does not cause human capital accumulation. These results show that human capital is a major causal factor for export, import, and economic growth, and policy efforts are needed to foster human capital for economic growth.

Has the Portuguese economy benefited from tertiarization in terms of aggregate productivity performance? Did human capital availability play a role in this expansion of the services sector? To answer these two research questions, we investigate the existence of causality among services sector expansion, human capital, and aggregate productivity for the period 1970–2006 in the Portuguese economy based on the estimation of VAR models and impulse response analysis. We distinguish between the contributions of five different services sub-sectors that can be broadly classified as either traditional personal services or modern progressive services. The evidence suggests bi-directional causality between services sub-sectors employment shares and aggregate productivity. Across services sub-sectors, community social and personal services, that include health care and education activities, seem to be the most influential sector, followed by finance, insurance, real estate and business services, making both a positive and lasting contribution to aggregate productivity. Although only indicative, this evidence points to the relatively low weight of modern progressive services sectors in Portugal, together with a relatively less important role for some traditional personal services sub-sectors that can be sources of human capital, as candidate explanations for the slowdown in aggregate productivity growth over the period under analysis. The causality analysis did not allow us to confirm the role of human capital in driving the expansion of services subsectors, although the impulse response analysis points to a positive impact on aggregate productivity and the expansion of finance, insurance, real estate and business services and community social and personal services.