Human Capital Impact for Sustainable Economic Growth

Abstract

Sustainable economic growth is one of three essential components of the United Nations sustainable development concept together with the society and environment. The up going urbanization force human and economic development. The human capital is one of the important components for growing industrialization, innovations, scientific research, education and formation of the higher skilled workers. The main aim of the study is to provide an analysis of the human capital impact on sustainable economic growth. We used the methods of econometric modelling and cluster analysis on the base of data collections: United Nations Development Programme and the World Bank World Development Indicators (WDI). Cluster analysis was done for the Human Development Index (HDI) and WDI for countries with different levels of social and economic development together with ecological situations. With the help of spatial data analysis of population density and urbanization for the studied countries, we can separate them into different groups. As a result of the analysis, the countries with high HDI and Gross national income (GNI) per capita has a clusterization in different groups due to the role of scientific research and industrialization as in the case with a high volume of trade (exports and imports) per capita and high urbanization. The main difference between them is that the role of innovation in economic growth can generate the same or higher HDI as in the case of a high volume of trade (exports and imports) per capita. But it is possible to separate them with the help of population density and urbanization. It looks like countries with a high volume of trade (exports and imports) per capita have the highest level of urbanization. Based on this approach it is possible to separate the countries with the same HDI value and different income or similar income and different HDI values.